CIBC Mortgage Rates | All There Is to Know Before Making a Decision

August 17, 2021 | Editorial Team

CIBC Mortgage Rates

If you live in Canada, you have likely heard of the Canadian Imperial Bank of Commerce (CIBC). CIBC is one of the Big Five banks in Canada, along with BMO, Scotiabank, TD, and RBC. Although CIBC started in Canada, the bank now has global operations and over 11 million customers (see our more detailed overview of the bank).

Along with great products like chequing accounts, saving accounts, and credit cards, CIBC also offers competitive mortgage rates. So, if you live in Canada and you’re looking for CIBC mortgage rates, you’ve come to the right place! On the other hand, that shouldn’t stop you from looking at the mortgage rates on offer in other top banks, namely Scotiabank, True North, and TD Bank. Now, let’s look at the various mortgage products CIBC offers and find out which one is the best for you.

CIBC Currently Offers Mortgage Rates

Here are the current posted rates that the Canadian Imperial Bank of Commerce is offering.

CIBC fixed rates (closed)

  • 1 year – 3.19%
  • 2 years – 2.89%
  • 3 years – 3.59%
  • 4 years – 4.24%
  • 5 years – 4.79%
  • 7 years – 4.90%
  • 10 years -6.09%

CIBC fixed rates (open)

  • 6 months – 7.25%
  • 1 year – 6.35%

CIBC High-Ratio Mortgage

  • 5-year fixed closed – 4.79%
  • 5-year variable flex – 3.00%

CIBC variable flex mortgage

  • 3 years – 2.45%
  • 5 years – 2.45%

CIBC variable rate open mortgage

  • 5 years – 4.25%

These are simply the current posted mortgage rates on the CIBC website. It is possible to obtain a lower rate from CIBC if you talk to someone at the bank, take advantage of their special offers, or work with a mortgage broker. For example, you could get 5% cashback with some of the CIBC mortgage rates.

If you are unsure about which type of mortgage rate to go with, check out the CIBC mortgage calculator. or the one we provide here for you at It will help you determine which of the CIBC mortgage rates makes the most sense for your financial situation. Alternatively, you can make an appointment with a CIBC mortgage advisor. They will be able to discuss your mortgage options in greater detail.

5-Year Fixed Rates: What You Need to Know

What Are 5-Year Fixed Mortage Rates?

A 5-year fixed mortgage rate is when your mortgage’s interest rate is the same for the first five years of your term. After five years, you can renew your mortgage, but you will likely receive a new rate. If posted rates have gone up, your new mortgage rate will go up as well. At this point, you can continue with your lender, or you are free to search for a new one as your term has ended.

The benefit of a 5-year fixed-rate mortgage is that you will be able to budget for the next five years. Your mortgage rate can’t go up or down during the five years, so you will know exactly how much you will be paying.

5-year fixed-rate mortgages also tend to be cheaper than longer terms, such as ten-year fixed rates. This is because the bank or lender could be losing money by giving fixed-rate terms. If the rate goes up over the five years, they can’t charge you more. So, 5-year fixed-rate mortgages are a good, affordable long-term option.

On the other hand, 5-year fixed-rate mortgages can also be negative. If, for example, posted rates go down during your term, you cannot benefit from it. You will have to continue paying your fixed rate regardless of how much lower posted rates are.

How Much Can I Save Comparing 5-year Fixed Rates?

CIBC offers a range of 5-year mortgages from fixed rates to variable-rate mortgages. The CIBC variable rate open mortgage is 4.25% for five years. The CIBC fixed-rate closed mortgage, however, is 4.79%. In this case, you would not be saving anything by choosing a 5-year fixed rate over the 5-year variable rate mortgage.

If you wanted to compare the 5-year fixed-rate with other fixed mortgage rates at CIBC, you could save more. For example, the 5-year fixed interest rate is 4.79%. The 10-year one, however, is 6.09%. So, in this scenario, you would be saving 1.3%.

Why are Fixed Rates Different to Variable Rates?

Fixed rates and variable rates are two different types of interest rates. They can be applied to a number of things, not just mortgages. Fixed-rate mortgages, however, are when a bank or lender agrees to a certain rate for a certain time. For example, if you have a 5-year fixed-rate mortgage and you agreed to 4.15%, you will pay 4.25% for the whole five years. Your rate will not fluctuate even if market rates do.

On the other hand, variable rates will fluctuate during your mortgage term. This is because variable rates are based on the market interest rate at the time. For example, the CIBC variable rate for five years is currently 4.25%. This rate could either go up or down during your term, and you have no control over it.

CIBC offers both types of rates, so choosing which one is the best for you is your choice! A CIBC associate can help you decide if you’re not sure. They can even help you get pre-approved for a mortgage. The interest rate they offer you will be guaranteed for 120 days, so there is no pressure to decide right away.

Are 5-Year Mortgages Better Than Other Mortgage Terms?

5-year mortgages tend to be a good middle-ground for new homeowners. It is a long-term mortgage, but not too long-term that you feel stuck. Five years is a good amount of time into the future that you can budget and plan your finances accordingly. Once you get a better feel for how much it costs to run your house, you could commit to longer terms.

As CIBC offers five different types of mortgages with a five-year period, you get a lot of options with this term length. It is important to remember, however, that five years is typically not enough time to pay off your home. This means once your five-year term is up, you will need to renew your mortgage with CIBC or a new lender.

