Kurt Woock
Beth Buczynski
CIBC mortgages at a glance
One of Canada’s Big 6 banks, CIBC offers common and uncommon types of mortgages. It also has a large presence throughout the country.
- Large bank with a nationwide footprint.
- A wide range of mortgage products, from standard fixed- and variable-rate loans to products designed for buyers with specific needs, like a second home.
- Advertised terms range from six months to 10 years.
- Fixed-rate mortgages.
- Variable-rate mortgages.
- Convertible mortgages
- High-ratio mortgages.
- Home equity line of credit.
- Mortgages for second homes.
- Mortgages for newcomers to Canada.
Pros
- Wide range of mortgage products and terms.
- Option to submit applications in-person and online.
- Programs for newcomers to Canada.
- Mortgage information is easy to find on the bank’s website.
Cons
- Limited options for borrowers with low or bad credit.
- Online application forms are less robust than other lenders.
CIBC mortgage review
CIBC is one of Canada’s Big 6 Banks — large financial institutions that offer a wide array of financial products and services and that have a presence in most or all of the country.
With that size comes the benefit of having many branch locations, a possible selling point for home buyers who prefer to meet their mortgage lender face-to-face. Big banks are also more likely to offer types of mortgages more specific than, say, a standard three-year or five-year fixed mortgage. Examples include mortgages for an investment property or newcomers to Canada.
Who is CIBC best for?
Due to its large footprint and range of mortgage types, CIBC could be a good choice for almost any home buyer, including first-time home buyers.
Those who already bank with CIBC may view it as an especially convenient option. Consolidated accounts can be easier to manage, and, in some cases, there are benefits by doing more of your banking with CIBC. For example, if you plan to have creditor insurance, which essentially pays off some or all of your mortgage balance if you die, become disabled or lose your job, you can apply for coverage with CIBC as part of your mortgage application. If approved, your payment is bundled with your mortgage payment.
CIBC mortgages: feature overview
Variety of mortgages available
CIBC offers a ton of mortgage types — even farm mortgages, for example, if that’s what you’re looking for. Its wide range of options is on par with Canada’s other Big Six banks. If you have bad or low credit, however, you may need to seek an alternative lender; CIBC doesn’t typically work with these types of mortgages.
CIBC advertises:
- Fixed-Rate Mortgages.
- Variable Mortgages.
- Convertible Mortgage.
- Home equity lines of credit.
- Renewals and refinances.
- Mortgages for new construction.
- Mortgages for newcomers to Canada.
- Second mortgages.
Ease of application
You can start the pre-qualification, pre-approval and approval processes on CIBC’s website or in person at a CIBC branch. The online forms are helpful but are little more than contact forms; expect to work directly with a CIBC representative after submitting.
- Online pre-qualification: Yes. You can submit pre-qualification paperwork online.
- Online pre-approval: Yes. The pre-approval and application forms are on the same page; make sure you select the right one before submitting.
- Online mortgage application: Yes. You can start applying for a mortgage online.
- In-person option: Yes. CIBC has more than 1,000 branches across the country.
Mortgage rate transparency
CIBC is among the most transparent mortgage lenders we’ve seen.
- Posted rates: Like most Big Six banks, CIBC has posted rates for many different mortgage types.
- Special rates: On CIBC’s website you can find corresponding discounted rates for most of its posted rates.
- APR: CIBC includes APRs for most of their fixed and variable rates.
Nerdy Tip: A “special rate” represents the lowest rate a lender offers and is reserved for the strongest applicants (posted rates are generally at the high end of offered rates). Together, they paint a picture of the range of rates you can expect to see. An APR, or annual percentage rate, combines a lender’s interest rate with the fees it charges; use this, not just the interest rate, when comparing lenders.
Other CIBC mortgage details
Increase your payments: You can raise your regular payment up to 100% without penalty.
Make lump-sum payments: Pay off your mortgage earlier with payments up to 10% of your original loan on fixed-rate closed mortgages. You can do this once per year.
Prepayment penalties: If you pay off your fixed-rate mortgage beyond the set limits, you’ll pay a prepayment penalty. At CIBC the penalty is the greater of three months interest on the prepayment amount based on your mortgage interest rate or the interest rate differential on your prepayment amount. For variable-rate mortgages, the penalty is 3 months interest based on CIBC’s prime rate.
Range of terms: Six-month convertible mortgage to 10-year fixed.
Rate hold: CIBC will hold rates for 120 days, which is standard in the mortgage industry.
Portability: If you sell a home with a CIBC mortgage and buy another, you may be able to port your mortgage. CIBC’s website says this option is only available with some mortgages, but doesn’t specify which.
Programs for newcomers: If you’re new to Canada and have limited or no credit history, you may be able to get a mortgage with CIBC.
