Compare CIBC Mortgage Rates in Canada
Whether you’re considering a fixed or variable mortgage, CompareMortgages.ca provides up-to-date CIBC rates alongside offerings from other major Canadian lenders.
Our platform ensures you have access to the most competitive mortgage options that suit your financial goals and budget. Why limit yourself to a single lender when we can help you compare multiple options quickly and easily?
Key Highlights
- CIBC offers specialized products like the Home Power Plan and Newcomer Program.
- Short-term mortgage relief options are available for borrowers struggling with payments temporarily.
- Prepayment privileges allow borrowers to pay off up to 20% of the original loan amount.
Compare CIBC Mortgage Rates
Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and banks, including TD, RBC, CIBC and Scotiabank. We do the research to guarantee you the lowest possible rates upfront every time.
Compare Big Bank Rates
Securing Canada’s most favourable mortgage or loan terms starts with comparing rates from big banks. Interest rates and promotional offers can vary significantly, potentially leading to substantial savings over the life of your loan.
Take Action Today:
- Explore Multiple Options: Don’t settle for the first offer. Research rates from various top lenders and banks across Canada to identify the most competitive options.
- Consider Your Financial Needs: Assess your budget, financial goals, and risk tolerance to determine the loan term and type that best suits you.
- Make an Informed Decision: With comprehensive rate comparisons, make a confident choice that matches your financial needs.
Comparing rates can translate to significant savings and a more favourable financial future.
CIBC Overview & Stock Information
Established in 1867, the Canadian Bank of Commerce merged in 1961 with the Imperial Bank of Canada (established in 1873) to form The Canadian Imperial Bank of Commerce (CIBC). CIBC is an international financial institution headquartered in Toronto, Canada.
Today, it is the fifth-largest of Canada’s “Big 6” banks, alongside TD, RBC, BMO, Scotiabank and National Bank. CIBC caters to personal and business customers in Canada and abroad, and Costco members through its CIBC Mastercard partnership.
Stock information
What to Know About CIBC Mortgage Posted Rates
CIBC’s posted rates are used to calculate prepayment penalties. Borrowers are typically offered a discount from the posted rate when obtaining a mortgage.
CIBC’s advertised rates may differ from those offered through mobile mortgage advisors or in-branch. Special offers, promotional rates, or alternative channel discounts often offer lower pricing than advertised. The actual rate you will be offered depends on personal factors like your mortgage amount, loan-to-value (LTV) ratio, property type, risk profile, and credit profile.
CIBC also provides limited-time cashback offers if you meet the eligibility criteria. However, these incentives may come with higher rates or require repayment of the cashback if you break your mortgage before the end of the term.
CIBC Mortgage Products
Fixed-rate mortgages at CIBC allow you to know exactly how much your mortgage payment will be over the term, regardless of changes to interest rates. CIBC offers fixed mortgages with 6-month, 1, 2, 3, 4, 5, 7, and 10-year terms. Each mortgage payment will remain the same over the mortgage term and is made up of a principal and interest component. You must renegotiate a new interest rate at the end of each term.
Variable-rate mortgages (VRM) at CIBC offer interest rates based on the CIBC Prime Rate, which may increase or decrease over the mortgage term based on changes to the BoC policy rate. You can choose a 3 or 5-year variable term at CIBC.
Variable mortgages at CIBC have fixed payments that won’t increase over your mortgage term, regardless of changes to interest rates. Each mortgage payment will remain the same over the term; however, the proportion of the payment that goes toward the principal and interest will fluctuate based on changes to the CIBC Prime Rate.
When the prime rate increases, more of the mortgage payment goes toward the interest and less toward the principal, which could leave you negatively amortized. When the prime rate decreases, more of the mortgage payment goes toward the principal and less toward the interest, helping you pay off your mortgage faster.
Besides the typical core mortgage products offered by most banks, CIBC also provides a variety of other mortgage products, including:
CIBC Convertible Mortgage
This short-term mortgage (6 months) can be converted to a long-term mortgage at any time without a prepayment penalty. This allows you to take advantage of lower interest rates should they fall over the term.
CIBC Home Power Plan
This combines a mortgage with a home equity line of credit (HELOC) to provide ongoing access to funds using the equity built in your home. You can borrow up to 80% of your home’s value (less your mortgage balance).
The minimum mortgage amount is $10,000 unless you transfer your mortgage from another financial institution. As you pay off the mortgage, the credit line amount increases, which can be utilized to consolidate debt, fund renovations, or make other large purchases.
CIBC Newcomer Programs
The CIBC Newcomer to Canada Program Mortgage is designed for individuals with a limited credit history in Canada but sufficient Canadian income to afford mortgage payments.
The CIBC Newcomer to Canada PLUS Program Mortgage is available for individuals new to Canada or Canadian citizens who have returned to Canada after living abroad. This program also extends to applicants working towards re-establishing their careers in Canada, even if they have limited or no credit history.
