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ATB Mortgage Solutions:
Saving Money on your Mortgage
ATB
Financial offers a variety of ways to help save you money on your mortgage.
To learn more about our money saving mortgage strategies, select an
item from the list below:
Reduce Your Amortization:
Reducing your amortization period and increasing your regular payments
will save you thousands of dollars in interest costs over the life of
your mortgage.
Example:
$200,000 Mortgage @ 6% P.A.1
Amortization2 |
Monthly Payment |
Total Payment |
Total Interest Costs3 |
Interest Saved |
15 years |
$1,679.77 |
$302,357.81 |
$102,357.81 |
$81,526.16 |
20 years |
$1,424.38 |
$342,850.45 |
$141,850.45 |
$42,033.52 |
25 years |
$1,279.61 |
$383,883.97 |
$183,883.97 |
N/A |
In this example, simply choosing a 15 year amortization period instead of 25 years will save over $81,000 in total interest costs.
1 Per annum, calculated half yearly not in advance. The rate shown is an example and is not necessarily applicable to an actual mortgage. Great care has been taken in the preparation of this table, however, there is no guarantee of complete accuracy.
2 Assume same interest rate for entire amortization period.
3 Over the life of the mortgage.
Increase Your Payment Frequency:
Choose the payment frequency that's most convenient for you based on how often you're paid: weekly, bi-weekly (every two weeks), or monthly. Increasing your payment frequency will save you money in interest costs over the life of your mortgage.
Example:
$200,000 Mortgage @ 6% P.A.1
|
Payment Frequency |
Monthly Payment |
Actual Amortization (years) |
Total Interest Costs3 |
Interest Saved |
| Monthly |
$1,279.61 |
25 |
$183,883.97 |
N/A |
| Bi-Weekly |
$639.81 |
21 |
$148,910.17 |
$34,973.80 |
| Weekly |
$319.90 |
21 |
$145,519.44 |
$35,364.53 |
You may change you payment frequency at anytime at no cost.
1 Per annum, calculated half yearly not in advance. The rate
shown is an example and is not necessarily applicable to an actual mortgage.
Great care has been taken in the preparation of this table, however,
there is no guarantee of complete accuracy.
2 Assume same interest rate for entire amortization period.
3 Over the life of the mortgage.
20 + 20 Pre-Payment Privileges:
For closed mortgage terms, this is an innovative way to pay for your
home faster while saving on interest costs.
Increase Payments by 20%
Gives you the option to increase your mortgage payment (principal
and interest) by up to 20% over the current payment. Can be exercised
once, at any time, each calendar year at no cost.
Prepay by 20%
Gives you the opportunity to prepay up to 20% of your most recent loan agreement amount each calendar year4.
Example:
$200,000 Mortgage @ 6% P.A.1
|
Pre-payment choices |
Standard
25-year amortization |
Increase mortgage payments
once by 20% and increased payment maintained |
Make payment of 20% ($16,000
at end of 1st year only) |
| Mortgage repaid in months |
300 |
193 |
189 |
| Total interest costs3 |
$183,833.97 |
$121,118.00 |
$95,718.58 |
Interest saved vs. standard
25-year
amortization |
N/A |
$62,715.97 |
$88,115.39 |
1 Per annum, calculated half yearly not in advance.
The rate shown is an example and is not necessarily applicable to an actual
mortgage.
Great
care has been taken in the preparation of this table, however, there is
no guarantee of complete accuracy.
3 Over the life of the mortgage.
4 Theses privileges are non-cumulative from year to year
For more information on ATB Financial's mortgage solutions, visit any
branch of ATB Financial, or call us today at 1-877-424-4045 (toll
free). For the branch hours and address of the ATB Financial location nearest you, please use the Branch
Locator.
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