By Joel Marshall | Marshall & Company
Paying your mortgage off faster usually means directing more money toward the principal, within your lender’s rules. Accelerated payments, manageable payment increases and occasional lump sums can help. The right approach also leaves room for repairs, emergencies and your next move.
For an Ottawa homeowner, the goal should be a plan you can sustain. A smaller mortgage balance is useful, but so is having cash available when the furnace needs attention or your household’s circumstances change.
Here are five options to discuss with your lender or mortgage broker.
Before you start: find out what your contract allows
Ask your lender to confirm your remaining prepayment allowance, permitted payment increases, eligible dates and how the allowance resets. Do not assume unused room carries forward.
Exceeding your allowance, breaking a closed mortgage or paying it out before the term ends can trigger a charge. Selling the home does not automatically remove that possibility. Get a written estimate before committing to a transaction that could trigger a penalty. FCAC guidance on prepayment penalties
1. Compare accelerated biweekly with ordinary biweekly payments
“Biweekly” and “accelerated biweekly” are not interchangeable. The accelerated option generally takes half of the monthly mortgage payment every two weeks, producing the equivalent of an extra monthly payment over 26 payments. RBC’s payment-frequency explanation
For a hypothetical monthly payment of $2,800, the annual cash commitment looks like this:
The accelerated example commits an additional $2,800 a year. These are payment-budget calculations, not a lender quote or a prediction of interest savings. Your lender’s exact amounts and debit dates may differ.
Check how the withdrawals fit your pay schedule, including months with three biweekly payments. The extra amount needs to be affordable throughout the year, not just on an annual spreadsheet.
2. Increase the regular payment by a sustainable amount
A modest increase can be easier to maintain than an ambitious target. For example, an extra $150 each month adds $1,800 in payments over a full year.
Confirm the permitted increase and whether you can reverse it. FCAC notes that increased payments normally cannot be reduced again until the term ends. FCAC’s mortgage-payoff guidance
Before increasing the commitment, review your complete housing budget. Property taxes, insurance, utilities and maintenance still need funding. My Ottawa home carrying-cost guide provides a practical checklist.
3. Give occasional surplus cash a job
A bonus, tax refund or money left after a planned expense can create an opportunity for a lump-sum payment. CIBC identifies annual lump sums as one way to reduce a mortgage faster, subject to the mortgage’s terms. CIBC’s repayment strategies
Decide how much is genuinely available before sending it. A $5,000 surplus does not have to become a $5,000 prepayment if you also need money for a roof repair or an upcoming move.
Confirm that the payment will be applied as an additional principal payment, and check your remaining allowance and timing with the lender. Once money is paid into the mortgage, accessing it again may require borrowing and approval. Treat that loss of easy access as part of the decision.
4. Keep your payment steady if renewal brings a lower required payment
If a renewal results in a lower required payment, maintaining the previous amount can help reduce the mortgage faster, provided the arrangement is permitted and affordable. A lower renewal rate is a possibility, not a forecast. FCAC on maintaining payments
For example, if a new required payment were $2,650 and you could comfortably maintain $2,800, the difference would be $150 per month. Ask your lender to show the effect on your repayment schedule.
If renewal makes payments more expensive instead, revisit your budget first. Accelerated repayment should not depend on money you need for essential expenses.
5. Review the amortization, not just the payment, at renewal
A shorter amortization can accelerate repayment, but it generally requires a higher payment. CIBC includes shortening amortization among its mortgage-payoff options. Ask for side-by-side quotes using your actual balance and available rates. CIBC’s mortgage-payoff guide
Compare the required payment, expected balance at the end of the next term, prepayment flexibility and costs. Understand what happens if you choose to extend repayment instead.
This is particularly relevant if your Ottawa home is a stepping stone. Someone expecting to move in a few years may value access to cash and mortgage flexibility differently from someone settling in for the long term. Discuss a possible sale or move before choosing the contract.
How much faster could you become mortgage-free?
There is no single answer. Your balance, rate, remaining amortization, timing of extra payments and future renewal terms all matter.
Ask for two repayment schedules: your current plan and the proposed change. Compare balances at the end of your current term as well as any projected lifetime savings. Long-term projections depend on assumptions about rates that may not hold.
You can explore the extra-payment feature in the Marshall & Company mortgage calculator as an illustration. Its current model assumes a constant rate with monthly compounding, uses U.S.-style PMI below 20% down, and does not model Canadian default insurance, renewals or prepayment limits. Confirm Canadian financing figures and permitted payments with your lender.
Keep the bigger household plan in view
Before choosing an extra-payment amount, consider:
Cash needed for foreseeable repairs and an emergency reserve.
Other debts and their interest rates.
Upcoming moving, family or retirement expenses.
Whether the payment change can be reduced if your income changes.
Fees or penalties that could offset the benefit.
Paying down the mortgage and keeping financial flexibility both deserve attention. Your lender or financial adviser can help compare those priorities for your circumstances.
Planning your next Ottawa home move?
My role as an Ottawa real estate agent is to help you connect the property decision with your plans: how long you expect to stay, the home’s maintenance needs, and the costs of buying or selling. Your lender handles the financing and confirms your mortgage options.
Contact Joel Marshall at Marshall & Company to discuss your next move in Ottawa and the property questions to consider before you commit.
Prepared November 6, 2026. General information, not personalized mortgage or financial advice. Examples illustrate payment amounts, not guaranteed interest savings. Confirm terms, eligibility and charges with your lender.