The CIBC Foreign Worker Program Mortgage is specifically tailored to those with a valid work permit, and individuals may still qualify for this program even without a Canadian credit history.
Key Features of CIBC Mortgages
CIBC offers mortgage relief options to help you get your mortgage back on track if you struggle to make payments. Depending on your situation, you may qualify for some of the short-term options they offer.
- Reduce mortgage payments: This option is available if you make accelerated payments. You may be able to reduce payments and revert to your original amortization schedule. However, you will pay more interest over time and take longer to pay off the mortgage.
- Pay only interest temporarily: This option allows you to pay only the interest for a short time. However, your mortgage payments will increase after the temporary relief period due to the missed principal payments.
- Defer mortgage payments: If you qualify, this option allows you to defer payments for up to 4 months. However, your mortgage payments will increase after the relief period ends due to missed payments.
What Determines CIBC’s Mortgage Rates?
Lenders like CIBC set their mortgage rates based on the Bank of Canada (BoC) policy rate or bond yields. The state of the economy in Canada and globally, inflation, and employment can all impact the direction of bond yields and the BoC’s monetary policy decisions, impacting mortgage rates.
Variable mortgage rates are directly tied to the Bank of Canada policy rate. When the BoC changes the policy rate up to 8 times a year, lenders adjust their prime rates accordingly. Most lenders set the prime rate at 2.20% higher than the policy rate.
Fixed mortgage rates are directly tied to the movement of bond yields with a corresponding maturity. For example, 5-year fixed rates follow the direction of 5-year bond yields. Bond yields are indirectly influenced by what the market thinks the BoC will adjust the policy rate to in the future. Depending on the lender, fixed rates are typically priced 1% to 2% higher than the corresponding bond yield. Other factors, such as your credit score, loan-to-value (LTV) ratio, down payment, debt service ratios and more, can impact the rates or discounts CIBC offers you.
CIBC Mortgage Payment Increases
In the mortgage industry, a prepayment is when a borrower pays off a portion or the entire mortgage early, either with a lump sum payment or by raising their regular monthly payments. Your annual mortgage prepayment limit will vary from one major bank to another. If you want the freedom to pay off your mortgage early, you will want to shop around for a mortgage with favourable prepayment terms.
Whether you have a CIBC variable-rate mortgage or a CIBC fixed-rate mortgage, flexible payment options allow you to pay off your mortgage faster. If you currently make monthly payments, you may be able to switch to an accelerated weekly or biweekly payment schedule to help you pay down your mortgage faster.
You can increase your regular payment amount as often as you like, as long as it doesn’t exceed 100% of your original principal and interest payment. This essentially doubles your regular mortgage payment amount. For example, if you currently pay $800 biweekly toward your mortgage, you can increase your payment up to $1,600.
CIBC Annual Mortgage Prepayment
If you have a fixed closed mortgage and take advantage of yearly prepayment privileges, you can pay off up to 10% of the loan balance annually without penalty. You can prepay up to 20% of your original loan balance annually without penalty if you have a Variable Flex Mortgage.
If you have an open mortgage, you can make as many lump-sum payments as you like each year without a prepayment penalty.
Since the entire lump sum will be applied to the principal balance of the mortgage, you will pay significantly less interest throughout the mortgage’s lifetime and be able to pay it off much more quickly.
Important: You will incur a penalty if you choose to prepay your fixed closed mortgage by more than 10% or your variable flex mortgage by more than 20% of the mortgage principal per year.
| Canadian Bank Closed Mortgage | Prepayment Amounts |
|---|---|
| RBC | 10% |
| National Bank | 10% |
| CIBC | 10% |
| TD Bank | 15% |
| Scotiabank | 15% |
| BMO | 20% |
Frequently Asked Questions
Can I negotiate my mortgage rate with CIBC?
You should always negotiate your mortgage rate, as the first offer is rarely their best. However, CIBC may offer rate discounts that will vary based on your credit profile, LTV, down payment, and debt service ratios.
What is the difference between fixed and variable mortgage rates?
Fixed rates provide predictable payments that remain constant throughout the mortgage term. Variable rates fluctuate with the CIBC mortgage prime rate, but your payment won’t. If rates decrease, less of your payments go toward interest and more toward principal, helping you pay off your mortgage faster.
If rates rise, more of your payments will go toward interest and less to principal, which could require you to increase your payment amount, prepay, or convert your mortgage to a fixed term should rates increase to the point your regular payment no longer covers the full interest amount (negative amortization).
Does CIBC offer a HELOC?
The CIBC Home Power Plan lets you combine a fixed or variable mortgage with a HELOC in one account, so you can access equity without reapplying for credit as your mortgage is paid down.
Final Thoughts
CIBC offers a variety of mortgages to suit many borrowers’ needs. While CIBC may be a great option, it is always advisable to shop around for the best rate and terms whenever borrowers are in the market for a new mortgage, renewing, or refinancing.
Ready to find the best mortgage rate for your needs? Use Compare Mortgages to explore CIBC offerings alongside those of other top Canadian lenders.