Got Five Minutes to Save Money on Your Mortgage This Year?

With the new year on our doorsteps, many of us are thinking of the resolutions and goals we’d like to set forth for 2011. Here’s an excerpt from a timely article in the Globe and Mail about something probably appearing on everybody’s list – saving more money….

Another year has come and gone and you’re wondering how to improve your finances. You’ve relinquished your latte habit and given your shoe fetish the boot, yet you don’t seem to be able to save as much as you’d like. It’s too hard to trim expenses, you say. It takes too much time to budget. And, blech, comparison shopping for the best prices zaps your strength.

Take heed, spendthrifts, there is an easier way to save money. Put aside your excuses for five minutes as we guide you through five easy steps to a wealthier new year.

Mortgage

If you do nothing else to save money in the new year, take five minutes to see how increasing or accelerating your mortgage payments can save you thousands of dollars in interest. Grab your latest mortgage statement, plug your numbers into Industry Canada’s online mortgage calculator, then play around with the figures.

See how much you could save if you switched to biweekly payments or increased the amount by 5 per cent or more.

The site can also show you what would happen to your payments if interest rates changed or you refinanced your mortgage. That should provide all the incentive you need to plan your mortgage-burning party.

Find more calculators like this here

Credit Cards

According to RateSupermarket.ca, nearly half of Canadians have not changed their credit card company in the past five years. If you’re part of that complacent group, it’s time to do some comparison shopping. You can find online comparison tools at many sites, including the FCAC. Answer a few questions about your spending habits and what type of card you’d like and voilà: a table of credit cards appears with all the fees and features compared. Spending five minutes to find a better credit card deal: priceless.

To learn more about saving on car insurance, banking and cell phones, check out the full article.