March 2013 - How to reduce your mortgage principal

March 2013 - Hammer Home News


Dearest friends,

Hope you are all doing well and getting excited about how close we are to Spring, I know I am certainly getting ready for what is to come this year in the real estate market.

This month I thought I would mention a few key points I found about mortgages, as they are the largest debt that one undertakes. I get questions all the time about getting into investment properties or second homes and reducing your mortgage might be a great way to start. I have wonderful Mortgage Brokers to refer you to if you are thinking of your mortgage options, but in the meantime, try one of these strategies to help reduce your mortgage principal.

Make bi-weekly mortgage payments

  • Bi-weekly payments involve 26 half-payments each year instead of the standard 12 full payments. By making 13 full payments each year, you’ll pay down the principal sooner and reduce the amount of interest you’ll pay over the long run.
Increase your mortgage payment
  • You can also increase the amount you pay towards the principal of the payment each month. Most people have higher incomes a few years into their mortgage than they did when they first took it out. Keeping your payment on par with your increases in income will help reduce your mortgage amount significantly and may also reduce the amount of your monthly payment over time.
Make additional payments
  • If bi-weekly payments or increasing your monthly mortgage payment are not feasible, try to make extra payments when you can. If you have extra money at the end of the year, put it toward your principal.
As always, thank you for your continued support of my enewsletter. If you have any questions or concerns about buying or selling, or know someone who does, feel free to email me at, always happy to help you with your real estate needs.



What first time home buyers really need:

Affordable housing prices

While mortgage brokers are pressing the federal government to bring back 30-year mortgages and give first-time buyers a bigger tax break, Globe and Mail readers are not convinced that easing mortgage rules is the answer to the problem.

When the Globe and Mail asked readers in an online poll whether Ottawa should make it easier for first-time buyers to enter the real estate market, only 40 per cent of the nearly 2,500 respondents said yes, first-time buyers deserve a break.

"First-time buyers have all-time low rates, realistic 25-year terms, and minimum 5-per-cent down payments," one reader wrote in our comments section. "If they can't afford it, then the prices are too high. The hurdle is low enough for Canadians."
This Month's Trivia Question:

A bathroom with a door to the master bedroom as well as a door to the main house is called what?

The first five individuals to respond correctly will win a $10.00 gift card to Starbucks. Email your answers to

Last Month's Trivia Question:
What are the Winterlude Mascots and what is the traditional Winterlude food item?

The Answer was: The Icehogs and Beavertails.

Congratulations to:
Candice, Joanne, Jamie, Chantal and Jason to be the first five to answer last month and win a $10.00 gift card to Starbucks.
Feature of the Month
4317 Goldeneye Way

Welcome to 4317 Goldeneye, a stunning 4 bedroom home plus den, 2008 built Hastings model by Richcraft. This home has been meticulously maintained and pride of ownership can be seen throughout.


Rachel Hammer, Broker

Copyright © *|2013 *|Rachel Hammer Coldwell Banker, First Ottawa Realty, All rights reserved.

Our mailing address is: 1419 Carling Avenue, Ottawa ON K1V 7L6

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