Compare Simplii Financial Mortgage Rates in Canada
Simplii Financial, the digital banking division of the Canadian Imperial Bank of Commerce (CIBC), is a direct bank that was established in 2017. As of November 2021, it had amassed nearly 2 million customers. In this article, we examine the primary mortgage options and Simplii Financial interest rates provided by Simplii and assist you in determining how they compare to those of other leading banks in Canada.
Key Highlights
- Simplii Financial, a digital bank supported by CIBC, boasts a customer base of over 2 million Canadians.
- Currently, they offer a fixed Simplii mortgage rate of 6.59% for 5-year mortgages and 6.95% for variable mortgages.
- As a digital-based banking institution, it is owned and run by CIBC and does not have physical locations in Canada.
Compare Simplii Financial’s Mortgage Rates
Simplii Financial’s website presents a variety of mortgage rates for various terms and types of mortgages. Our team can assist you in comparing these rates to the top rates offered in Canada, potentially allowing you to save thousands of dollars throughout your Simplii mortgage. When evaluating rates from major lenders, seek out any special deals and compare rates from multiple lenders to find the most competitive rate.
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.
How to Compare Bank Rates from Big Banks
When applying for a Simplii mortgage, it’s crucial to compare rates from large lenders, such as the Big Five, with smaller lenders like Simplii Financial. While Simplii offers a variety of mortgages and rates, it’s always a good idea to check them against other options to ensure you get the best deal. One easy way to compare rates from major lenders like Simplii Financial is by visiting our rate comparison page.
Simplii Financial Overview & Stock Information
Simplii Financial is a digital banking division of CIBC. They offer a range of banking products and services under the Simplii Financial brand. However, these products and services are not available in Quebec. As a division of CIBC, Simplii Financial does not have its shares, but CIBC shares have been traded for around $50-75 CAD in the last year under the symbol CM.
Simplii Financial Prime Rate
As of June 8, 2023, Simplii Prime Rate is set at 6.95%. This rate is a foundation for various financial offerings, such as mortgages and credit lines. Typically, lenders like Simplii will adjust this rate with a positive or negative spread, depending on the level of risk associated with the borrower.
Simplii Financial 5-Year Fixed and Variable Rate History
Simplii Financial offers a 5-year fixed rate of 6.59% and a 5-year variable rate of 6.95%. Recently, these rates have fluctuated in line with those of other lenders. Due to the impact of COVID-19 and subsequent economic changes, Simplii Financial’s interest rates have mirrored the national trends of interest rate cuts and increases.
Simplii Financial Mortgage Products
Simplii Financial mortgage rate can be fixed and variable with a range of terms and rate options and a number of specialized mortgage products for new Canadians, Rural living loans, and HELOCs. Simplii Financial offers flexible payment options and competitive rates.
Fixed and variable rate mortgages
Simplii offers basic variable and fixed-rate mortgages with various term options.
Here’s a breakdown of their mortgages, with rates effective as of today.
| Fixed-Rate Term | Posted Rate |
|---|---|
| 2 year | 6.59% |
| 3 year | 6.54% |
| 4 year | 6.49% |
| 5 year | 6.59% |
| 7 year | 6.89% |
| 10 year | 6.89% |
| Variable-Rate Term | Posted Rate |
|---|---|
| 5 year | 6.95% |
Simplii Financial HELOC
A HELOC, or Home Equity Line of Credit, is a flexible credit option that allows you to borrow against the equity in your home. Unlike traditional loans, with a HELOC, you only pay interest on the funds that you use, similar to a credit card. Simplii offers this credit to assist with expenses such as home renovations, education costs, and debt consolidation. Additionally, Simplii provides free unlimited transactions and withdrawals, saving you money if you frequently use your HELOC for smaller expenses.
New Canadians Program
Simplii Financial offers a unique program catering to individuals who have recently immigrated to Canada and have been generating income for less than five years. To qualify for the program, applicants must have verifiable Canadian income and employment, as well as a 20% deposit and closing costs for their home. Additionally, they must be enrolled in the Simplii Newcomer or International Student Banking Offer program and have lived in Canada for less than five years.
In addition, you have one of the following:
- A permanent resident card
- Confirmation of permanent resident letter
- Verification of status document
Medical Professional
Simplii offers a unique mortgage opportunity specifically tailored to new medical or dental graduates who have aspirations of purchasing a home but have yet to reach their earning potential. The program’s primary goal is to empower applicants with the means to increase their income and make homeownership more attainable. To be eligible, applicants must have recently graduated from a medical or dental school and have been practicing as a doctor or dentist for a maximum of 3 years, which will need to be verified. Additionally, a 20% deposit on the home is required.
