Mortgage Frequently Asked Questions

Mortgages are loans you take out to buy real estate or turn your home equity into cash. Once approved, you repay the loan according to specific terms that include interest rate, payment amount and timeline. These details are set out in the mortgage document.

Your lender registers a charge on your property. If you can't repay the mortgage, your lender can take possession of your property and sell it to collect any money you owe them.

Mortgage amortization period is the length of time it takes to pay off a mortgage, including interest. It may be between 5 and 30 years, depending on how much you can afford to pay. For a new mortgage, the amortization period is usually 25 years.

Mortgage term is how long you commit to your mortgage rate, details and conditions with a lender. When a term ends, you pay off the mortgage or renew it for another term if your lender agrees. Terms range from 1 to 10 years, but 4- to 5-year terms are most common.

To calculate interest on your variable-rate mortgage, you need your outstanding principal balance, current mortgage rate and payment frequency.

Multiply the outstanding principal amount by the mortgage rate in effect at the time. Divide that result by 365. Multiply by the number of days in the payment period in which that mortgage rate was in effect.

Interest is also calculated this way in leap years. You pay interest on your regular payment dates.

If you have a fixed-rate mortgage, interest is compounded semi-annually, not in advance.

If you have a fixed-rate mortgage, your interest rate and monthly payments stay the same for the entire mortgage term. If interest rates go up during the term, you're protected because your rate stays the same.

If you have a variable-rate mortgage, your interest rate changes when a specified financial index (such as CIBC Prime Rate) changes. Your mortgage agreement explains how and when your interest rate will change. Your regular payments may stay the same. But if interest rates go down, more of your payment goes towards the principal. If rates go up, more of your payment goes towards the interest.

You can prepay an open mortgage, in part or in full, without a prepayment charge. Open mortgages usually have higher interest rates than closed mortgages. But open mortgages are also flexible. If rates start to increase, you can easily switch to a closed mortgage.

If you prepay a closed mortgage before the mortgage term ends, you'll pay a prepayment charge. For example, for a fixed-rate closed mortgage, the charge is usually the greater of 3 months' interest or the interest rate differential (IRD). For a variable-rate closed mortgage, the charge is usually 3 months' interest. Closed mortgages usually have better interest rates than open mortgages.

A short-term mortgage (with a term of 3 years or less) usually has a lower interest rate than a longer-term mortgage. When interest rates are high, and you think they may drop, choosing a short-term mortgage lets you lock in for a shorter period. A short-term mortgage may also be a good option if you plan to sell your home or pay off the mortgage early.

A long-term mortgage usually has a higher interest rate than a shorter-term mortgage. When current rates are reasonably low, choosing a longer term secures the interest rate for a longer period of time and makes budgeting easier.

CIBC doesn't offer mortgage default insurance. If you need mortgage default insurance, your lender will arrange it through Canada Mortgage and Housing Corporation (CMHC)or another mortgage insurance company. But you pay the premium.

The premium is based on the size of your mortgage and down payment. You usually add the premium to your mortgage principal.

One reason you need this insurance is if you have a high-ratio mortgage ― when your down payment is less than 20% of the property value. Mortgage default insurance protects your lender if you default on the loan.

You can't cancel mortgage default insurance.

Get a claim form at a CIBC Banking Centre, by calling the CIBC Creditor Insurance Helpline at 1-800-465-6020 or at Creditor Insurance for CIBC Borrowing Solutions.

You can cancel mortgage life insurance, mortgage critical illness insurance, mortgage disability insurance or mortgage disability insurance plus (disability and job loss insurance) at any time. Complete a cancellation form in a banking centre, submit your request in writing or call the CIBC Creditor Insurance Helpline at 1-800-465-6020.

No, a HELOC is not the same as a mortgage loan. With a mortgage loan, you receive funds on a certain date and pay them back according to your mortgage agreement. A HELOC is a line of credit that lets you access up to 65% of your home's appraised value. You use the funds you need and pay them back. Both a HELOC and a mortgage loan are secured by a registered charge on the title to your property. Learn how to consolidate your debt into a mortgage.

Yes, you can access your home equity to renovate even if you've done this before. You need a current appraisal of your home to find out how much equity you have. Then complete a new home equity line of credit application using your new value. Your lender determines if you qualify for the increased borrowing amount.

Learn about the CIBC Home Power Plan Borrowing Solution.

Yes, CIBC offers farm or agricultural mortgages. For more information, go to CIBC farm mortgage loans, visit a banking centreOpens a new window in your browser. or book a meetingOpens a new window in your browser. .

You usually arrange a mortgage before house construction. But if you start construction and need financing, you may still be approved for a mortgage. For more information, visit a banking centreOpens a new window in your browser. or book a meetingOpens a new window in your browser. .

For information about CIBC mortgages and related products, go to CIBC mortgages.

Yes, CIBC has several online tools and calculators to help you with the mortgage process:

For more information about CIBC mortgages and related products, go to CIBC mortgages.

