Key Takeaways
- CIBC is one of Canada’s largest and oldest banks, offering a wide range of mortgage products and services.
- CIBC has competitive rates and flexible features, such as prepayment options, portability, and cash back incentives.
- CIBC has a large network of branches and mobile mortgage advisors, as well as online and phone services, to help you with your mortgage needs.
- CIBC has some special CIBC Mortgage programs for newcomers to Canada, self-employed borrowers, and investors.
- CIBC has mixed customer reviews, with some complaints about service quality and fees.
Introduction
If you are looking for a mortgage lender in Canada, you might consider CIBC, one of the country’s Big 5 banks. CIBC has been in business since 1867 and has over 10 million customers worldwide. CIBC offers a variety of mortgage products, from fixed and variable rates to more niche options, such as investment property mortgages and newcomer mortgages. CIBC also has a large presence across Canada, with over 1,000 branches and mobile mortgage advisors. In this article, we will review CIBC’s mortgage rates, features, eligibility, and customer service, and compare them to other lenders in the market. We will also give you some tips on how to get the best deal on your CIBC mortgage.
CIBC Mortgage Rates
One of the most important factors to consider when choosing a mortgage lender is the interest rate. The interest rate determines how much you will pay in interest over the life of your mortgage, and how much you can afford to borrow. CIBC offers both fixed and variable-rate mortgages, as well as some hybrid options. Fixed-rate mortgages have a constant interest rate for the entire term of the mortgage, which can give you peace of mind and stability. Variable-rate mortgages have an interest rate that changes with the prime rate, which can save you money if the prime rate goes down, but also increase your risk if the prime rate goes up.
Also Read: CIBC Investor Edge Broker Fees & Review: February 2023
CIBC posts its mortgage rates online, both the posted rates and the special rates. The posted rates are the standard rates that CIBC offers to its customers, but they are usually higher than the rates you can actually get. The special rates are the discounted rates that CIBC offers to qualified customers, based on their credit score, income, down payment, and other factors. The special rates are closer to the market rates, and they are often negotiable. You can also get lower rates if you bundle your mortgage with other CIBC products, such as a chequing account or a credit card.
Here are some of the current CIBC mortgage rates, as of December 26, 2023:
| Term | Posted Rate | Special Rate |
|---|---|---|
| 1-year fixed | 3.09% | 2.79% |
| 2-year fixed | 3.19% | 2.94% |
| 3-year fixed | 3.99% | 3.24% |
| 4-year fixed | 4.09% | 3.34% |
| 5-year fixed | 4.79% | 3.59% |
| 7-year fixed | 5.35% | 4.49% |
| 10-year fixed | 6.75% | 5.49% |
| 5-year variable | Prime – 0.25% | Prime – 0.65% |
As you can see, CIBC’s mortgage rates are competitive, but not the lowest in the market. You can find lower rates from other lenders, such as online brokers, credit unions, or alternative lenders. However, CIBC’s rates are still lower than some of the other big banks, such as RBC, TD, and BMO.
CIBC Mortgage Features
Another factor to consider when choosing a mortgage lender is the features and benefits that they offer. CIBC has some attractive features and benefits for its mortgage customers, such as:
- Prepayment options: You can make extra payments on your CIBC mortgage without penalty, up to 10% of the original principal amount per year. You can also increase your regular payment amount by up to 100% once per year. This can help you pay off your mortgage faster and save on interest.
- Portability: You can transfer your CIBC mortgage to another property if you move, without paying any fees or penalties. This can save you the hassle and cost of breaking your mortgage and getting a new one. However, you will have to meet the eligibility and approval criteria for the new property and mortgage amount.
- Cash back: You can get up to 5% cash back on your CIBC mortgage, depending on the term and amount of your mortgage. You can use the cash back for any purpose, such as paying for closing costs, furnishing your home, or investing. However, you will have to pay a higher interest rate to get the cash back, and you will have to repay the cash back amount if you break your mortgage before the end of the term.
- Skip a payment: You can skip one mortgage payment per year, without penalty, as long as you have made at least one extra payment in the past 12 months. This can give you some flexibility and relief in case of an emergency or a temporary cash flow problem. However, skipping a payment will increase your interest cost and extend your amortization period.
- Mortgage switch: You can switch your mortgage from another lender to CIBC, without paying any fees or penalties. CIBC will cover the appraisal fee, the legal fee, and the discharge fee, up to $3,000. This can help you take advantage of CIBC’s lower rates and features, and save on switching costs.
CIBC Mortgage Eligibility
To qualify for a CIBC mortgage, you will have to meet some eligibility criteria, such as:
- Credit score: You will need a good credit score to get approved for a CIBC mortgage, and to get the best rates and terms. CIBC does not disclose the minimum credit score required, but it is likely to be around 650 or higher. If you have a lower credit score, you may still qualify for a CIBC mortgage, but you will have to pay a higher interest rate and a mortgage default insurance premium.
