Canadian Imperial Bank of Commerce - Best Mortgage Rates
Fixed Rate Mortgages
CIBC Fixed Rate Closed Mortgages
A fixed mortgage rate gives you the ability to “lock-in” a predetermined rate for a term (set time period). Although you can get one that can last anywhere from 6 months to 25 years, the most popular term is 5 years.
| Term | Posted Rate | Special Offers |
| 1 year | 3.39% | |
| 2 years | 3.39% | |
| 3 years | 3.94% | |
| 4 years | 4.49% | |
| 5 years | 5.34% | 3.04% |
| 7 years | 6.45% | 3.29% |
CIBC Fixed Rate Open Mortgages
The security of a fixed interest rate and the flexibility to pay off as much of your mortgage as you want, when you want.
| Term | Posted Rate | Special Offers |
| 6 months | 7.25% | |
| 1 year | 6.35% |
Variable Rate Mortgages
CIBC Variable Flex Mortgage®
The variable mortgage rate will be based on the mortgage lender’s prime rate and the prime rate is based on the current economic conditions. This is the benchmark interest rate that is used by the big banks when they are pricing out short-term loans. The prime rate can go up or down on a monthly basis and as a result, the variable mortgage rate could go up or down as well.
| Term | Posted Rate | Special Offers |
| 3 years | 3.95% | |
| 5 years | 3.95% |
CIBC Variable Rate Open Mortgage
A set monthly mortgage payment. If the CIBC Prime rate goes down, more of your payment goes to the principal. If the rate rises, more of your payment goes to interest.
| Term | Posted Rate | Special Offers |
| 5 years | 5.75% |
FAQ
Benefits Of A Fixed Mortgage Rate:
- Added security in knowing that your principal and interest amounts won’t change for the duration of the term
- Budgeting and financial planning are much easier
- There is a lower risk involved
Downsides Of A Fixed Mortgage Rate:
- The cost will be more for securing and locking at a certain rate
- If you break the contract, you will end up paying more and this will result in a high long-term cost
Benefits Of A Variable Mortgage Rate:
- As long as the prime rate doesn’t go up, then the monthly payments will be lower
- You will be paying three months of interest charges if you break the contract
Downsides Of A Variable Mortgage Rate:
- Lower financial security because if the prime rate increases, so does the monthly interest
- Budgeting and financial planning is harder to do
Does The Prime Rate Have An Effect On Mortgage Rates?
The interest rate will be expressed as the CIBC prime rate, plus or minus a certain percentage point when you receive a variable mortgage from CIBC. An example of this is that if the CIBC prime rate is 3.00%, and your mortgage rate is prime minus 0.50%, your mortgage rate is 2.50%.
So, if CIBC changed its prime rate, it would increase your mortgage rate by the same amount. For example, if the CIBC prime rate went up to 3.25%, the mortgage rate will increase to 2.75%.
This rule does not apply to fixed mortgage rates. When you accept a fixed-rate loan, the mortgage rate will not adjust over the whole duration of the term. In the event that rates go up, it mitigates your risk, because your price will not increase. However, you won’t enjoy the added benefit if the rates go down. Fixed rates are better if you think mortgage rates are going to increase, or if you want the added security in.