Resort Lending
The Simplii Resort Lending Program is tailored for individuals seeking financing for a residential resort community property. Eligibility for the program requires that you search for a property within a residential resort community that conforms to the resort community guidelines. To apply, you must provide evidence of Canadian income and employment, as well as a 20% down payment and closing expenses.
Agriculture
The Rural Lifestyle Program by Simplii is tailored for individuals seeking to purchase a home on spacious land. This program offers financing options for properties on plots ranging from 1 to 200 acres. To apply, applicants must provide evidence of their Canadian income and employment history, as well as a 20% down payment and closing expenses.
Simplii Financial Mortgage Payment Increases
Prepaying a Simplii mortgage entails a borrower making a payment towards their loan ahead of schedule, either through a one-time lump sum or by increasing their monthly payments. Every financial institution in Canada has varying allowances for how much can be prepaid annually. Simplii Financial offers a variety of prepayment options for their clients, which can potentially save them significant amounts of money throughout their mortgage. Simplii offers a range of methods to assist in paying off a mortgage sooner.
- Increase the amount of your regular Simplii mortgage payments each year by taking advantage of Simplii’s annual payment increase option, which is available based on your specific mortgage product.
- Simplii offers the option to elevate the pace of your Simplii mortgage payments, for example, from a monthly to a bi-weekly or weekly schedule. By doing so, you can decrease the total amount of interest accumulated throughout your loan.
- Simplii Financial enables you to make a one-time payment, known as a lump sum payment, up to the limit of your prepayment privilege, which varies based on the type and amount of loan you have. If no interest is due, this lump sum payment will be applied directly towards the principal of your Simplii mortgage, allowing you to pay it off faster and potentially saving you money in the long run by decreasing the overall interest you will pay due to the reduced principal.
- According to the bank, all Simplii mortgages are open for adjustments at the time of renewal. This allows the flexibility to pay as much or as little towards the mortgage as desired. For instance, if you opt for a 5-year fixed Simplii mortgage rate term and make a lump-sum payment of $10,000 each time the Simplii mortgage is up for renewal, you could save over $35,000 in interest over the entire mortgage period and become mortgage-free approximately 6 years earlier.
Simplii Financial Annual Mortgage Prepayment
Simplii Financial allows you to prepay your mortgage by up to 25% per year on selected options. This feature is available for fixed-rate closed mortgages with terms of 2 years or more, excluding Simplii’s Fundamental mortgage and the Auto 12 Plus (Convertible) mortgage. You can boost your regular payments by up to 25% of the initial payment amount for these mortgages. With variable-rate closed Simplii mortgages, you can increase your payments to any amount as long as the amortization period is not less than five years with Simplii.
Renewal Process with Big Banks
When it comes time to renew your mortgage with Simplii Financial, or any other large lender, you will typically receive a notice a few months prior to the expiration of your term, which will include the Simplii interest rate for your renewal. However, you can switch to another bank or mortgage provider once your term with Simplii Financial is up. If you decide to renew with another lender, it’s important to research and compare Simplii mortgage rates with others to ensure you’re getting the best deal.
Frequently Asked Questions
Here are the most frequently asked questions about Simplii Financial’s mortgage products and rates.
Are Simplii Financial mortgage rates lower than other big banks?
With Simplii Financial, homeowners have the option of a fixed or variable mortgage with 5-year terms at competitive interest rates – as low as 5.69% in some cases! Rates may even be negotiable depending on individual circumstances and whether they can get an unbeatable rate better than other lenders like National Bank and CIBC.
What are the benefits of choosing a smaller lender?
Simplii Financial is the perfect combination of fast banking and competitive rates. Their digital-first approach and CIBC backing make them a smart choice for customers seeking an easier, more modern way to manage money tasks – without sacrificing quality or paying exorbitant fees. Plus, their innovative brand model allows individuals access to reliable financial products at prices similar to what smaller lenders typically offer!
How do I get a mortgage with Simplii Financial?
Explore their offerings and website to ensure they are the right fit for you. Submit an electronic application via their mortgage page and provide important details such as income, employment history, or credit information that will determine if you’re eligible.
Final Thoughts
At Simplii Financial, they offer the convenience of a digital-first bank experience while being backed by the reputable CIBC. Though Simplii interest rates are competitive, it’s always wise to shop around for the best mortgage deal. At CM, we specialize in helping customers compare rates and providing direct lending options. If you’re currently a Simplii Financial customer and considering a change in lenders, please don’t hesitate to reach out to our team for assistance.