Canadian Western Bank Variable Rate Mortgages Archives

Introduction to Canadian Western Bank

Founded in 1988 and headquartered in Edmonton, Alberta, Canadian Western Bank (CWB) has grown into one of the top financial institutions in Canada.

With over $36 billion in assets as of 2024, CWB offers a full suite of personal and business banking services, including mortgages, bank accounts, credit cards, loans, and wealth management.

Initially starting as an Alberta-based bank, CWB expanded operations into British Columbia, Saskatchewan, Manitoba, and Ontario. They aim to diversify lending across provinces, with significant growth expected in Ontario.

CWB operates a network of branches across Western Canada, primarily in Alberta, and an online and mobile banking platform. This combines physical locations with digital accessibility, providing customers with flexible options for accessing CWB’s products and services.

What are Current Canadian Western Bank Mortgage Rates?

Canadian Western Bank Mortgage Rates

Canadian Western Bank CWB Fixed Mortgage Rates

Fixed-rate mortgages offer stability and predictability, making forecasting your long-term home financing costs easy. CWB provides fixed-rate mortgages with terms ranging from 6 months to 10 years.

The most popular options are 5-year and 3-year fixed terms. These provide an ideal balance of reasonably priced interest rates and flexibility before renewal. Below are CWB fixed mortgage rates compared to the lowest nationally advertised rates.

Term	CWB Rate	Lowest Rate
6 Months	7.95%	3.99%
1 Year	6.64%	5.84%
2 Years	6.09%	4.89%
3 Years	5.14%	4.29%
4 Years	5.04%	4.29%
5 Years	4.84%	4.14%
7 Years	5.54%	4.84%
10 Years	6.04%	5.54%

CWB Fixed Mortgage Rates (Insured)

*Rates current as of September 2024. Lower rates may be available for conventional mortgages or borrowers with excellent credit.

CWB offers competitive 5-year fixed mortgage rates, while longer and shorter terms are pricier.

Canadian Western Bank CWB Variable Mortgage Rates

Variable-rate mortgages fluctuate based on the prime rate. They offer lower initial rates but carry the risk of increased payments if rates rise.

CWB variable rate mortgages can be an attractive option for borrowers who can manage unpredictable payments. Here are CWB’s current variable rates:

Term	CWB Rate	Lowest Rate
3 Year	5.15%	4.79%
5 Year	5.20%	4.99%
10 Year	5.65%	5.15%

CWB Variable Rate Mortgages (Insured)

*Rates current as of September 2024. Lower rates may be available for conventional mortgages or borrowers with excellent credit. [Source]

CWB offers competitive 5-year variable rates. The 3-year variable is more expensive than alternatives.

Your monthly payment stays the same with variable-rate mortgages, but the split between interest and principal fluctuates. If prime drops, more of your payment goes to the principal. If prime increases, interest makes up a larger portion.

Canadian Western Bank CWB Prime Rate

The prime rate is the benchmark interest rate set by the Bank of Canada, which all significant lenders use to price variable-rate mortgages and other prime-based loans.

When the Bank of Canada increases or decreases the prime rate, CWB adjusts its prime rate by the same amount. Changes to prime immediately impact borrowing costs on CWB variable rate mortgages, lines of credit, and commercial loans.

As of September 4, 2024, the CWB prime rate is 6.45%. CWB takes their prime rate to determine mortgage rates and adds or subtracts a percentage based on market conditions and risk. For example, today’s 5-year variable mortgage rate is prime (6.45%) minus 1.25% for a discounted rate of 5.20%.

What is Canadian Western Bank CWB Homeworks?

Canadian Western Bank offers a unique product called Homeworks, which bundles a mortgage and home equity line of credit (HELOC).

With Homeworks, your mortgage and HELOC share the same collateral – your home equity. This provides easier access to a revolving credit facility with rates preferable to unsecured loans.

Benefits of CWB Homeworks:

Affordability: HELOC borrowing has lower interest rates than credit cards or personal loans.
Flexibility: Access extra funds anytime for large purchases or unexpected expenses.
Cost savings: Avoid legal/appraisal fees for separate HELOC applications.
Consolidation: Combine debts under one loan for simplified finances.

You can use CWB Homeworks funds for:

Home renovations
Debt consolidation
Major purchases like a car
Contributing to investments
Building an emergency fund

Having an integrated HELOC alongside your mortgage provides financial flexibility. The funds are there when you need them at below-prime interest rates.

Pros and Cons of Getting a Mortgage with Canadian Western Bank

Choosing Canadian Western Bank for your mortgage provides many advantages:

Established reputation: As a large national bank, CWB offers stability and trustworthiness developed over 30+ years in business.
Competitive rates: CWB offers competitive rates on popular 5-year fixed and variable mortgages.
Bundled offerings: CWB lets you bundle a mortgage with a HELOC through their Homeworks product for added flexibility.
Prepayment options: CWB offers prepayment allowances that allow you to pay your mortgage faster.
Portability: CWB mortgages can be ported to a new property without penalty.
Accessibility: With an extensive branch network, CWB provides in-person mortgage services.

Some potential drawbacks of a CWB mortgage include:

Rates: CWB’s rates may not be as low as those of some direct or online-only lenders for less familiar terms.
Limited footprint: CWB branches are concentrated in Western Canada, with fewer locations in Ontario.
Fewer options: CWB has a more limited selection of specialized mortgage products than monoline mortgage lenders.

What are the key features of CWB Mortgages?

Canadian Western Bank Mortgage Features

CWB offers several features to help you save interest, reach mortgage freedom faster, and avoid fees.

CWB Prepayment Allowance

One of the most valuable features offered by CWB is the annual prepayment allowance. This allows you to prepay up to 20% of the original mortgage principal every calendar year without incurring penalty charges.

