CIBC Prime Rate
CIBC’s Prime Rate provides the basis for their various loans and mortgages. Their current prime rate is 6.7%. Prime rates change when the Bank of Canada raises or lowers its overnight rate. The CIBC bases their mortgages on the prime rate, but because your home is collateral for the loan, the rate tends to be lower than the prime. However, we should point out that CIBC mortgage rates are closer to the prime than other leading Canadian banks.
CIBC Variable Mortgage Rates
If you have a variable-rate mortgage, your interest rate changes based on the specified financial index in your mortgage. This is often the CIBC Prime Rate. Your mortgage agreement explains how changing interest rates impact your payments. Often, your regular payments stay the same. However, when interest rates decrease, more of your payment covers the principal, while more goes towards interest if they increase.
CIBC Fixed Mortgage Rates
If you have a fixed-rate mortgage, your interest rate and monthly payments stay the same for the full term of the mortgage agreement. However, once the term ends, the latest interest rates apply, changing how much you pay each month..
CIBC Mortgage Rates as Per Term
CIBC MORTGAGE RATES
CITADEL MORTGAGES RATES
CIBC 5-Year Fixed and Variable Rate History
Here is a brief history of the past fixed and variable rates for CIBC:
- Year: 2020 Fixed: 2.97% Variable: 2.45%
- Year: 2021 Fixed: 2.37% Variable: 1.54%
- Year: 2022 Fixed: 4.42% Variable: 3.24%
CIBC Mortgage Application Checklist
When applying for a CIBC mortgage, they require the following documents:
- Confirmation of your down payment
- Current employment and amount of income
- Savings or investments statement from the last 90 days
- Copy of recent pay slips
- Evidence of recent pay deposited electronically
- T1 General and associated Notice of Assessment (NOA)
- A copy of the sale agreement in the case of a recent sale
- Withdrawal from RRSP through the Home Buyer’s Plan, if applicable
- Gift Letter, if applicable
- Previous employment (if required)
- Additional income sources (if any)
- A list of current assets and liabilities
- A copy of the real estate listing
- Bank account and transit number for payments
- A copy of the accepted purchase and sale agreement
- Your CIBC Pre-Approved Mortgage Certificate, if applicable
- The property’s full address, including legal description and postal code
- Property tax estimates, condo fees, and heating costs (usually available on the real estate listing)
- Well and septic certificates when purchasing a rural property
- Your real estate lawyer’s name, address, postal code, telephone, and fax number
CIBC Mortgage Features
CIBC is often criticized for not offering any payment breaks for its clients like other leading banks in Canada. And this really is a big deal. Most banks offer an annual missed payment option each year. However, they do provide the following other features:
- CIBC Mortgage Prepayment Allowance:
You can prepay up to 20% of your original mortgage balance each year without penalty. This is always worth taking advantage of as it allows you to pay down your mortgage more quickly while reducing how much interest you pay over the life of your mortgage. CIBC offers the highest prepayment you’ll find Canadian banks provide, which is a plus.
- CIBC Increase Your Mortgage Payment:
You can double your CIBC monthly mortgage payment, which goes towards your principal, reducing how much you pay in interest in the long term. You also pay your mortgage faster.
- CIBC Increase Your Payment Frequency:
You can choose weekly or bi-weekly payments instead of monthly payments. This reduces interest by paying down your principal faster.
- CIBC Property Tax Payments:
Most mortgages require you to pay your property taxes to your bank on top of your mortgage payments. Some types of mortgages don’t have this requirement, but CIBC will collect your taxes as a free service if you like. This makes life easier as you pay in small amounts over the year and don’t have to remember to make payments on your own.
- CIBC Mortgage Protection Insurance:
It’s worth considering CIBC mortgage protection to cover your mortgage payments in the event of death, disability, or long-term illness. The only thing is that it does increase your monthly mortgage payments. On the plus side, your premiums are set for the life of your mortgage. Unfortunately, CIBC also has a maximum coverage limit of $750,000, which doesn’t provide a total mortgage payoff if the balance owed is on a higher-priced home. Be sure to review the premiums and payout so you understand how much it will cost you each month and how much of your mortgage will be paid should the unthinkable happen.
CIBC Mortgages: How It Works
Mortgages are loans used specifically to purchase a home. As you pay down the loan, you build equity in your home. The equity is realized when you either sell your home or want to access cash via a home equity loan. Equity is the difference between what you owe on your mortgage and the value of your home.
Your mortgage has a “term” that determines how long the interest rates and conditions are in effect. This is usually five years but can be as short as a year or as long as 10. Each term comes with an interest rate, payment amount, and timeline, which are renegotiated and renewed when the period ends. Interest rates are based on CIBC’s current rates, which will impact how much your payments are each month.
The term is different from amortization. Amortization is the time it takes you to pay off your entire mortgage and all the interest the bank applies. It usually takes about 25 years to pay down a mortgage when you aren’t making any prepayments.
If you fail to make your payments over several months, the bank can “foreclose” on your mortgage and take your home to regain the money owed on the house.
How to Get a CIBC Mortgage Pre-Approval
You can start the CIBC mortgage pre-approval process online. Complete their online application form, and someone will contact you. Pre-approval tells you whether you qualify for a CIBC mortgage or not. If you are eligible, CIBC tells you how much they will lend you. Pre-approval also provides a locked-in interest rate until you either find your home or for 120 days, whichever comes first. Should interest rates decrease, you will be given the lowest rate.
CIBC is the result of Canada’s largest bank merger in history. It consisted of the Canadian Bank of Commerce, established in 1867, and the Imperial Bank of Canada, established in 1875. The merger took place on June 1, 1961. Later, CIBC entered into asset management with a stake in TAL Investment Counsel. However, the Canadian government blocked their plans to merge with TD bank in 1998.
This was followed by another failure when they attempted to merge with Manulife Financial in 2002. Talks fell apart when both parties realized they would not likely get approval from the government. Despite these mergers falling through, they did expand with the acquisition of Wood Gundy and Merrill Lynch Canada. Since 2010 CIBC has continued to expand with the acquisitions of multiple wealth management firms and has its sights set on expansion in the U.S.
A: No, CIBC tends to have much higher rates. For example, their five-year fixed rate was 6.49%, BMO was 5.09%, TD was 5.44%, and RBC was 5.69%.
A: You can apply online, via phone, or by appointment at your local branch or mobile bank advisor.
A: Considering CIBC is amongst the highest interest rates in Canada, it is worth trying to negotiate a better rate. You can reference similar mortgage products and features at other banks for leverage. Be sure to point out that they do not offer any break on payments.
A: Most mortgage-related questions are answered at their central number: 1-888-264-6843.
A: No, CIBC is the only big bank not offering a mortgage feature to pause your monthly mortgage payment. With its higher interest rates, it is not the best bank to consider, especially for first-time buyers.
A: In most cases, CIBC needs a credit score of at least 600 to qualify for a mortgage, but they often want your score to be even higher. This is particularly true if you are self-employed or have non-traditional sources of income such as commission, freelance work or owning your own business.
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Citadel Mortgages operates an information-based website that displays mortgage rates from its partners. While the company strives to provide the best possible rates, it cannot guarantee their accuracy at all times. Therefore, Citadel Mortgages accepts no liability for the precision of the information presented and is not accountable for any damages resulting from its use. Terms and conditions apply, and it is necessary to speak with a mortgage broker for further details. Please note that the rates displayed in this article are for article use only.
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