Taking advantage of your mortgage pre-payment privileges is a great way to become mortgage free faster. First National is Canada’s largest non-bank lender and is one of the lenders I recommend because they have some of the most flexible pre-payment privileges available in the industry.
First National offers the following pre-payment features on their mortgages:
Annual 15% Mortgage Principal Prepayment
15% of the original mortgage amount can be paid per anniversary date. This can be done in a one-time lump sum payment or as an ongoing lump sum attached to your regular payments. The minimum prepayment amount is $100. The anniversary year is based on the date that the mortgage funded. Watch out for lenders that only let you make a single pre-payment on your anniversary date. By taking advantage of regular pre-payments throughout the year you have the opportunity for more savings on interest.
Double-Up Mortgage Payments
On any regular payment date, clients can double-up on their payment of principal and interest. The full amount of the extra payment is applied directly to the principal of the mortgage. This is a great feature offered by First National. Have some extra cash one month? Doubling up your payment just once can have a huge impact on your savings over the long term.
15% Mortgage Payment Increase*
Once per year, your regular payment can be increased by up to 15%. The increased amount will be applied directly towards reducing the principal balance. *Not available for First National’s Adjustable Rate Mortgage.
These options can be used at the same time, and all extra payments that are made are applied directly to principal.
Mortgage Payment Frequencies
Monthly, Semi-monthly, Bi-weekly, Weekly, Accelerated and non-accelerated. You can change the mortgage payment frequency once per year at no cost.
How to make changes to your First National Mortgage
First National has an excellent online portal where clients can check their mortgage balance, make pre-payments and change their payment frequency or amount online called MyMortgage. Changes can also be made by calling 1.888.488.0794 Monday to Friday 8:30am to 8:00pm (EST). Changes can also be made by me if client authorization is obtained. For more information or to see how taking advantage of your mortgage pre-payments can help you become mortgage free sooner please contact me.