4 Ways to Reduce Your Mortgage Debt

Katherine Martin • January 8, 2015

Debt Repayment Top Financial Priority for Canadians in 2015

According to CIBC’s yearly poll on consumer financial priorities, paying down debt continues to be the top financial concern for Canadians.

22 per cent of those polled said debt repayment is their top financial priority for 2015, up from 16 per cent a year ago.

Most of the time when people hear the word “debt” they typically think of credit cards, student loans, vehicle financing, or a line of credit. Typically they aren’t that far off. In modern society “debt” has come to mean consumer debt, and being “out of debt” means that you don’t owe any money except maybe on your mortgage.

Well, even if all your credit cards and line of credits have a zero balance and you own your vehicle outright… but you have a mortgage, you still have debt.

So here are 4 ways you can reduce your mortgage debt.

1. Accelerate Your Payment Frequency

Making the change from monthly payments to accelerated bi-weekly payments is one of the easiest ways you can make a difference to the bottom line of your mortgage. Most people don’t even notice the difference.

A traditional mortgage splits the amount owing into 12 equal monthly payments. Accelerated biweekly is simply taking a regular monthly payment and dividing it in two, but instead of making 24 payments, you make 26. The extra two payments really accelerate the pay down of your mortgage.

2. Increase Your Mortgage Payment Amount

Unless you have a really bad “no-frills” mortgage, chances are you have the ability to increase your regular mortgage payment by 10-25%. This is a great option if you have some extra cash flow to spend in your budget.

By voluntarily increasing your mortgage payment, it’s kinda like signing up for a long term forced savings plan where equity builds in your house rather than your bank account. The extra money goes directly towards the principle repayment of your mortgage and is not a pre-payment of interest. This definitely works in your favour as it lowers the amount of interest you owe over the total time you have your mortgage.

3. Make a Lump Sum Payment

Again, unless you have a “no-frills” mortgage, you should be able to make bulk payments to your mortgage. Depending on your lender and your mortgage product, you should be able to put down anywhere from 10-25% of the original mortgage balance. Some lenders are particular about when you can make these payments, however if you haven’t taken advantage of a lump sum payment yet this year, you will be eligible.

Are you getting a nice tax return this spring? Maybe you should consider making a lump sum payment with it this year. Or take a warm holiday next winter, it’s totally up to you! However any lump sum payment will make a huge difference in how fast you will pay off your mortgage.

4. Mortgage Refinance

Now, if debt repayment is the top financial priority for Canadians in 2015, there is obviously a reason. A lot of people have consumer debt, plain and simple.

If you can’t seem to get a handle on your consumer debt, but you own a property with significant equity, you should consider renegotiating your current mortgage. You might be able to access some of the equity you have built up in your property to pay off your consumer debt. This will not only improve your cashflow, but it will lower your overall cost of borrowing.

From there you could take the money you would have otherwise been paying on your consumer debt and increase your mortgage payment and take advantage of your prepayment privileges. It’s a win win… pay off your consumer debt AND start a plan to pay down your mortgage debt faster.

Not only can I help you get a mortgage, I can help you with the plan to get rid it.

 

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


RECENT POSTS

Bank of Canada Holds Rate at 2.25% — September 2, 2026

By Katherine Martin • September 2, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. While Canada's economic recovery is broadening, a new layer of uncertainty has entered the picture. Here is what happened and what it means for your mortgage.

How Property Type and Condition Influence Mortgage Financing

By Katherine Martin • August 26, 2026
Why the Property Matters When You’re Qualifying for a Mortgage When qualifying for a mortgage, lenders typically look at four core areas: Income Credit Down payment or equity The property itself Most buyers focus heavily on income, credit, and savings—and for good reason. But even if those boxes are checked, the property can still determine whether a mortgage is approved. Why Lenders Care About the Property From a lender’s perspective, the property is the collateral for the mortgage. In the unlikely event of default, they need to know the home can be sold quickly and at fair market value to recover their funds. Because of this, lenders are careful about the condition, value, and marketability of any property they finance. Homes that are in poor repair, unconventional, or overpriced can raise red flags—even when the borrower is well qualified. Appraisals Are Always Part of the Process Every mortgage requires an appraisal to confirm value. Insured mortgages (through CMHC, Sagen, or Canada Guaranty) often use an automated valuation model completed online. Conventional mortgages typically require a full, on-site appraisal by a certified appraiser. This appraisal is not optional and happens after an offer is accepted—not at the pre-approval stage. Why Pre-Approvals Aren’t a Guarantee A pre-approval is a great first step, but it only assesses you, not the property. Once you’ve made an offer, the lender must approve the specific home you’re buying. Understanding this upfront helps avoid surprises and confusion later in the process. The Risk of Buying Without a Financing Condition In competitive markets, buyers sometimes remove financing conditions to strengthen their offer. However, this comes with risk. If the appraisal comes back low—or the lender is concerned about the property’s condition—you could be denied financing after the offer is firm. In that scenario, your deposit may be at risk. Buying a Home That Needs Work If you’re considering a property that isn’t in perfect condition, there are solutions. A purchase plus improvements program allows you to buy a home and include renovation costs in your mortgage. The process is structured and requires planning, but it can be an excellent way to turn a fixer-upper into a great long-term investment. Final Thoughts Mortgage approval isn’t based solely on your finances—the property matters just as much. Knowing this ahead of time helps you make smarter offers, reduce risk, and plan more effectively. If you’re buying a property that needs work or want clarity on how a lender may view a specific home, feel free to reach out. I’d be happy to walk you through your options and help you plan with confidence.
© 2026 

Katherine Martin. All Rights Reserved.