CIBC Mortgage Rates
Commonly known by the CIBC moniker, the Canadian Imperial Bank of Commerce was born out of the merger of the Imperial Bank of Canada and the Canadian Bank of Commerce in 1961. This was the largest merger of any chartered banks in the history of the country. Today the bank offers personal and small business banking, capital markets, commercial banking, and wealth management in both Canada and the US markets. CIBC operates globally in the US, UK, Asia, and the Caribbean. CIBC is estimated to have over 11 million customers.
CIBC Fixed-Rate Mortgages
A fixed rate mortgage involves a stable interest rate that does not fluctuate over the course of the loan’s term. Below are CIBC’s current posted rates:
- 1 year fixed mortgage rate - 2.79%
- 2 year fixed mortgage rate - 2.89%
- 3 year fixed mortgage rate - 3.49%
- 4 year fixed mortgage rate - 4.24%
- 5 year fixed mortgage rate - 4.79%
- 7 year fixed mortgage rate - 5.6%
- 10 year fixed mortgage rate - 6.09%
CIBC Variable-Rate Mortgages
A variable rate mortgage involves an interest rate that fluctuates based on a certain benchmark, usually a prime rate. Below are CIBC’s current posted rates:
- 3 year variable mortgage rate - 2.45%
- 5 year variable mortgage rate - 2.45%
Note that the CIBC Prime Rate is currently set at 2.45%.
CIBC Mortgage Break Penalty
If your mortgage is closed, prepayment penalties will likely apply if you attempt to pay part or all of the balance early. Mortgages are a contractual obligation and if you make a payment early, you’re violating the contract which is why you could incur a prepayment penalty. Every bank’s prepayment penalty policy and fee varies.
You can calculate what your prepayment penalty will be using CIBC’s Mortgage Prepayment Charge Calculator. Even though you might incur a fee, it could still be worth the penalty which is why it’s important to understand the cost.
How to Get a CIBC Mortgage Pre-Approval
CIBC offers a mortgage pre-approval certificate to potential borrowers. If you are pre-approved for a mortgage with CIBC, you’ll receive an amount and interest rate that is valid for up to 120 days. The only reason a pre-approval would fall through is if your financial situation changed significantly. For example, you lost your job or had a significant, unexpected expense.
Unfortunately, CIBC doesn’t provide a list of criteria you need to meet for pre-approval. They suggest meeting with them to determine what you can afford and what mortgage you’re eligible for. In general, you will usually need to have good credit, be a resident or citizen of Canada, have stable income and be the age of majority for mortgage approval with a big bank.
During the pre-approval process, most lenders will request information and documentation. This could include personal information, financial details, verification of funds or income, government issued identification and so on. If you’re ready to apply for mortgage pre-approval, you can book a meeting with a CIBC representative online.
How to Get a CIBC Mortgage
The CIBC mortgage application process is similar to the pre-approval process. They don’t provide a lot of insight into what is required for mortgage approval, unfortunately. However, if you’re ready to buy a home and want to apply for a CIBC mortgage, book an appointment with a CIBC representative online.
Using CIBC Mortgage Specialist
The benefit of using financing from a big bank like CIBC is access to their large customer service network. Based on CIBC’s website, most individuals looking to apply for mortgage pre-approval, or a full mortgage will be required to work with a mortgage specialist. Individuals that enjoy a personal touch will benefit from this, but not everyone enjoys working with a representative. Having an internal contact can be helpful, especially since mortgages are a long-term obligation.
- Big bank. CIBC is one of the five largest banks in Canada. Getting approved with them can be validating and confirm that you made a good financial decision. In addition, you’ll have access to their customer service network and other products and services.
- Competitive rates. The standard rates are competitive with CIBC. They also have special rate offers occasionally.
- Pre-approval opportunities. Mortgage pre-approval comes with a ton of benefits. CIBC allows you to get pre-approved and the offer is valid for up to 120 days.
- Less intimate. Because CIBC is so big, the level of service won’t be as intimate as if you had gone to a smaller lender.
- Harder to qualify. CIBC has much stricter criteria for qualification compared to smaller, alternative lenders. For example, they may not accept bad or no credit, or unstable income.
- New to Canada. You may not qualify for a mortgage with CIBC if you just emigrated to Canada.
What are the different kinds of rates?
Banks offer different kinds of rates for mortgages. All of Canada’s big banks usually offer three types of rates: inflated rates used for reference, contracts and penalties; rates they post online or advertise to customers as special or limited time offers; and rates they keep quiet about but are the best rates, normally these are negotiated.
Posted rates are the rates used to determine penalty fees. As a result, these rates are inflated to get banks more money. No one should be paying posted rates on a mortgage. They are used for reference and customers can negotiate or seek out better advertised rates from there.
Special Mortgage Rates
Special mortgage rates are the rates normally offered online or in advertisements as a limited time deal. They are not limited time deals or special in any way. They are lower than posted rates and generally what mortgage specialists can outright offer clients. However, smaller lenders and credit unions generally offer more competitive rates than the big banks’ special rates. Seeking out comparable loans and their rates can put you in a position to ask for even better rates than what big banks offer you as “special”.
Discretionary rates are the good deals big banks can offer, but won’t openly tell clients about or advertise publicly. Banks will offer these rates to preferred clients, because they don’t want to lose their business. Ultimately, banks want business and any client, preferred or not, can negotiate rates down into the discretionary category.