As a direct banking service of CIBC, we have the expertise you can rely on to help make owning your home a breeze. Our experienced mortgage specialists can help you explore your options to make each payment go further.
You're comfortable knowing that your payment amount may change if interest rates change
You want the option to convert to fixed if rates go up
You think interest rates won't increase
Applies only to new mortgages of owner-occupied properties with an amortization of 25 years or less.
Annual Percentage Rate (APR) is the cost of borrowing for a loan expressed as an interest rate. It includes all interest and non-interest charges associated with the mortgage. If there are no non-interest charges, the annual interest rate and APR will be the same.
The cost of borrowing for a loan expressed as an annual percentage. It includes all interest and non-interest charges.
Amortization is the amount of time you have to pay off your mortgage. The maximum amortization period in Canada is up to 30 years for conventional mortgages.
Term is the amount of time you commit to a mortgage rate and lender. When your term is up, you need to renew your mortgage. Terms range from 2 years to 10 years, though 5-year terms are the most common.
Tells you how much mortgage you may qualify to borrow. It's based on the amount of down payment you put down, your debt-to-income ratio, current income and credit history. You can apply for pre-approval online or by calling us at 1-888-236-6362Opens your phone app..
The fee you pay if you go over your prepayment allowance. This amount depends on the type of mortgage you have. To find out how much it may cost you to prepay your mortgage, use our mortgage prepayment charge calculator.
There are several ways to avoid prepayment charges:
For mortgages with a term of 1 year or longer, make lump sum payments of no more than 20% of your original principal each year or wait for renewal to pay off your mortgage
For fixed rate mortgages, increase your payments by no more than 25% of the payment amount you chose
For variable rate mortgages, increase the payment each year to any amount as long as the amortization isn't reduced to less than 5 years
If you have a 6-month convertible mortgage, prepay up to 15% once a year. For a 12-month convertible mortgage, you have the option of a prepayment privilege of up to 25%.
When you need a mortgage loan to buy your home, lenders require security for repayment. This gives the lender certain rights, including the right to sell the property if the loan isn't repaid as agreed.
There are 2 types of charges a lender can register: standard or collateral. Standard charges are also referred to as traditional, conventional or non-collateral.