Calculator
Extra payments — recurring or a one-time lump sum — can take years off your mortgage. See exactly how much.
You could pay off this mortgage
4.8 years earlier
Interest saved
$80,113
New payoff time
20.3 yrs
Most Canadian mortgages allow prepayment privileges — commonly 10%-20% of the original principal per year, either as lump sums, increased regular payments, or both — without penalty. Check your specific mortgage contract, since limits and penalty structures vary by lender.
Yes — prepayments are applied directly to principal, on top of your regular scheduled payment, which is what shortens your amortization and reduces total interest paid.
Mathematically, the earlier extra principal is applied, the more interest it saves, since interest is calculated on the remaining balance. A lump sum applied early has an outsized effect for the same reason — but consistent extra monthly payments compound similarly over time. Try both in the calculator to compare your specific numbers.