CIBC Cash Back Mortgages
“CIBC Cash Back Mortgages Are A Great Refinancing Option”
CIBC cash back mortgages, available through our Mortgage Centre Brokerage, have a number of interesting features for those looking to refinance an existing mortgage.
Coming in both fixed and variable offerings, these products are designed to provide competitive mortgage terms as well as giving you cash in hand to either pay down the mortgage right away or to use the funds for other purposes.
For instance, with the variable mortgage option, the mortgage rate is priced at prime minus 0.50 and will provide 2% of the mortgage balance at closing in cash back to you for mortgage amounts under $400,000 and 3% for mortgage amounts over $400,000.
In this variable rate example, if you were to apply the cash back portion from a $400,000 plus mortgage against the outstanding balance immediately after closing, the effective rate of the mortgage would drop below prime minus 1.1%, making it one of the lowest cost products on the market.
And if you are looking for a debt consolidation through mortgage refinancing, or want to pull some equity out of your house for some other reason, the cash back option may also be very attractive to you.
With a mortgage refinancing, you can now only secure a mortgage up to 85% of the value of the property, down from 90% earlier this year.
So if you’re pushing against the 85% limit and still can’t get enough funds to meet your requirements, a cash back mortgage can provide additional capital to you and still keep you within the qualifying requirements. For instance, a 3% cash back bonus at closing of a $450,000 mortgage refinancing will provide you with $13,500 cash in hand to use as you see fit. This would be the same as an 88% loan to value mortgage in terms of the funds advanced to you.
On the fixed interest rate side, the cash back program will reduce the posted fixed mortgage rate by up to 140 basis points and also provide cash back on closing of 0.25%.
There are different terms and conditions that can apply to a particular scenario, so you’ll have to work through the numbers to see how this can work for your requirements.
This is a very interesting mortgage program that provides some interesting options to customers in terms of great rates and additional cash.
If you’d like to know more about the CIBC cash back mortgage programs available through The Mortgage Centre, I suggest that you give me a call and we’ll go through your particular requirements together.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel