When it comes to taking on a responsibility as great as a mortgage, you can’t help but think about what you would do with those monthly payments if your house was already paid off. You may not be able to avoid mortgage payments altogether, but if you make smart decisions at your contract signing, you can certainly free up that cash a lot sooner. Looking for a way to pay off your house faster? Browse these mortgage payment tips.

One kind of contract you should consider is an adjustable rate mortgage, especially if you are buying a starter home or plan to expand within five to ten years. This is because adjustable rate mortgages offer the advantage of lower interest rates to start, despite the unknown factor of how that rate can fluctuate over the long-term. These kinds of mortgages are often a good idea for home buyers not looking to settle into a lifelong home yet, however, because they are the kind of buyers who can avoid the adjustable rate by selling and moving into a bigger home before it takes effect. Talk it over with your lending professional after researching mortgage brokers with Ratesupermarket.ca.

A bit of negotiation skill is also key to choosing a mortgage contract that can free up some of your cash. One popular tactic is to buy points off of your interest rate by putting in a flat fee upfront. One mortgage point is equal to one per cent of the value of your home, and the more points you are able to buy, the lower your interest rate will go.

If you don’t feel that you have enough cash to make point purchases, you could also use your power of persuasion to bring in the seller on your contract. If you can convince the seller to buy your interest rate points instead of lowering the price, you’ll arrive at a solution that benefits both parties: you won’t have to front the cash to get a lower interest rate, and your seller won’t have to accept tens of thousands of dollars less than his or her asking price.

Other than looking at the interest rate, you should also pay attention to the term of your mortgage. In general, the shorter the term, the lower the interest rate, but make sure not to take on too big of a housing payment, or you may jeopardize your financial future. Some tactics that can help you pay off your mortgage ahead of time or help keep you on time with payments if you choose a longer term include making one additional monthly payment each year or choosing a bimonthly payment plan.

Lastly, just as importantly as how you choose a mortgage is when you choose a mortgage. Since spring is a prime time of the year for buying homes, many banks and mortgage sales companies will lower rates to entice those who weren’t already on the market. In March 2012, Bank of Montreal set off the season early by slashing Canadian mortgage rates on five-year mortgages to just 2.99 per cent. That’s nearly half of the normal rate for such mortgage terms, which is closer to 5.24 per cent. Ten-year mortgages were also cut, to 3.99 per cent. Several other major banks followed suit, making this month one of the best on record for getting into the mortgage market.

Remember to make wise mortgage decisions, and you’ll be able to slash thousands of dollars off the total cost of your home.

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