Pay off your mortgage faster
A mortgage is a big commitment. Most mortgages are paid over 25 years, but you can pay them off faster. Reducing the number of years you make mortgage payments can add up to big savings.
There are several ways to pay down your mortgage and get out of debt faster without paying prepayment charges.1
Increaseyourpaymentamount
You can increase your payment amount up to 100% of the original regular payment at any time over the mortgage term. If you increase your payments, you could pay down the principal faster.
Example: If you raise your monthly payment by $170 from $830 to $1,000, you could save almost $48,000 in interest over theamortization periodOpens a popup.. You could pay off your mortgage about 8 years sooner.
Increase your payment frequency
You can make your regular mortgage payments more often. This saves you money in interest charges over the mortgage term by paying down the principalOpens a popup. faster.
Example: If you make accelerated biweekly payments of $415 instead of monthly payments of $830, you could save almost $27,000 in interest over the amortization period. You could pay off your mortgage about 4.5 years sooner.
Make an annual prepayment of 10%, 15% or 20% depending on your product
You can make lump-sum payments to pay down your mortgage faster. To avoid prepayment charges, your payment cannot exceed your allowable prepayment privilege. A lump-sum payment is applied directly to the principal if there's no interest owing. This saves you money over the life of your mortgage.
Example: If you make a $1,000 lump-sum payment annually, you could save almost $28,350 in interest over the amortization period. You could pay off your mortgage about 4 years sooner.
Prepay at renewal
You can pay as much as possible at renewal. All CIBC mortgages become open at the end of the mortgage term. This means you can pay as much as you want on your mortgage before you renew.
Example: If you choose a 5-year, fixed-rate term and make a $10,000 lump-sum payment every time your mortgage comes up for renewal, you'll save about $37,481 in interest over your amortization period. You could pay off your mortgage about 6 years sooner.
