Rounding your mortgage payment up to the next clean number is one of the simplest ways to pay off your mortgage faster. You pick a slightly higher payment, set it once, and forget about it. Because every extra dollar goes straight to principal, the savings compound quietly for years.
Here’s how the math works, how much different round-ups can save, and how to set it up without paying a penalty.
Why small extra amounts matter
Your regular payment is split between interest and principal. Early in a mortgage, most of it goes to interest. Any amount above your required payment goes entirely to principal, which lowers the balance that next month’s interest is calculated on. Over 20 or 25 years, that small head start snowballs.
The numbers: a $500,000 mortgage
Take a $500,000 mortgage at an illustrative 4.59% over 25 years. The required payment is about $2,792 a month. Here is what happens if you round it up:
Rounding up the payment
| Monthly payment | Extra per month | Paid off in | Interest saved |
|---|---|---|---|
| $2,792 (required) | — | 25.0 years | — |
| $2,800 | $8 | 24.9 years | $1,937 |
| $2,900 | $108 | 23.4 years | $25,504 |
| $3,000 | $208 | 22.0 years | $45,814 |
| $3,100 | $308 | 20.8 years | $63,520 |
Interest saved over the life of the mortgage
Balance: required payment vs. $3,000 a month
Another option: accelerated payments
Accelerated bi-weekly or weekly payments work on the same principle. With accelerated bi-weekly payments, you pay half of your monthly payment every two weeks. Because there are 26 bi-weekly periods in a year, you end up making the equivalent of 13 monthly payments instead of 12.
Same $500,000 example, approximated.
How to set it up
Three steps
Check your prepayment privilege
Most lenders allow payment increases of 10% to 20% a year without penalty. A round-up of a few hundred dollars usually fits easily.
Ask your lender to change the payment
Most lenders let you do it online or by phone. Ask whether you can lower it again later if you need to.
Keep it through renewals
When you renew, keep the higher payment even if the required amount drops. It’s a painless way to keep saving.
When rounding up may not be the priority
- You carry high-interest debt: paying off a credit card at 20% beats prepaying a mortgage at under 5%.
- You don’t have an emergency fund yet: build that first, because money in your mortgage isn’t easy to access.
- You have unused RRSP or TFSA room and a strong investing plan: compare the after-tax return with your mortgage rate.
Examples use illustrative rates and Canadian semi-annual compounding, and are rounded. They are not rate quotes or advice. Last reviewed September 2026.