Quote:
Originally Posted by Flabbibulin
One last question- is it true that you cant make extra payments or request an increase in your monthly payment if you are on a fixed rate? Or perhaps you can, but there are conditions? ie. has to be a certain minimum amount, can only do it so many times per year etc??
edit- at least this is the understanding I am getting from my contract. A little confusing for the layman though. Perhaps I should ask my mortgage broker to dumb it down for me??
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It depends who your mortgage is through, but yes you can. Talk to your lender and find out there specific rules. I know with ATB at least you can increase your payment by up to 20% of the original payment amount and 20% per year lump sum on the principle.
Just make sure that increasing is the thing you want to do as sometimes situations change and reducing them can sometimes be a pain. Sometimes it just makes sense to do lump sums.