Summary:

Mortgage Prepayments allow you to pay down your mortgage faster by making extra payments beyond your regular schedule.
This article explains how prepayments work and how to track them in the application.

Note: Mobile browsers have a simplified UI which may not contain all controls. For best experience, a desktop browser is recommended.

What Are Prepayments?

Prepayments are additional payments made toward your mortgage principal, beyond your regular scheduled payments. They can significantly:

• Reduce your total interest paid
• Shorten your amortization period
• Build equity faster

Types of Prepayments:

Adding a Prepayment:

1. Navigate to your mortgage details.
2. Click Add Prepayment or the prepayment icon.
3. Enter the prepayment amount and date.
4. Select the prepayment type.
5. Save to update your mortgage projections.

Prepayment Limits:

Most mortgages have prepayment privileges that limit how much extra you can pay without penalty:

• Annual Lump Sum: Typically 10-20% of the original principal per year.
• Payment Increase: Usually 10-20% increase to regular payments.

Warning: Exceeding your prepayment privileges may result in penalties. Check your mortgage terms.

Impact on Your Mortgage:

When you add a prepayment, the application recalculates:

• Remaining amortization period
• Total interest savings
• Updated payoff date
• Equity position

Viewing Prepayment History:

1. Open your mortgage details.
2. Navigate to the Prepayments tab.
3. View all recorded prepayments and their impact.

Tips:

• Even small regular prepayments can save thousands in interest over time.
• Apply windfalls (bonuses, tax refunds) as lump sums.
• Consider accelerated bi-weekly payments—you make 26 half-payments (13 full payments) per year instead of 12.
• Review your prepayment privileges annually and use them fully.

Additional Information:

• See the Payment Calculator help article to model different prepayment scenarios.
• See the Adding Mortgage help article to set up your mortgage for tracking.