A high mortgage payment can weigh you down and leave little money at the end of the month for other expenses. Here are some ways to lower your payment and help your money go further if you have a mortgage or are planning to get one.
Find the best interest rate
Do your homework and find the best interest rate and mortgage that fits your needs. Talk to us for help.
If you already have a mortgage, review your interest rate. If interest rates are lower now than when you signed your current agreement, consider refinancingPop-up your mortgage. A lower interest rate could reduce your ongoing payment. Just be aware of any prepayment chargesPop-up. Do the math and consider whether you come out ahead in the end.
Extend your mortgage term
Use the maximum amortization you’re allowed at the time you get your mortgage. This will lower your regular payments. But, the longer the amortization, the longer it'll take you to pay off your mortgage.
Avoid mortgage default insurance
You could avoid having to buy mortgage default insuranceOpens a popup. if your down payment is 20% or more of the home's appraised value. A larger down payment will also save you interest over the life of your mortgage.
Renew your mortgage
Find opportunities to lower your regular payments when you renew your mortgage. Negotiate a lower interest rate to save money over the term of the agreement. A different mortgage type (open, closed, fixed or variable) or CIBC product could also save you cash. You can also make a one-time payment directly to the principal without paying more charges; if you reduce your mortgage principal, you can lower your regular payments, too.
Downsize your home
Downsizing or moving to a less expensive home can help save you money. There may be transaction costs, such as realtor commission, land transfer tax, legal and other professional fees, moving costs and mortgage prepayment charges. But in the long run, you could end up with lower carrying costs, such as mortgage payments and realty taxes.