This flexibility allows borrowers to accelerate repayment and reduce the amount of interest paid over the mortgage’s lifetime.

The prepayment allowance is handy for those who receive occasional lump sums like bonuses or inheritance money. It also rewards disciplined borrowers who want to allocate extra funds to pay down their mortgage quickly.

Lender	Prepayment Limit
CWB	20%
TD Mortgage	15%
Scotiabank	15%
CIBC	10% to 20%
RBC	10%
BMO	Up to 20%
National Bank	10%

Prepayment Limit of CWB vs. Big Six Banks in Canada

CWB Mortgage Prepayment Charges

You will face prepayment charges if you break your CWB closed mortgage term early. However, no penalties apply for prepayments on CWB open mortgages.

Here are CWB’s prepayment policies:

Variable Rate Mortgage: 3 months interest penalty
Fixed Rate Mortgage: The greater of a 3-month interest penalty or the IRD penalty

The IRD – Interest Rate Differential – calculates losses to the lender from reinvesting at lower rates.

To estimate CWB’s IRD penalty, you can use this formula:

IRD Penalty Estimate = Mortgage Balance x (CWB Posted Rate – Your Contract Rate) x Remaining Months ÷ 12

For example:

Mortgage Balance: $300,000
CWB Posted Rate for Remaining Term: 5.49%
Your Contract Rate: 4.84%
Remaining Term: 27 months

IRD Penalty = $300,000 x (5.49% – 4.84%) x 27/12 = $5,175

Using CWB’s online penalty calculator provides the most accurate IRD estimate.

CWB Payment Frequency Options

CWB allows you to select between weekly, bi-weekly, and monthly payment frequencies. This lets you match your mortgage payments with your unique pay schedule and cash flow preferences.

Increased payment frequency saves on interest costs throughout the mortgage. Weekly or bi-weekly installments reduce the principal balance faster, allowing less interest to accrue. This can lower the total interest paid over a 5-year mortgage term by thousands of dollars.

The option for monthly payments still exists. Overall, CWB provides welcome flexibility in selecting the payment frequency that best fits your circumstances.

CWB Mortgage Portability

Canadian Western Bank offers a mortgage portability feature when selling your current home and purchasing another property. This means your existing mortgage can be transferred to a new property purchase without facing any prepayment penalties. Your interest rate, remaining amortization, and mortgage balance remain the same.

Certain conditions apply to qualify for mortgage portability, including:

The new property purchase must occur within 120 days
The new mortgage cannot exceed the original approved amount
You must re-qualify for the mortgage amount based on affordability thresholds when porting to the new property

As long as you meet the requirements, portability offers major cost savings and convenience when moving homes before your existing mortgage term expires.

Optional Mortgage Insurance

Through its partnership with Canada Life, Canadian Western Bank offers optional mortgage life insurance and disability insurance that can provide valuable protection.

Mortgage life insurance covers your outstanding mortgage balance in the event of death. Disability insurance covers monthly mortgage payments if you cannot work due to illness, injury, or disability.

These optional insurance plans can help provide peace of mind by protecting your mortgage even in tragic, unexpected circumstances.

With its competitive rates, flexible features like prepayment allowances and payment frequency choices, portability, and optional creditor insurance, Canadian Western Bank offers a mortgage product set that can be customized to meet individual borrowers’ needs and goals.

Looking for more Mortgage options? Discover our Best Banks for Mortgages in Canada

Get the Best Canadian Western Bank Mortgage for You

Canadian Western Bank offers a reputable option for your mortgage needs. As one of Canada’s largest national banks, CWB provides competitive rates on popular terms alongside the convenience of branches and professional advisors.

Yet, comparing CWB to alternative lenders is essential to finding your best rate for specific terms and features. Connecting with an independent mortgage broker is the optimal way to ensure you secure the optimal mortgage product and rate for your situation.

You can make a wise mortgage decision based on the latest CWB rates, prepayment policies, offerings like Homeworks HELOC bundles, and the lender’s strengths as an established lender.

To determine the optimal CWB product for your situation, contact one of the mortgage experts at Best Mortgage Online today. Whether you want branch accessibility or purely digital service, we can suggest the right CWB mortgage and lender. Get started now with a free consultation!

FAQs

What are the most popular CWB mortgage terms?

The 5-year and 3-year fixed terms are the most popular due to their competitive rates and balance of rate stability with renewal flexibility.

Does CWB offer mortgages across Canada?

Yes, CWB provides mortgages coast-to-coast in Canada. However, they have more branch locations in Western provinces.

How quickly can I get a CWB mortgage pre-approved?

Applying through CWB's digital platform can result in a pre-approval decision in as little as 24 hours. In-branch pre-approvals are also very quick.

Can I make extra CWB mortgage payments?

Yes, CWB allows annual prepayments of up to 20% of your original principal without penalty. You can also increase regular payment amounts.

What CWB mortgage features help avoid penalties?

Portability lets you transfer your mortgage to a new home purchase without penalty. Open mortgages also allow extra payments without penalties.

Should I choose a fixed or variable rate from CWB?

Fixed rates provide stability, while variable rates offer potential savings, but with the risk of rising payments if the prime rate increases.

Is mortgage insurance required for a CWB mortgage?

Mortgage insurance is required on CWB mortgages if the down payment is less than 20% of the purchase price.

How do I contact CWB about getting a mortgage?

You can visit a CWB branch, call hotline, or apply online at cwbank.com. An independent broker can also assist you.

Can I switch my existing CWB mortgage to a different term?

Yes, CWB allows you to switch between fixed and variable terms but this may trigger prepayment penalties.

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