How to Save on Interest
Interest is the largest cost most buyers never actually see broken out — it's just baked into "the payment." Small decisions upfront change that number by tens of thousands of dollars.
Increase your down payment where you can
Anything below 20% down requires mortgage default insurance (CMHC or equivalent), which adds a premium directly onto your mortgage principal — meaning you pay interest on the insurance premium itself for the life of the loan. Getting to 20% down, even a year later than you planned, avoids this entirely.
Shorten your amortization if your budget allows
A 25-year amortization instead of 30 years means higher monthly payments but dramatically less interest paid overall. Even shaving off five years can save well into five figures over the life of the mortgage.
Make bi-weekly accelerated payments
Instead of paying monthly, an accelerated bi-weekly schedule effectively adds one extra full payment per year without feeling like a bigger stretch month to month. This alone can shave years off a mortgage.
Shop your rate — don't just take your bank's first offer
Banks rarely lead with their best rate. A mortgage broker can compare multiple lenders at once, and even a 0.1–0.2% difference is meaningful on a mortgage-sized loan. This is a five-minute conversation that can save thousands.
Improve your credit score before you apply, not after
See the credit score page — this is the single biggest lever most buyers ignore until it's too late to fix before their rate is locked in.
Make lump-sum prepayments when you can
Most mortgages allow prepayment privileges (commonly 10–20% of the original principal per year with no penalty). Even a modest annual lump sum reduces the principal you're paying interest on for the rest of the term.
Disclaimer: This is general information, not credit or financial advice specific to your situation. For a personalized assessment, talk to a mortgage broker or your bank before making financial decisions.
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