The mortgage portability option allows you to transfer or “port” the remainder of your existing mortgage term, outstanding principal balance and interest rate to a new property if you are selling your current home and buying a new one.
You must apply in writing to port your mortgage. Both you and the new property must meet CIBC’s mortgage approval criteria. Note that there are a number of other conditions and restrictions on porting your mortgage, so call us for details.
The interest rate advertised or shown by a lender as the interest rate it charges for a mortgage product. A borrower may be able to negotiate with the lender for a lower interest rate.
Pre-approved mortgage certificate (or mortgage pre-approval certificate)
A letter from a lender stating that you are pre-approved for a mortgage on certain terms. The pre-approval certificate will also list requirements that you must satisfy to obtain final approval for the mortgage.
Pre-payment (sometimes called a lump sum payment)
Early repayment of all or part of a mortgage.
When a closed mortgage is prepaid, the lender may charge a prepayment charge.
The amount charged by a lender when the borrower pays all or part of the mortgage before it is due during the mortgage term. However most closed mortgages allow the borrower to pay a certain amount of the mortgage early without paying a prepayment charge.
Prepaid property tax and utility adjustments
These are amounts a home buyer must pay to the seller on closing if the seller has prepaid property taxes or utility bills.
For example, if your purchase closed on June 1 and the seller prepaid taxes and utilities to June 30, you will be required to pay the seller the amount of this overpayment. The adjustment amount is calculated by the lawyer, paralegal or notary closing the transaction.
Prime rate (or prime interest rate)
The prime rate is the interest rate that a lender publicly announces as its reference rate for certain variable interest rate loans. The prime rate can change at any time.
For most CIBC variable interest rate mortgages, the interest rate is based on CIBC's prime rate. For example, if the interest rate for a variable rate mortgage is CIBC prime rate plus 1%, the interest rate charged is one percent per year above the CIBC prime rate in effect from time to time. For most variable rate mortgages, the interest rate changes when the prime rate changes.