Introduction to Canadian Imperial Bank of Commerce – CIBC
Canadian Imperial Bank of Commerce (CIBC) was formed in 1961 by merging the Canadian Bank of Commerce and the Imperial Bank of Canada. It is one of the Big Six Banks in Canada, with over $737 billion in assets as of April 2024.
CIBC offers a wide range of financial services, including retail and business banking, wealth management, and capital markets. The bank has over 1000 branches across Canada and serves over 11 million clients.
When it comes to mortgages, CIBC offers a variety of mortgage solutions, including:
- Fixed and variable rate mortgages
- Mortgages for newcomers to Canada
- Refinancing and renewal options
- Mortgages for rental/investment properties
- Mortgages for second homes/vacation properties
- Cashback mortgages
- Mortgage life and disability insurance
CIBC offers mortgages for 2024 to a range of borrowers, from first-time homebuyers to real estate investors. Keep reading to learn more.
CIBC Mortgage Rates
The interest rate you pay on your mortgage significantly impacts your overall costs. CIBC mortgage rates are influenced by several factors, including the Bank of Canada benchmark rate, market conditions, and borrower profiles.
CIBC Prime Rate
The CIBC Prime Rate is the benchmark interest rate used for variable-rate mortgages and other credit products. As of August 2024, it was 6.70%.
| Effective Date | CIBC Prime Rate |
| January 2019 | 3.95% |
| March 2020 | 2.45% |
| March 2022 | 2.70% |
| October 2022 | 5.95% |
| July 2023 | 7.20% |
| June 2024 | 6.95% |
| July 2024 | 6.70% |
The Prime Rate will follow suit when the Bank of Canada raises or lowers its overnight lending rate. Variable rate mortgages fluctuate based on changes in the Prime Rate.
CIBC Fixed Mortgage Rate
CIBC offers fixed-rate mortgages with terms ranging from 6 months to 10 years. With a fixed rate, your interest rate and monthly payment stay the same for the entire term, providing stability and predictability.
| Term | Posted Rate | Special Offer Rate |
|---|---|---|
| 1 Year Fixed | 6.69% | 6.39% |
| 2 Year Fixed | 5.99% | 5.88% |
| 3 Year Fixed | 5.24% | 5.09% |
| 4 Year Fixed | 5.09% | 4.99% |
| 5 Year Fixed | 4.64% | 4.64% |
| 10 Year Fixed | 7.64% | 5.78% |
Fixed rates provide stability, but you cannot take advantage of them if interest rates fall during your term.
CIBC Variable Mortgage Rate
With a CIBC variable-rate mortgage, your interest rate changes when CIBC’s Prime Rate goes up or down. Your monthly payments stay the same, but more of your payment goes toward interest when rates rise and more toward paying down your principal when rates fall.
| Term | Posted Rate | Special Offer Rate |
|---|---|---|
| 3 Year Variable | 7.20% | 6.20% |
| 5 Year Variable | 7.00% | 5.90% |
Variable-rate mortgages offer flexibility, but they also carry the risk that payments could rise significantly if interest rates spike.
Read more: Fixed vs Variable-rate Mortgages in Canada
CIBC Mortgage Rates Compared
How do CIBC’s rates stack up against the competition? Here’s a comparison of CIBC’s lowest advertised special offer rates versus the lowest rates currently offered by Canada’s other Big Six banks:
| Term | CIBC Rate | Lowest of Big 6 |
|---|---|---|
| 1-year fixed | 6.39% | 6.34% (RBC) |
| 2-year fixed | 5.88% | 5.64% (TD) |
| 3-year fixed | 5.09% | 4.79% (TD) |
| 4-year fixed | 4.99% | 4.79% (TD) |
| 5-year fixed | 4.64% | 4.59% (Scotiabank) |
| 10-year fixed | 5.78% | 5.34% (National Bank) |
Based on current advertised rates, CIBC offers very competitive 5-year fixed rates but falls slightly behind on shorter 1-3-year terms. However, mortgage rates can change frequently, so it pays to shop around.
CIBC Mortgage Products
In addition to standard fixed and variable rate mortgages, CIBC offers specialty mortgage solutions.