To qualify for most CIBC mortgages, you and your property need to meet a few requirements.

You need to have:

Documents that confirm your income and employment
A certain amount of equity in your property
Enough income to make your regular mortgage payments
If you're buying a home, a minimum 5% down payment

The property should be:

Located in a built-up area with municipal services like water, sewer and hydro
Structurally sound with good plumbing, central heating and wiring that meets municipal standards

You might need a guarantor if you can't meet all the lending criteria on your own. Also, the minimum mortgage amount is $10,000.

CIBC mortgages are available across Canada on new or existing properties ranging from detached single-family homes to 4-unit dwellings or individual condo units. You can use a CIBC mortgage to buy a property, transfer a mortgage from another financial institution, and for mortgage renewal, refinancing and assumption. Conditions apply to each.

Find out how much mortgage you can afford with our mortgage affordability calculator.

Minimum down payment requirements vary depending on where you live in Canada. They range from 5% to 20% of your home or property's appraised value.

Search for a Mortgage Advisor online. Enter your city, province or postal code, then select your language. Choose an advisor from the search results, then review the profile, send an email or request a phone call. Find a Mobile Mortgage AdvisorOpens a new window in your browser. .

If you don't hear back from your Mortgage Advisor, call us at 1-800-669-5921 and choose option 1.

With a cash-back mortgage offer, in addition to the mortgage principal, you get a percentage of the mortgage amount in cash. The interest rates on these mortgages are higher than on some other mortgages. You may want a cash-back mortgage if you need money for expenses, such as new furniture, or repaying loans to cover closing costs.

To start your mortgage application, fill out the mortgage application and mortgage pre-approval form. A Mortgage Advisor will get in touch with you within 3 business days, discuss next steps and book a meeting at a banking centre, or at your home or office. For more information or to apply by phone, call us at 1-866-525-8622 or find a branchOpens a new window in your browser. .

Like standard mortgages, the CIBC Home Power Mortgage lets you borrow up to 80% of your home's appraised value. The CIBC Home Power Mortgage also offers competitive interest rates and gives you a payoff date. The minimum mortgage amount is $10,000, but there's no minimum if you transfer from another lender.

Learn more about the CIBC Home Power Mortgage.

The CIBC Home Power Plan line of credit is a variable-rate personal line of credit. You can borrow up to 65% of your home's appraised value and use as much or as little of the approved amount. A line of credit is flexible and always available to you. You can make principal and interest payments or interest-only payments. The minimum line of credit amount is $10,000. You may qualify for a mortgage loan as well as a line of credit under your CIBC Home Power Plan.

Learn more about the CIBC Home Power Plan Borrowing Solution.

With mortgage assumption, you take over, or assume, the seller's mortgage on the purchased property. You accept full responsibility to pay the mortgage according to the existing mortgage terms. You need the lender's approval before you can assume the seller's mortgage.

As the buyer, mortgage assumption may be a good option for you if interest rates are higher than the existing mortgage on the closing date.

Mortgage assumption may be a good option for the seller if they're selling their home before the mortgage maturity date and not getting a mortgage on a new property. Mortgage assumption helps the seller avoid prepayment charges. For more information, visit a banking centreOpens a new window in your browser. or book a meetingOpens a new window in your browser. .

Yes, we do. And you may not need a Canadian credit history either. If you received permanent residence status within the last 5 years, you could qualify for our newcomer mortgage package. For more information, go to mortgages for newcomersOpens a new window in your browser..

To find out if you qualify for a temporary foreign worker mortgage, go to mortgages for newcomersOpens a new window in your browser.. For more information, visit a banking centreOpens a new window in your browser. or book a meetingOpens a new window in your browser. .

Access your home equity with a mortgage or line of credit. Find out how much you may qualify for with our home equity calculator. For more information, call us at 1-866-525-8622 or find a branchOpens a new window in your browser. .

Learn about the CIBC Home Power Mortgage, CIBC Home Power Plan Borrowing Solution and the CIBC Home Power Plan Line of Credit.

If you have all your paperwork in order, you can complete a mortgage application and go through the approval process in just a few days. Learn how to finalize your mortgage. To apply by phone, call us at 1-866-525-8622.

If you use CIBC Online Banking^®or CIBC Mobile Banking^®:

Sign on with your login credentials
From the menu, choose "Customer Services"
Under Account Services, Mortgages and Loans, select "Change mortgage payment details"
Fill out the "Change mortgage payment amount" form

If you don't use CIBC online or mobile banking:

Use your CIBC debit or credit card to register for online or mobile banking, or
Call us at 1-888-264-6843

Your mortgage agreement outlines what changes you can make to your regular payment amount. We'll review your request with you before we make any changes.

Each mortgage has its own prepayment terms. A Mortgage Advisor can help you choose a mortgage with prepayment privileges that work for you. To find out about our different prepayment privileges, call us at 1-888-264-6843 or find a branchOpens a new window in your browser. . Learn more about mortgage prepayment.