Customer satisfaction ratings
It’s difficult to gauge how satisfied Canadians are with CIBC as a mortgage provider. Customer review websites can be helpful, but keep in mind that the reviews aren’t verified and may not accurately reflect the average option of CIBC customers; for example, unhappy customers may be overrepresented in these reviews. Nevertheless, these sites are one way to learn about possible downsides to consider.
CIBC’s rating on Trustpilot was 1.4 out of 5 possible stars, with more than 1,000 reviews at the time of this writing. The most recent reviews contained feedback about a number of CIBC’s products and services; not just mortgages.
CIBC had a rating of 1.16 out of 5 possible stars on the Better Business Bureau website. About 60 reviews had been submitted at the time of this writing. Like Trustpilot, the reviews were not exclusively about CIBC’s mortgages.
CIBC mortgage eligibility requirements
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.
Your down payment minimum is determined by the purchase price:
| 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% |
Nerdy Tip: Use a mortgage affordability calculator to determine how much you can afford to pay for a home. If you have a unique situation or need additional information about the eligibility requirements, it’s best to speak directly with a mortgage specialist.
How to apply for a mortgage with CIBC
CIBC makes many of its application forms available online.
Once on CIBC’s website, tap or hover over the tab titled “Mortgages.” On the menu that appears, look for the “Tools and Resources” section. That’s where you’ll navigate to CIBC’s online pre-qualification, pre-approval and mortgage application forms.
Once you choose “Pre-qualify for a Mortgage” from the Tools and Resources menu, you’ll be asked a series of questions that will help CIBC determine how much they might be willing to loan you.
You’ll need to provide some personal information. When we went through the process, we had to confirm what we entered by answering questions related to our recent banking history.
After you provide your gross household income, you’ll receive an estimated purchase price, mortgage amount and the name of the CIBC Mortgage Advisor who will follow up with you.
The mortgage pre-approval and mortgage applications begin on the same page; make sure you select which you want to submit on the top of the page.
When submitting a pre-approval, you’ll be asked to provide a down payment estimate as well as your household income.
The mortgage pre-approval and mortgage applications begin on the same page; make sure you select which you want to submit on the top of the page.
You’ll be asked to provide a down payment estimate as well as your household income.
You’ll eventually work with a mortgage advisor to submit more information, including documentation to verify your financials.
Alternatives to CIBC’s mortgage products
| Tangerine | RBC Mortgage | Rocket Mortgage | |
|---|---|---|---|
| Lender type | Online-only bank | Big Bank lender | Mortgage broker |
| Service area | National | National | National |
| In-person service? | No | Yes | No |
| Ease of application | Easy (online) | Easy (online, phone, in-person) | Easy (online) |
| Mortgage variety | Average | Average | Above average |
CIBC mortgage FAQs
Choosing a mortgage lender is a big decision. A mortgage is a large debt, and you want to make sure that you’re getting the best deal possible. If you’re a first-time home buyer, you’ll also need to learn the basics about the home buying process. Start by making a list of what’s important to you, and spend time comparing offers from the different types of providers.
You can start by following these steps:
Decide your budget: It’s important to have an idea of how much mortgage you can comfortably afford before talking with lenders. They may offer you more than you want to spend; it’s important to be ready for that conversation.
Understand the different types of lenders: Mortgage providers include banks, credit unions, brokers, alternative lenders, and private lenders. Each has its pros and cons.
Compare offers from three different lenders: To ensure you have a good idea of what’s out there, consider seeking mortgage pre-approval from a big bank, a broker and one other type of alternative lender.
Don’t focus too much on rates: The interest rate is just one part of the mortgage equation. Yes, you want the most competitive rate possible, but it’s also important to weigh the reputation of the lender, the quality of customer service they provide, the types of loans they offer, the fees they charge, and the flexibility of terms they may offer.
Like most mortgage brokers and lenders, CIBC will consider the following when estimating what the regular payment might be for your future mortgage:
- Home price: the total amount you agree to pay for a home.
- Down payment: the total amount you’ll pay upfront toward a home purchase.
- Amortization period: the number of years over which you’ll repay your mortgage.
- Mortgage term: the length of the contract you’ll have with your mortgage lender.
- Payment frequency: how often you’ll make a mortgage payment.
- Mortgage interest rate: the fee you’ll pay to borrow money from the lender; expressed as a percentage of the loan amount.
- Property taxes or title transfer fee: an annual fee based on your property value.
- Mortgage default insurance: an extra cost you’ll pay if your down payment is less than 20%.
Example:
- Home price: $650,000
- Down payment: $58,500 (9%)
- Amortization period: 25 years
- Mortgage term: 5 years
- Payment frequency: Monthly
- Mortgage interest rate: 5.5%
- Mortgage insurance: $23,660
TOTAL MORTGAGE: $615,150
MONTHLY MORTGAGE PAYMENT: $3,778
» MORE: Use our mortgage payment calculator to compare different loan scenarios
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