(NC)-What's that? You hate negotiating? Couldn't negotiate yourself out of a wet paper bag, you say? When it comes to mortgages at least, you won't have to.
Source: NewsCanada
With mortgage rates still relatively low and competition fierce, many financial institutions have introduced mortgage offers with up front discounts on the rate, so you don't have to worry about negotiating the rate down. These discounts are available with a variety of terms and types of mortgages. Financial institutions are offering discounts on both fixed rate mortgages (where the interest rate remains constant for the duration of the term) and on variable rate mortgages (where the interest rate fluctuates with the prime rate).
Split-level discounts can also be given.
These are mortgage offers with an introductory or promotional discount for the first few months, followed by a smaller, but still significant, discount for the remainder of the mortgage term. CIBC offers these kinds of discounts with their CIBC Better Than Prime MortgageT and CIBC Better Than Posted MortgageT. For example, the CIBC Better Than Prime MortgageT is a 5-year closed, variable rate mortgage that gives you an introductory discount of 1.01% off CIBC's prime rate for the first 9 months of the term followed by a rate of 0.25% below the CIBC prime rate for the remainder of the 5-year term. If you are looking for a fixed rate product, CIBC offers the CIBC Better Than Posted MortgageT, with an introductory discount of up to 2.01% off of CIBC's posted rate for the first 9 months of the term followed by up to 1.00% off of CIBC's posted rate for the remainder of the term.
While the interest rate is an important factor when shopping for a mortgage, it is not the only consideration. Other things to consider when choosing a mortgage include the length of mortgage term, whether the mortgage is open or closed, options for cash back or collector points, the prepayment privileges and how easy or difficult it is to break your mortgage term if you need to. These are all questions your Personal Banker can help you answer, so make sure to book an appointment as soon as you are ready to buy a home. Your Personal Banker can give you tips and advice that can help you own the home you love sooner.
To discuss your mortgage options, contact your local CIBC branch or call 1 800 465-CIBC (2422). You can also visit the CIBC website at www.cibc.com.
Products and their features may change at any time. This is a general description only.
TMTrademark of CIBC
- News Canada
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