Pay less interest
on your debt

Unlike a traditional mortgage, you can pay down the debt in your Main Account as quickly as you want, which saves you interest. As a matter of fact, every dollar you deposit into your Main Account, such as your income, is applied directly to the principal of your debt. You can also make large, one-time payments without having to worry about pre-payment limits or penalties. You have the flexibility to pay down your debt as quickly as you want and in turn, pay less interest.

Let’s take a step back and look at your entire financial picture. Do you have debt other than your mortgage? For example, are you carrying a balance on a credit card? Maybe two? Do you have a car loan or another line of credit? Don’t worry, many Canadians answer “Yes” to these questions.

Now take a look at the interest you’re paying on those other sources of credit. For example, credit cards typically charge around 20%. Even unsecured lines of credit and car loans often have a relatively high interest rate. The interest charged on the Main Account, called the Base Rate, will most likely be lower than the rate you’re being charged on your other loans.

Having all your debt in one place not only makes it easier to keep track of, but it helps ensure your money is working hard toward debt repayment. For example, with multiple credit cards and loans, you may be spending too much on interest charges and service fees. Then there’s the need to manage multiple payment dates. If you miss one, you could be charged late fees.