Mortgages for Newcomers to Canada
CIBC offers three mortgage options tailored for new immigrants and foreign workers:
- Newcomers to Canada Mortgage: For permanent residents with limited Canadian credit history.
- Newcomers to Canada Mortgage Plus: For new citizens/permanent residents moving to Canada.
- Foreign Workers Program: For foreign nationals with a valid Canadian work permit.
These programs only require 1-3 years of foreign credit history. Newcomers can apply for a down payment as low as 5% using mortgage loan insurance.
Refinancing and Renewal
CIBC offers mortgage refinancing solutions, including:
- Refinancing an existing home to access equity or obtain a lower interest rate
- Refinancing a rental property investment mortgage
- Consolidating other high-interest debts into your mortgage
When your mortgage term expires, CIBC will provide renewal offers for terms of 6 months up to 10 years. Renewing with CIBC may provide payment stability by avoiding having to requalify at a potentially higher rate.
CIBC Mortgages for Rental Properties
CIBC offers tailored mortgages for real estate investors, including:
- Rental income properties
- Mixed-use residential and commercial buildings
- Student rental housing
Investors can access up to 4 units with 20% down. With 25% down, CIBC offers financing for 5+ units.
Second Homes and Vacation Properties
CIBC provides financing for second properties used as vacation homes or cottage rentals, including:
- Primary residence second home mortgages with 5% down
- Non-primary residence second home mortgages requiring 20% down
Eligibility for mortgage loan insurance depends on whether the home is your primary residence. CIBC also offers financing for U.S. second homes.
CIBC Cashback Mortgage
CIBC offers cash incentives for new mortgages and refinances under its Cashback Mortgage program. The amount of cashback depends on your mortgage size and terms., with the highest payouts for longer 5+ year fixed rate terms.
The maximum cashback is $50,000, and it applies to mortgages over $1,000,000. The cashback can be used for any purpose, such as paying closing costs, funding renovations, or consolidating high-interest debts.
Cashback mortgages are unavailable if you are porting in a mortgage from another institution. The cashback incentive comes with a tradeoff of a slightly higher interest rate compared to regular CIBC mortgage pricing.
CIBC Mortgage Features
CIBC provides borrowers with a selection of beneficial features and options:
CIBC Mortgage Prepayment Options
CIBC offers prepayment flexibility to pay your mortgage down faster.
Annual Prepayment Allowance
With CIBC, you can prepay up to 20% of your original mortgage balance annually without penalty. This allows you to make extra lump sum payments to pay off your mortgage faster and save on interest. CIBC has the highest prepayment limit of any major Canadian bank.
| Bank | Maximum Annual Prepayment |
|---|---|
| CIBC | 20% |
| RBC | 10% |
| Scotiabank | 15% |
| TD | 15% |
| National Bank | 10% |
| BMO | 20% |
On fixed-rate terms, you can increase your mortgage payment by up to 10% of the original balance once per year.
Utilize these prepayment features to pay down your mortgage years faster and save thousands in interest.
Double-Up Payments
CIBC lets you double your regular mortgage payment up to once per month. The extra amount goes directly toward your mortgage principal, helping you pay it down faster.
CIBC Payment Frequency
You can choose to make weekly, bi-weekly, or accelerated bi-weekly mortgage payments instead of monthly payments. More frequent installments help you pay off your mortgage sooner by reducing compound interest charges.
Read more: Mortgage Payment Options in Canada
Property Tax Payments
With a CIBC mortgage, you can pay your property taxes as part of your monthly mortgage payment. CIBC will estimate your annual property tax amount and divide it into 12 monthly installments.
When your actual property tax bill comes due, CIBC will make the full payment on your behalf using the funds from your property tax account. Any surplus funds get credited back to your account to lower next year’s installments.
If there is a shortfall, you must pay the difference separately. By opting into this system, your property taxes are paid by CIBC on your exact due dates based on your municipality, avoiding the need to budget and save a large lump sum annually or bi-annually.
CIBC Mortgage Protection Insurance
CIBC allows you to add optional mortgage life and disability insurance to provide payment coverage if you can’t work due to illness/injury or in the event of death. Premiums are bundled into your mortgage payments.
