Just imagine – as you’re going through your favourite coffee drive-thru this week – that a well-dressed gentleman stops and offers you $11,000 for your medium double double. Who would hesitate? We’d take the cash. It’s not so far-fetched. In fact, if you take that coffee budget and apply it to your monthly mortgage payment – a mere $30 extra per month –you could save yourself about $11,000 over the life of your mortgage.

Here are a few strategies for fast-tracking your mortgage:

Increase your monthly payments. Rather than choosing your amortization period first, ask yourself how much you can afford each month. For example, you may feel that you can afford $1,000 per month. You’re delighted when your $125,000 mortgage only demands an $800/month payment (at a 6 per cent interest). But make a monthly payment of $1,000 instead, and you’ll shave 8.75 years and almost $46,000 off your total interest cost.

Tie mortgage payments to your pay schedule. Many Canadians are paid on a bi-weekly schedule. If you accelerate your payments to bi-weekly instead of monthly, you could improve your own cash flow and fit in an extra payment each year. That means that you’re paying off principal faster – leaving you with less interest to pay overall. It doesn’t seem like much but – like putting your coffee budget to work – the bi-weekly strategy can have you mortgage free four years sooner, with almost $22,000 in savings.

Consolidate your loans into a new mortgage and use the savings to boost your payments. If you’re a homeowner with some equity, you can use your mortgage to consolidate your other loans: student loans, car loans, etc. Add the money you’ve been spending on loan payments to your mortgage payments, and you could see big savings in overall interest.

Take a look at your RRSP. A popular financial tactic for those who are in a situation where it makes sense, increase your contributions to your RSP and use the refund to make a lump sum payment on your mortgage. This may help reduce your tax liability at the same time as paying down your debt.

Make sure you have a Mortgage Specialist who can help you save over the “life” of your mortgage, not just the existing “term”. Have your mortgage evaluated at each renewal to be sure you are receiving the lowest possible rate. The average rate over the life of the mortgage, not just the current term, is what determines your overall cost..

When mortgage rates are at historic lows, it is important to investigate where your dollar is best spent, or saved. This may involve more sophisticated financial planning based on your personal situation and when dealing with your professional mortgage broker, be sure to have your options explained to ensure best long term results.

Jacqui Mulikow, is a Professional Mortgage Agent with Mortgage Intelligence http://www.mortgageintelligence.ca/jacquimulikow