- Income: You will need a stable and sufficient income to afford your mortgage payments and other debt obligations. CIBC will verify your income using your pay stubs, tax returns, bank statements, and other documents. CIBC will also use your income to calculate your debt-to-income ratio, which is the percentage of your income that goes towards paying your debts. CIBC does not disclose the maximum debt-to-income ratio allowed, but it is likely to be around 40% or lower. If you have a higher debt-to-income ratio, you may still qualify for a CIBC mortgage, but you will have to pay a higher interest rate and a mortgage default insurance premium.
- Down payment: You will need a minimum down payment of 5% of the purchase price of the property to get a CIBC mortgage. However, if your down payment is less than 20%, you will have to pay a mortgage default insurance premium, which can add to your mortgage cost. The mortgage default insurance premium is a percentage of your mortgage amount, and it depends on your down payment, credit score, and amortization period. The higher your down payment, the lower your mortgage default insurance premium. You can use the mortgage calculator to estimate your mortgage default insurance premium.
CIBC Mortgage Programs
CIBC has some special mortgage programs for certain types of borrowers, such as:
- Newcomer mortgage: If you are a newcomer to Canada, you can get a CIBC mortgage with a down payment of as low as 5%, even if you have no Canadian credit history. You will have to provide proof of your immigration status, such as a permanent resident card, a work permit, or a study permit. You will also have to provide proof of your income, such as an employment letter, a pay stub, or a bank statement. You can get a fixed or variable rate mortgage, with a term of up to 10 years, and an amortization period of up to 25 years.
- Self-employed mortgage: If you are self-employed, you can get a CIBC mortgage with a down payment of as low as 10%, even if you have a low or variable income. You will have to provide proof of your self-employment, such as a business license, a GST/HST number, or a T1 General tax return. You will also have to provide proof of your income, such as a notice of assessment, a financial statement, or a bank statement. You can get a fixed or variable rate mortgage, with a term of up to 10 years, and an amortization period of up to 25 years.
- Investment property mortgage: If you want to buy a property for investment purposes, you can get a CIBC mortgage with a down payment of as low as 20%. You will have to provide proof of your income, such as a pay stub, a tax return, or a bank statement. You will also have to provide proof of the rental income potential of the property, such as a lease agreement, a market rent appraisal, or a rent roll. You can get a fixed or variable rate mortgage, with a term of up to 10 years, and an amortization period of up to 25 years.
CIBC Mortgage Customer Service
Another factor to consider when choosing a mortgage lender is the customer service and support that they provide. CIBC has a large network of branches and mobile mortgage advisors across Canada, where you can get personalized advice and guidance on your mortgage needs. You can also apply for a CIBC mortgage online, by phone, or by email, and get a pre-approval in as little as 15 minutes. CIBC also has a dedicated mortgage customer service line, where you can get answers to your questions, make changes to your mortgage, or request a renewal or a switch.
However, CIBC’s customer service is not flawless. CIBC has received some negative reviews and complaints from its mortgage customers, mainly about the service quality, the fees, and the penalties. Some of the common issues that customers have reported are:
- Poor communication and follow-up from the mortgage advisors and representatives
- Delays and errors in the mortgage approval and closing process
- High fees and charges for mortgage administration, renewal, and discharge
- Strict and costly penalties for breaking or switching the mortgage before the end of the term
- Difficulty and inconvenience in accessing and managing the mortgage account online
You can read some of the CIBC mortgage reviews and complaints on websites such as [Trustpilot], [Consumer Affairs], and [Better Business Bureau].
CIBC Mortgage Review: Conclusion
CIBC is a big bank with a long history and a large customer base in Canada. CIBC offers a wide range of mortgage products and services, with competitive rates and flexible features. CIBC also has a strong presence and accessibility across the country, with branches, mobile advisors, and online and phone services. CIBC has some special mortgage programs for newcomers, self-employed borrowers, and investors, which can help them achieve their homeownership goals.
However, CIBC is not the perfect mortgage lender for everyone. CIBC has some drawbacks and limitations, such as high fees and penalties, strict eligibility criteria, and mixed customer service. CIBC’s mortgage rates are not the lowest in the market, and you may be able to find better deals from other lenders, such as online brokers, credit unions, or alternative lenders. CIBC’s mortgage features and benefits are not unique, and you may be able to find similar or better options from other lenders, such as cash back, skip a payment, or portability.
Therefore, before you decide to get a CIBC mortgage, you should do your research and compare CIBC’s rates, features, eligibility, and customer service to other lenders in the market. You should also shop around and negotiate with different lenders, to get the best mortgage deal for your situation. You can use our [mortgage comparison tool] to find and compare the best mortgage rates and terms from various lenders in Canada.
We hope this CIBC mortgage review has been helpful and informative for you and your Hustlers. If you have any questions or feedback, please feel free to contact us. Thank you for reading and happy hustling!