The life insurance policy pays off some or all of your outstanding mortgage balance if you die before the mortgage is fully paid off. The maximum life insurance coverage amount is $750,000.
Disability insurance covers all or part of your monthly mortgage payments if you can’t work due to illness, injury, or disability. Disability coverage has a maximum benefit of $3000 per month.
Premiums are calculated based on your mortgage amount, chosen coverage types, age and other factors. The premiums are bundled into your monthly mortgage payment for convenient administration.
CIBC Mortgage Renewal
When your mortgage term expires, you must go through CIBC’s renewal process to remain in your current home. Here’s what to expect:
Options at Renewal
CIBC will provide renewal rate offers for mortgage terms from 6 months to 10 years. You also have the option to:
- Switch to a different mortgage product
- Port your mortgage to a new property
- Pay off your mortgage in full
- Refinance your mortgage
Review all choices to see what best suits your needs when your term expires.
Renewal Timeline
180-120 days before maturity, you’ll get a renewal offer from CIBC. You can then accept or decline the offer until 30 days before renewal. If you take no action, your mortgage will automatically renew at the offered rate.
Getting the Best CIBC Renewal Rate
To get the optimal renewal rate, check CIBC’s current rates and benchmark against competitors during your 120-day opt-in period. If you find a significantly lower rate elsewhere, consider switching lenders. Also, pay down additional lump sums before renewal to improve your chances.
CIBC Mortgage Penalties
If you break your mortgage term with CIBC early for any reason, penalties will apply. CIBC uses the greater of two calculations for their prepayment charge:
- Three months of interest
- Interest rate differential (IRD) calculation
With the IRD method, you pay the difference between your current mortgage rate and CIBC’s posted rate for the time remaining on your term divided by your outstanding mortgage balance. This typically results in higher fees compared to just three months’ interest.
Always review the penalty calculations before breaking a CIBC mortgage. Ask about regional promotions – sometimes CIBC offers to cover switch costs in certain provinces.
CIBC Mortgage Portability
Porting a mortgage allows you to transfer an existing mortgage to a new property when you move without repaying the current mortgage in full. CIBC permits porting with certain conditions:
- This applies to fixed or variable-rate mortgages
- The new home must be the principal residence
- Mortgage payments must be up-to-date
- Maximum 120-day gap between home sales
- The new property meets the affordability criteria
If criteria are met, porting saves on discharge fees and interest rate differential penalties that apply when breaking a mortgage.
CIBC Mortgage Discharge
When you fully pay off your CIBC mortgage, you must complete the discharge process to close it. Here’s what’s involved in discharging with CIBC
- Contact CIBC 30-45 days before your mortgage maturity or when selling your home.
- Request a mortgage payout statement with the discharge amount
- Submit your payout request 20+ days before your payment due date
- Arrange for full payment to CIBC from the sale proceeds
- CIBC prepares and registers discharge documents
- Any overpayments get refunded to your CIBC bank account
- CIBC sends you a discharge confirmation showing the mortgage is closed
CIBC First-Time Home Buyer Programs
For first-time home buyers, CIBC offers a few programs and perks, including:
Graduated Payment Mortgage: Lower initial payments will gradually increase over five years to ease the transition from renting. After five years, payments remain steady.
Family Leverage Program: Borrowers with family support can leverage gifts from relatives toward their down payment with supporting gift letters.
Cashback Incentives: CIBC provides first-time buyers cashback incentives of up to $750 on closing costs. The loan requires a 5% down payment and a 5-year fixed term.
While CIBC has fewer specialized first-timer offerings than some competitors, gifts, graduated payments, and cashback incentives can assist new borrowers.
Read more: First-Time Home Buyers Programs in Canada
CIBC Mortgage Eligibility and Requirements
To qualify for the best mortgage rates, CIBC typically requires a minimum credit score of 600 for an insured mortgage (under 20% down payment), but they prefer a higher score of more than 650.
Applicants with scores below these thresholds may still qualify but will likely pay higher interest rates. Those with scores in the 600s may need to opt for lower ratio mortgages.
Check your credit reports and score several months before applying. To improve your rating, pay down debts and correct errors.
