Real Estate

TD vs CIBC mortgage, which is better?

  • Last Updated:
  • Aug 16th, 2019 2:20 pm
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[OP]
Newbie
Jul 3, 2016
15 posts

TD vs CIBC mortgage, which is better?

Hi all! Thanks in advance for your help! First time home buyer here!

- What is the purchase price? $945k detached house
- How much is the down payment? 375k
- Where is the property located? Port Moody BC
- When is the closing date? Sept 25, 2019
- Will the property be owner-occupied or a rental? Owner
-Annual combined pre-tax income ($108,000)


- Approved by TD for 570k at 2.7 5 year fixed 25 year amortization + $2k cashback
-Approved by CIBC for 580k at 2.69 5 year fixed 25 amortization + 2k cashback
- Contacted True North Mortgage, they are useless cant match bank rates at all
- Contacted another broker that uses First Canadian- cant match mortgage amount

Still not sure about TD vs CIBC, or whether there are other choices. Is TD a lot more costly come renewal time to switch to another lender vs CIBC? Which bank offers more competitive renewal rates historically?

Thanks
12 replies
Deal Addict
User avatar
Jan 2, 2012
3084 posts
950 upvotes
Toronto
ronragus wrote:
Aug 15th, 2019 2:11 pm
Hi all! Thanks in advance for your help! First time home buyer here!

- What is the purchase price? $945k detached house
- How much is the down payment? 375k
- Where is the property located? Port Moody BC
- When is the closing date? Sept 25, 2019
- Will the property be owner-occupied or a rental? Owner
-Annual combined pre-tax income ($108,000)


- Approved by TD for 570k at 2.7 5 year fixed 25 year amortization + $2k cashback
-Approved by CIBC for 580k at 2.69 5 year fixed 25 amortization + 2k cashback
- Contacted True North Mortgage, they are useless cant match bank rates at all
- Contacted another broker that uses First Canadian- cant match mortgage amount

Still not sure about TD vs CIBC, or whether there are other choices. Is TD a lot more costly come renewal time to switch to another lender vs CIBC? Which bank offers more competitive renewal rates historically?

Thanks
Check if they will register the loans as collateral charges or not. From what I've heard, TD does this exclusively. Not sure about CIBC. This means more legal fees when you eventually try to switch lenders.

Also talk to a mortgage broker here and see if they can beat the rates/terms.
Deal Addict
Jan 13, 2014
1316 posts
372 upvotes
Calgary
I can answer CIBC as i work for them. Are you getting a mortgage or a Home power plan? the home power plan would have a LOC on it and that would be collateral charge. Straight cibc mortgage will be a standard charge. CIBC has better prepayment options (double up on payments but TD might have better annual prepayment as cibc is 10%). Good luck and beautiful place to buy a house!
Deal Addict
Jan 13, 2014
1316 posts
372 upvotes
Calgary
Also at renewal time CIBC and TD will both match outside competition to keep your business so thats a bonus.
Deal Addict
Dec 4, 2016
1268 posts
507 upvotes
Is 5.2x pre-tax combined income easy to get with the Big 5? Also, how does the 2k cash back translate to effective rates? Or is this just because BC has super low property taxes?
Jr. Member
Nov 26, 2012
106 posts
76 upvotes
Toronto
TD gave me a 2.6% 5 year fixed, 25 year amortization and 2k back. Try getting that. Prepayment: 15% annually plus up to double payments.
Member
Aug 16, 2011
338 posts
189 upvotes
OTTAWA
@masarwar your comment regarding "Also at renewal time CIBC and TD will both match outside competition to keep your business so thats a bonus."

Outside competition meaning only the big 5 or also through the broker channel where they are offering 2.49% or even less depending on insured or uninsured for 5 years these days?
Sr. Member
Dec 4, 2004
567 posts
271 upvotes
GTA
Jeremyl007 wrote:
Aug 16th, 2019 10:30 am
@masarwar your comment regarding "Also at renewal time CIBC and TD will both match outside competition to keep your business so thats a bonus."

Outside competition meaning only the big 5 or also through the broker channel where they are offering 2.49% or even less depending on insured or uninsured for 5 years these days?
Typically it will have to be an advertised rate, or a rate offer in writing.
Sr. Member
Feb 21, 2010
834 posts
227 upvotes
Scarborough
CIBC penalty calculations are the worst in big 5. If you are taking a HELOC product and your ratios are good, CIBC can start the heloc with $1 limit. TD sometimes will start HELOC with only 25K limit.
Newbie
Nov 14, 2016
57 posts
14 upvotes
Toronto
niche54 wrote:
Aug 15th, 2019 8:38 pm
TD gave me a 2.6% 5 year fixed, 25 year amortization and 2k back. Try getting that. Prepayment: 15% annually plus up to double payments.
Wow that is a really rate. Did you have to put a 20% down payment if you dont't mind me asking? Also, did you have to bring an offer from another bank at 2.6% for TD to match it?
Jr. Member
Nov 26, 2012
106 posts
76 upvotes
Toronto
toradian wrote:
Aug 16th, 2019 11:20 am
Wow that is a really rate. Did you have to put a 20% down payment if you dont't mind me asking? Also, did you have to bring an offer from another bank at 2.6% for TD to match it?
Yes more than 20% down. I didn’t have competing offers as no one else matched that.
Deal Addict
Jan 13, 2014
1316 posts
372 upvotes
Calgary
Jeremyl007 wrote:
Aug 16th, 2019 10:30 am
@masarwar your comment regarding "Also at renewal time CIBC and TD will both match outside competition to keep your business so thats a bonus."

Outside competition meaning only the big 5 or also through the broker channel where they are offering 2.49% or even less depending on insured or uninsured for 5 years these days?
Generally the big 5, we had luck with getting matched rates from brokers but that is very unusual or an exception.
[OP]
Newbie
Jul 3, 2016
15 posts
masarwar wrote:
Aug 15th, 2019 2:51 pm
I can answer CIBC as i work for them. Are you getting a mortgage or a Home power plan? the home power plan would have a LOC on it and that would be collateral charge. Straight cibc mortgage will be a standard charge. CIBC has better prepayment options (double up on payments but TD might have better annual prepayment as cibc is 10%). Good luck and beautiful place to buy a house!
masarwar, would I be able to start with a standard charge mortgage, then upon renewal request to move to the collateral charge mortgage?

Thanks

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