There's nothing like that feeling when your home is paid off and all yours. A mortgage-free home is a valuable asset. It's a primary financial goal for many Islanders, who see it as a major step toward financial freedom, especially in retirement.

One way to achieve that goal sooner is to take advantage of a lump sum payment when your mortgage term ends and/or each year on your mortgage anniversary. It's well worth considering.

What is a lump sum payment?

A lump sum payment is a one-time amount of money paid directly on to your principal Balance Owed, ultimately saving you money and shortening your mortgage.

Why make a lump sum payment?

Here are some benefits:

• Lower your mortgage payments to improve your cash flow
• Reduce how much interest you pay over the lifespan of your mortgage
• Pay off your mortgage sooner

Good to know: Another way to shorten your mortgage and save on interest is to increase your mortgage payment when you renew, and/or once a year on or after your mortgage anniversary. Read Changing your mortgage payments.

When to make a penalty-free lump sum payment

1. At the end of your mortgage term when you renew
2. Each year on the anniversary of your mortgage

How to make a lump sum payment

If a lump sum payment sounds like a good option for you, save and earmark the amount you want to pay into your mortgage so you don't use it for something else. When your current mortgage term ends, and/or your annual mortgage anniversary comes around, talk to us about making a one-time, penalty-free payment to bring that mortgage-free feeling a big step closer. 

You can also learn more about renewing and refinancing your mortgage here or check out our mortgage calculator to play around with some numbers. Give us a call at 1-888-741-1010 to see what you can save.