Here are the numbers:
Paying 3.99% monthly on a mortgage of $160,957 (principal, CMHC insurance, HST on said insurance) = $845.79. Paying 2.3% on the same mortgage = $705.10.
Once the paperwork is back with the accurate downpayment amount what I'm planning on selecting is the variable rate mortgage, but make my payments as if I had signed up for the fixed rate. If the variable rate hovers around 2.3% for even just a year I will have paid down an "extra" $1,688.28 on my principle. If I continue this throughout the mortgage I'll reduce the amortization period by about 6 years. I'll also be selecting bi-weekly payments, reducing the length of the mortgage by another 2-3 years.