Real Estate

CIBC Early mortage renewal offer should i Take it?

  • Last Updated:
  • Apr 28th, 2019 8:31 am
[OP]
Newbie
May 3, 2017
13 posts
4 upvotes
Toronto

CIBC Early mortage renewal offer should i Take it?

CIBC just offered me 3 year fix early renewal fixed rate at 3.04% with no cost. I have variable rate with them right now.

Should I accept this offer from CIBC? Or should i wait.... and maybe Bank of Canada will drop the rate in the future?

Is it always no cost when switching from variable to fixed at banks anytime or those offers are just one time promotions?
2 replies
Deal Addict
Jan 13, 2014
1354 posts
396 upvotes
Calgary
bananae wrote:
Apr 26th, 2019 4:28 pm
CIBC just offered me 3 year fix early renewal fixed rate at 3.04% with no cost. I have variable rate with them right now.

Should I accept this offer from CIBC? Or should i wait.... and maybe Bank of Canada will drop the rate in the future?

Is it always no cost when switching from variable to fixed at banks anytime or those offers are just one time promotions?
Hi, that is the standard renewal rate right now and comparative to the other bank. I would also look at the cashback offer of 5% and dumping money back to the mortgage making your effective rate of 2.94%. Just a thought.
Sr. Member
May 3, 2013
599 posts
160 upvotes
Toronto
From experience, switching to fixed rate should not incur any cost to you. What the bank is offering in term of early renewal is they won't charge you any penalty for early renewal. Without this early renewal "offer", if you wanted to change your mortgage terms (ie change to a 3yr mortgage prior to end of the current mortgage term), you will have to pay interest penalty. They are offering this early renewal at no cost now (ie no interest penalty).

Their main intent is to lock you in for another mortgage term before the current term expires. Sometimes, consumers will shop around for better rates and when their mortgage term is up, jump ship. In order to retain customers, lenders will offer early renewal option with somewhat competitive terms.

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