With the extreme benefits that come with owning property, many desire to buy homes. But, those who are not rolling in money will most likely need to take out a mortgage, and as you likely know, mortgages can be costly. To pay off a loan in an efficient manner, there are various tips and tricks that can be followed. These can be broken down into seven primary groups: keeping a stable cashflow, using shorter amortization times, buying a smaller house, accelerated payments, shopping for good mortgages, buying a house that is a good long term decision, and making prepayments.

Having a stable cashflow is critical, as without it your payments may not be made on time. An unexpected dip in income or an emergency expense can send you scrambling, often having to make the choice between paying your mortgage bank a late fee plus overdue interest or taking out a payday loan and paying the high premiums associated with that form of debt.

Interest rates have a significant impact on cost of property over time. Because of this, cutting several years off of the time that it will take to pay the mortgage will significantly reduce the cost of the home in the long term, generally by thousands of dollars.

Buying a smaller house may also help with cutting costs. Space that is not going to be used is just costing you money. Adding these savings not only saves on the principle, but also saves on the cost of interest.

Another way to fight interest rates is through accelerated payments such as those offered by RBC Royal Bank. By paying twice a month rather than once per month, interest cannot build as fast, since interest is based on the principle, which is reducing more quickly. Every bank’s policies are different, so check with your lender for details.

While it may seem obvious, some mortgages are better than others. For a significant purchase such as a house, spending slightly longer to find a good mortgage will be worth it in the long term.

In addition to considering the cost of the mortgage, also consider whether the product is something that should be purchased in the first place. If you do not live in a house for a significant amount of time, you are likely going to be losing money on your mortgage.

Finally, make prepayments on your mortgage. Spending more than you are required to spend now will save you significant money in interest, and will get the mortgage paid sooner.

Following the above six tips will allow any homeowner to knock both time and money off of a mortgage, allowing money to be saved for other needs and wants.