Freedom is as easy as one, two, three

To be mortgage-free faster, it is up to borrowers to take the necessary steps to accelerate  payments. And it's not as simple as waiting until your lucky six numbers come up in the lotto.  Paying off a mortgage sooner is all about strategy and automation.

Here are three ways to cut your mortgage down to size.

Understanding how they affect rates, penalties
Pre-payment privileges are the single-most overlooked aspect of a mortgage by borrowers.  Consumers, for whatever reason, seem to gloss over them as if they are a feature of the  mortgage that will never be used.

However, pre-payment privileges are important. They are what allow a borrower to reduce his or her amortization from 25 years to 10 years. They can also affect interest rates and payout penalties, which is why a better understanding of how they work, is important.

Low rates and product features

For decades, the process of selecting a mortgage has been the same: go to the bank, choose  between a fixed or variable and don't ask any other questions.

Oh how things have changed. A mortgage is no longer just a mortgage.

There are many things to consider when it comes to finding financing. The first and foremost is whether the bank you love for your everyday needs is the one that is right for your mortgage needs. Ask what rates your bank will offer you without any haggling. You may find they're not as attractive as elsewhere.

Best options beyond five-year terms

 With interest rates remaining at all-time lows and, for the first time in years, staying that  way this fall, some consumers are starting to wonder whether a five-year fixed mortgage is    the best option – especially given recent news of payout penalty nightmares.

As a result, we have selected our top three non five-year mortgage products for the fall market.

How to avoid costly mistakes before you have keys in hand

 Many homebuyers do not realize that even with an approved mortgage and after meeting the  necessary financing conditions, they are not guaranteed a loan until it has funded on the  closing date.

There are several things to consider to ensure a mortgage closes smoothly, and on time.

The first thing is avoiding the need to take on additional credit. While it may be tempting to load up on new furniture and appliances, do not apply for a loan to buy them. Even an interest-free, no-payment loan can affect whether someone qualifies for a mortgage. Wait until you have the keys to your new house before borrowing money.

Mitigation starts before choosing a mortgage

Last week, CBC's Go Public reported on an Edmonton couple that were shocked to learn their bank wanted a $17,000 payout penalty to end their mortgage early.

Just days earlier, a B.C. mortgage broker posted a client's $26,000 payout statement from another bank on Facebook that went viral.

And in July, a B.C. Supreme Court judge certified a class-action lawsuit against yet another financial institution for unfair payout penalty practices.

Plenty of options available to buyers
When buying a home, the first thing to consider is the down payment.

Most people know they need at least five per cent of the purchase price as a minimum  requirement, and 20 per cent to avoid Canadian Mortgage and Housing Corp. (CMHC) mortgage insurance. However, many people do not realize there are more places to come up with a down payment than just your savings. Here are a few of the most common:

Savings
The first and most common source of a down payment is a person or a couple's savings. First you save, then you buy the house – pretty straightforward.

'Don't pay off someone else's mortgage'

Many of us remember our parents telling us it is better to own a home than rent one at some point in time – "don't pay off someone else's mortgage," they'd say.

They could not have been more correct.

So why are many people still choosing to rent when owning a property can be so financially rewarding?

Convenience, diversity key to big-city alternative

A short drive west of Calgary, the community of Bragg Creek is an oasis for homebuyers looking for a convenient escape from the big city.

And the good news is the tranquil hamlet of less than 500 residents, situated in the shadows of the Rockies, has something for everyone, whether they're empty-nesters or first-time buyers.

"It's not really urban living; it's rural-urban," explained Lee Edwards, REALTOR® with MaxWell Canyon Creek, who has worked out of Bragg Creek since 1986.

Brokerage believes in its community commitments

Whether helping children around the world access clean drinking water, joining Calgarians in planting trees or helping you find or sell a home, Jeff Neustaedter & Associates is ready to show the power of teamwork.

Neustaedter began selling homes in 2000, later joining Re/Max House of Real Estate and launching his own business. He established a seven-strong REALTOR® team including his brother and original partner, Ray Neustaedter, along with Rod Burriss, Mark Lockhart, Candace Randall, Mark Lofgren and Randy Merkley.