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Property Investment Tips: Increasing Your Equity

There are several ways to increase the equity in your investment property.

You can also utilize strategies to pay down your mortgage faster to increase your equity and overall net worth.

Increased Payments

When you fully understand the cash flow of a property, you may elect to forgo some of the positive cash flow in favour of increasing your mortgage payment. Most mortgage lenders will allow you to increase your mortgage payment up to double the minimum monthly payment. This increase in payment helps to pay down the principal balance, increase equity and reduce the interest paid on your mortgage over time.

Click here to view how to calculate the investment cash flow.

Accelerated Payments

Changing your mortgage payments from monthly to accelerated weekly or bi-weekly payments can help you increase your equity by paying down your mortgage balance faster. This not only saves you interest but can reduce the life of your mortgage by up to a year or more!


Additionally, your mortgage lender may allow you to pay up to 20% of the original principal balance of your mortgage each year. Using tax savings or refunds, quarterly/annual bonuses or monthly/annual cash flows from your investment property, you can reduce the balance of your mortgage, increasing your equity and net worth.

Contact me today to discuss your mortgage options.