3 Ways to Pay Down Your Mortgage Today!

Diane Buchanan • July 6, 2016

Mortgages are funny things. When you’re buying a house, you can’t wait to hear these words: “Your mortgage has been approved”. But what that really means is that you are going to be a homeowner. And as discussed in the previous article, there is a lifestyle element of homeownership that is very attractive. But let’s not fool ourselves, a mortgage is debt; it’s money owed. When you sign mortgage documents, you are most likely taking on the most debt you will ever be responsible for.

The best kind of mortgage is one that is paid off as quickly as possible. So let’s go over three ways you can pay down your mortgage as quickly as possible. Because the very best mortgage is no mortgage at all!

Accelerate Your Payment Frequency

Sounds simple enough, but making the change from a monthly payment to an accelerated bi-weekly payment is one of the easiest ways to turbo-charge the repayment of your mortgage over a long period of time. Chances are you won’t even notice a difference.

Typically, on monthly payments, your mortgage is split into 12 equal payments. Accelerated bi-weekly payments divide your payments in half, but rather than 24 payments, you make 26. It’s the extra 2 payments that accelerate the repayment of your mortgage.

Increase Your Mortgage Payment

Unless you have a no-frills mortgage, which are popular with some banks, you should be able to increase your payment amount by 10–25% per payment! So if you get a raise at work, or happen to pay off a debt, consider rolling this newfound money directly into the prepayment of your mortgage.

Increasing your regular payment is a lot like signing up for a forced long-term savings plan. The extra money you put on your mortgage isn’t a prepayment of interest, but actually goes directly to the principal and lowers the amount of interest you pay over time.

The good thing about increasing your payment voluntarily is that if money gets tight in the future, you can always have your payment reduced to the original amount!

Making a Lump-sum Payment

As with the regular payment increase, when you make a lump-sum payment to your mortgage everything goes directly towards the principal balance. Most mortgage products allow you to put anywhere from 10–25% of the original mortgage amount as a lump-sum payment once per year.

The lump-sum payment option is perfect for any time you receive an unexpected amount of money and you aren’t exactly sure what to do with it, like an inheritance. If you receive a year-end bonus, make a habit of applying it to your mortgage. You could take years off your amortization! 

Not sure where to spend your tax return? Well, you should probably consider taking a nice warm vacation this winter. We live in Canada, and its cold here, although you might not remember that right now, because it’s July and it’s gorgeous outside. (You thought I was going to suggest you make a lump-sum payment on your mortgage? Well, you can do that too if you like, but a warm vacation is a lot more fun!)

There you have it, it’s a collection of the small things you can do today that will help you be mortgage free tomorrow. 

This article was originally published in the July 2016 Dominion Lending Centres Newsletter.

DIANE BUCHANAN
 Mortgage Broker

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What Mortgage Lenders Need to Know About Your Down Payment Source

By Diane Buchanan • November 4, 2026
Why the Source of Your Down Payment Matters More Than You Think When buying a home, most people focus on how much they need for a down payment. What often gets overlooked is that where the down payment comes from matters just as much to the lender . The source of your down payment affects approval, risk assessment, and how your mortgage is structured. Here’s why lenders care—and what you need to know. 1. Anti–Money Laundering Requirements Lenders aren’t just being cautious—they’re legally required to verify the source of your down payment. To comply with anti–money laundering regulations, lenders must document where every dollar of the down payment came from on every purchase. Acceptable Down Payment Sources Down payments can come from: Your own savings or investments Borrowed funds through an insured program (such as FlexDown) A gift from an immediate family member How You Prove the Source Personal savings: You’ll need bank statements showing the funds have been in your account for at least 90 days , or proof they were accumulated through payroll deposits or other acceptable sources. Borrowed funds: Any borrowed portion must be included in your debt service ratios , since you’re responsible for repayment. Gifted funds: A signed gift letter is required confirming the money is a true gift with no repayment obligation , along with proof the funds were deposited into your account. 2. Financial Suitability and Risk The source of your down payment also tells the lender a lot about your financial habits. Down payments coming from your own savings demonstrate: Positive cash flow The ability to save consistently Strong financial management This reassures lenders that you’re more likely to keep up with mortgage payments. If the down payment is borrowed or gifted, lenders may look more closely at the rest of your application to ensure the mortgage remains affordable. Why a Larger Down Payment Helps From a lender’s perspective, more equity equals lower risk. The more money you have invested in the property, the less likely you are to walk away from the mortgage. This reduces the lender’s exposure and can sometimes result in better terms. 3. Down Payment and Loan-to-Value (LTV) Your down payment directly establishes your loan-to-value ratio (LTV)—the percentage of the property’s value being financed. In Canada: Lenders can finance up to 95% of a property’s value The buyer must contribute at least 5% as a down payment Example: On a $400,000 purchase: Maximum mortgage = $380,000 Minimum down payment = $20,000 How the Source Affects LTV Property value must be genuine and independently supported. Lenders rely on appraisals and comparable sales—not artificial price inflation. If: The seller provides money back The buyer doesn’t bring the full down payment independently Funds move “behind the scenes” …the lender considers this a change to the LTV and may decline the mortgage. All financial details of the purchase must be fully disclosed. Non-disclosure is mortgage fraud , and lenders will not proceed if the numbers don’t align. Final Thoughts Lenders ask for detailed documentation about your down payment source for good reason—it affects legality, risk, and the structure of your mortgage. Understanding these rules upfront helps avoid delays, declined applications, and last-minute surprises. If you’d like to review your down payment options or talk through mortgage financing, feel free to connect anytime. I’d be happy to walk you through the process and help you plan with confidence.

Bank of Canada Raises Rate to 2.5% — October 28, 2026

By Diane Buchanan • October 28, 2026
On October 28, 2026, the Bank of Canada raised its key interest rate by 0.25%, bringing it to 2.5%. If you have a mortgage, are shopping for a home, or have a renewal coming up, this decision matters. Here is a plain-language look at what changed, why it happened, and what it could mean for you.