To be eligible for a standard mortgage with CIBC, you must:
- Submit documents to confirm your income and employment.
- Be prepared to buy in a “built-up area with municipal services like water, sewer and hydro.”
- Be prepared to make the minimum down payment.
| Purchase price | Down payment minimum |
|---|---|
| $500,000 or less | 5% |
| Between $500,000 and $999,999 | 5% of the first $500,000 plus 10% of the remaining amount |
| $1 million and over | 20% |
Aim to have your GDS and TDS ratios fall below CIBC’s limits. If above, paying down debts before applying could help you qualify without lowering your purchase price.
Applying for a CIBC Mortgage
Ready to move forward with CIBC? Here are some tips for navigating the application process.
Online, Phone, In-Person
There are several ways to apply:
- Online – Complete CIBC’s mortgage pre-approval form to get started.
- Phone – Speak with a CIBC mortgage specialist.
- In-person – Book an appointment at one of CIBC’s Canadian branches. Over 1000 locations are available.
Those wanting extra assistance may benefit from applying in person. Online applications offer convenience but are less personalized.
Mortgage Pre-Approval
Getting pre-approved provides a stress-free way to confirm your eligibility and lock-in rates before shopping:
- Complete the CIBC online pre-approval form or book a meeting
- You’ll need to provide financial information for income, down payment funds, debts, etc.
- CIBC will review and issue a pre-approval certificate if you qualify
- Locks in a mortgage rate for 60-120 days while house shopping
With pre-approval, you can shop confidently, knowing you are qualified and the rate is held.
Documents Needed
Be prepared to provide the following documentation when applying:
- Income verification (pay stubs, NOA, T1 General)
- Down payment evidence (bank statements, investment records, gift letter)
- Debts and assets list
- Purchase agreement and listing
- Banking information
- ID and SIN documentation
Having these ready streamlines the approval process. CIBC may request additional documents from some applicants.
Ready to Get your CIBC Mortgage?
This comprehensive guide provided the mortgage rate data and customer insights needed to make an informed decision about choosing CIBC for your home financing needs. Their broad product range, prepayment flexibility, and competitive fixed-rate pricing make them a top pick for many Canadian home buyers and refinancers.
To get started on your application or learn more, contact CIBC mortgage specialists today by phone or book an appointment at a CIBC branch near you. With personalized advice and support, CIBC can guide you seamlessly through the mortgage process from pre-approval to close.
For more help assessing your mortgage options, contact the independent experts at Best Mortgage Online today!
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FAQs
What mortgage terms does CIBC offer?
CIBC offers variable rate terms of 3 and 5 years, and fixed-rate terms range from 6 months up to 10 years. Popular terms are 2, 3, 4, 5, and 10 years.
How often does CIBC change their mortgage rates?
CIBC can change their posted rates at any time. Special discounted rates change less frequently, such as if the Bank of Canada adjusts its overnight rate.
How do I choose between CIBC fixed and variable rate mortgages?
Fixed rates provide payment stability, while variable rates offer potential savings if the prime rate falls. Consider your budget, plans, and rate forecasts.
Does CIBC offer mortgages for investment properties?
Yes, CIBC offers tailored mortgages for investors financing rental income properties, mixed-use buildings, and student housing.
What credit score is needed for a CIBC mortgage?
You generally need a minimum score of 680 for conventional mortgages or 700 for high-ratio mortgages to get CIBC’s best rates.
How do I pay my property taxes with a CIBC mortgage?
You can opt to pay property tax installments along with your mortgage payments monthly. CIBC pays your bill when due.
Can I port my mortgage to a new home with CIBC?
Yes, CIBC allows mortgage portability when you sell and buy another home without breaking your terms if certain conditions are met.
Does CIBC offer payment breaks on their mortgages?
No, CIBC does not offer annual payment skips like some lenders. But you can double payments to pay your mortgage down faster.
Can I get my CIBC mortgage insurance premiums refunded?
Yes, you can cancel insurance and get a prorated refund once you reach 20% home equity.
Can I get a mortgage for a vacation property with CIBC?
Yes, CIBC offers mortgages for vacation homes and cottages. The minimum down payment will depend on whether it's a primary or secondary residence.