If you use CIBC Online Bankingor CIBC Mobile Banking:

Sign on using your login credentials
From the menu, choose "Customer Services"
Under Account Services, Mortgages and Loans, select "Make a mortgage prepayment"
Fill in the "Mortgage prepayment" form

If you don't use CIBC online or mobile banking:

Use your CIBC debit or credit card to register for online or mobile banking, or
Call us at 1-888-264-6843

Your mortgage agreement outlines your mortgage prepayment privileges. We'll review your request with you before we make any changes.

Refer to your mortgage agreement. It sets out if you need to pay a prepayment charge, and how it's calculated. You'll pay the prepayment charge plus the principal and interest owing the day you pay off the mortgage. Estimate your prepayment charge with our mortgage prepayment charge calculator. For more information, call us at 1-888-264-6843.

If you pay all or part of your mortgage early, you may have to pay an IRD, a type of prepayment charge. For fixed-rate closed mortgages, prepayment charges are usually 3 months interest or the IRD, whichever is greater.

The IRD is different for other mortgages, including variable-rate mortgages, open mortgages or any mortgage after the fifth year.

Your mortgage agreement explains how it's calculated. For more information, call us at 1-888-264-6843.

In most cases, you can change your payment frequency. You may have to pay an interest adjustment amount for the period between your last payment and the next one.

Example: If you switch from weekly to monthly payments, depending on the timing, you may owe interest on your first monthly mortgage payment.

To change your payment frequency, call us at 1-888-264-6843.

Yes, you'll pay less interest if you make accelerated weekly payments. If you make more payments, you'll pay down your principal faster and own your home sooner. The longer you owe money, the more interest you'll pay. Learn how to pay off your mortgage faster. To change your payment frequency, call us at 1-888-264-6843.

Mortgage payment dates are set when you finalize your mortgage, but you can often change them. For more information, call us at 1-888-264-6843.

To find out if you qualify to defer a mortgage payment, call us at 1-888-264-6843.

You could lose your home if you can't afford your mortgage payments. If you think you're going to miss a payment, tell your lender as soon as possible. They'll help you make a plan to keep your mortgage in good standing. If you don’t make arrangements, your mortgage will go into default. Then, your lender could start the process of selling your property to someone else. For more information, call us at 1-877-454-9030.

The cost of paying off your mortgage early is determined by your mortgage type, prepayment privileges and other factors, such as a cash-back repayment. Your payout includes the outstanding principal, interest, prepayment charges and fees, if applicable. Estimate your prepayment charges with our mortgage prepayment charge calculato r. For more information, call us at 1-888-264-6843.

Speak with your Mortgage Advisor to shorten your amortization period. Estimate how much you can save by changing your amortization period with our mortgage payment calculator.

Yes, CIBC has several easy-to-use tools and calculators to help you with the mortgage process:

We'll help you choose a CIBC mortgage and take care of the rest. We'll contact your existing lender and fill out the paperwork for you. You can switch to CIBC without any legal, appraisal or transfer-in fees¹.

Find a mortgage that meets your needs with our mortgage selector.

You'll get your mortgage statement between January and March each year. Keep it for future reference because you may need it for income tax purposes. Your mortgage statement outlines your rates, balances and payment details:

Total principal and interest payments made during the statement period
Principal balance at the end of the statement period
Principal and interest payment amount at the end of the statement period
Current interest rate at the end of the statement period
Remaining amortization at the end of the statement period
Property tax payment (if applicable)
Creditor insurance premiums

If you use CIBC Online Bankingor CIBC Mobile Banking:

Sign on using your login credentials
Select your mortgage account from your list of accounts
From the Account Details screen and the "View" drop-down menu, choose "Mortgage Loan – Annual Summary"
The summary provides information about your mortgage for the past 2 calendar years (if applicable)

If you don't use CIBC online or mobile banking:

Use your CIBC debit or credit card to register for online or mobile banking

For more information, call us at 1-888-264-6843.

For information about an online banking request, call us at 1-800-465-2422.

For information about our mortgage rates, call us at 1-800-465-2422 or go to mortgage rates.

When you sell your current home and buy a new one, you can sometimes transfer (or port) your mortgage to the new property. But not all mortgage terms are portable and conditions apply.

For more information, speak to a Mortgage Advisor or call us at 1-888-264-6843.

It's time to renew your mortgage when you get a renewal package, about 30 days before your mortgage ends. The package includes mortgage product offers, terms and other options. This is a good time to review your needs and savings options. For more information, call us at 1-866-321-3639.

You may be able to renew your mortgage before the end of the term, depending on your mortgage. Prepayment charges may apply. For more information, call us at 1-866-321-3639.

No, CIBC doesn't charge any administrative fees for renewing a mortgage.

After you sign on with your login credentials, you can access your mortgage number and principal balance. The balance includes all payments to date, but doesn't include accumulated interest, fees or property taxes. If you select your mortgage, you can review more account details like maturity date and remaining amortization.

Only you can access accounts registered in your name. Guarantors can't access any of your banking details or mortgage information.

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