Interest rates determine how much you spend on interest in addition to the principal. Generally, the higher the rate, the more you pay over the length of your mortgage. So, it’s important to choose a mortgage with a rate that fits into your repayment plan.

Mortgages come in 2 interest rate categories:

• Fixed-rate mortgages lock your rate for an entire term. This makes it easy to track how much principal you pay back each month
• Interest rates on variable-rate mortgages can change at any time; your rate could be higher or lower, depending on the market. But lower interest rates mean you pay more on the principal and pay off your mortgage faster

  Take advantage of prepayment privileges

  Pay off your home quicker with mortgages that have prepayment privileges. Lenders offer open, closed and covertible mortgagesOpens a popup.. Open mortgages usually have higher interest rates than closed mortgages, but they’re more flexible because you can prepay open mortgages, in part or in full, without a prepayment charge.

  Shorten your amortization period

  The amortization period is the length of time it takes to pay off a mortgage, including interest. The shorter the amortization period, the less interest you pay over the life of the mortgage.

  Pay a big lump sum before you renew

  When it’s time to renew your mortgage, pay as much as possible. All CIBC mortgages are open at renewal, so you can pay as much as you want on your mortgage at this time.

  Choose accelerated weekly or accelerated biweekly payments

  If you switch to an accelerated weekly payment schedule, you’ll increase your mortgage payments from 12 to 52 payments annually — a payment every week instead of monthly, and one extra monthly payment every year.

  Increase your mortgage payment

  Increase the size of your regular mortgage payment to take a large chunk off your mortgage principal. Choose a higher payment amount when you arrange your mortgage, or at any time during the term. This lets you pay down the principal faster.

  Make annual lump-sum payments

  In addition to your regular mortgage payment, use your prepayment privilege to make a lump-sum payment. It’s applied directly to your outstanding principal if you don’t owe any interest.