Best Mortgage Rates: Tips

Be Aware of High Penalties

When you are looking at mortgage rates, Canada (see also mortgage rates in Ottawa and Calgary), you may have come across prepayment penalties. This prepayment penalty will only come into effect if you pay off your mortgage before your term is up. What this penalty is will depend on the lender and at what point in the term you are paying off the mortgage. The earlier you pay it, the more you will have to pay in penalties.

So when you are looking for the best mortgage possible, take a look at the repayment terms. You don’t want to go with a lender who is so restrictive that they won’t let you repay your mortgage. Nor do you want to go with a lender who will charge you an arm and a leg if you want to repay your mortgage.

Be Mindful of Refinance Restrictions

Many people choose to refinance their mortgage if they want to shorten their term or get a lower interest rate. This may not be possible in some cases if your lender imposes refinance restrictions. For example, high prepayment penalties could be a restriction when refinancing.

You will also need to have at least 5% to 10% of the equity in your home to refinance your mortgage. Similarly, you must have a good credit score with very little debt; otherwise, you will not get approved for refinancing.

Finally, most lenders will charge a fee for refinancing. It is important you ensure you know what all the refinance restrictions are before you agree to take out a mortgage.

Is Mortgage Blending Allowed?

Mortgage blending is combining your existing mortgage rate with a new mortgage rate. This blends the two rates into a new mortgage rate that is somewhere in the middle. Mortgage blending can be confusing, but it is allowed. When you blend two mortgages, you are still keeping your original one. This means you can get a lower interest rate on your mortgage without paying any prepayment penalties.

There are two different types of mortgage blending: blend and extend or blend to term. Blend and extend is when you blend two mortgage rates and extend the term of your original mortgage. Blend to term is blending the mortgage rates but sticking with your original term.

Mortgage blending is good for obtaining a lower interest rate without paying penalties or for accessing equity.

Are There Collateral Charges?

A collateral charge mortgage is when you can borrow more against your mortgage without the need to refinance. With a collateral charge mortgage, you cannot change lenders during your term, or you will have to pay legal fees. Most banks or lenders give you the option of a collateral charge mortgage or not. Some, such as TD and Tangerine, only offer mortgages with collateral charges.

The benefit of collateral charge mortgages is that you can borrow more money during your term without refinancing. The downfall is that you cannot switch lenders to obtain a lower interest rate without paying steep fees. It is thus important to decide beforehand whether you want a collateral charge mortgage or not. If not, you will need to go with a bank or lender that offers other mortgage types.

CIBC Mortgages: Frequently Asked Questions

What does CIBC stand for?

CIBC stands for the Canadian Imperial Bank of Commerce (find out more about its name, origins and business model here).

Can I get pre-approved for a mortgage with CIBC?

Yes, you can apply for a pre-approved mortgage certificate online, over the phone, or in the bank. The service is free, and you will not be obligated to apply for a mortgage with CIBC. You will receive a guaranteed interest rate for 120 days once you get your certificate.

What is the difference between an open mortgage and a closed mortgage?

With an open mortgage, you can pay it off whenever you want without having to pay a prepayment penalty. Due to this freedom, open mortgage rates tend to be higher than closed mortgage rates. CIBC offers both types of mortgage.

Can you get a farm mortgage with CIBC?

Yes, CIBC has farm and agricultural mortgages for any farmers in Canada.

Is there a mortgage calculator from CIBC?

CIBC has a variety of mortgage calculators for new and existing customers to use. They are the following:

  • Rent vs. own calculator
  • Home equity calculator
  • Mortgage affordability calculator
  • Mortgage payment calculator
  • Mortgage selector
  • Mortgage prepayment calculator

What do I need to qualify for a mortgage with CIBC?

When you are applying for a mortgage with CIBC, you need a few documents to ensure you meet eligibility requirements. First is a document that shows your income and employment. The second is a certain amount of equity in your property. The third is enough income to pay for your mortgage payments. If you don’t meet these terms, you may still be able to get a mortgage if you have a guarantor.

What is the minimum down payment CIBC requires?

The minimum down payment required by CIBC depends on where in Canada you live. It ranges from 5% to 20% of your home’s appraised value.

What are cash back mortgage offers from CIBC?

Cash back mortgage offers from CIBC allow you to get a percentage of the mortgage amount in cash. Cash back mortgages are good for those who need the money for their expenses. Cash back mortgages tend to have a higher interest rate.

Can you apply for a mortgage with CIBC online?

You can start your CIBC mortgage application online and get pre-approved. Once that is done, however, a CIBC mortgage advisor will call you to schedule an in-person meeting.

How long does it take to apply for a CIBC mortgage?

If your paperwork is done correctly and everything is in order, it is possible to apply and get approved for a CIBC mortgage in a few business days.

The Bottom Line

As CIBC is one of the biggest banks in Canada, you know they are reliable. The fact that they have 11 million customers worldwide confirms that fact. CIBC has a number of great products available, including a variety of mortgage offerings. Whether you are looking for fixed or variable rates, closed or open mortgages, CIBC can help. If you’re interested in learning about other big banks you can read our article comparing CIBC vs RBC here.

CIBC offers competitive rates for their mortgages and often offer special rates to loyal customers. If you already bank with CIBC, it may make sense to get your mortgage with them as well. This will help keep all your finances in one place, making them easier to keep track of.

If you aren’t sure about what kind of mortgage you need, using the free mortgage calculator CIBC provides can be helpful. You simply need to input the amount you need for your mortgage, the potential type and length. The calculator will then show you what monthly payments would be. This will tell you whether or not you can afford that type of mortgage and length.

CIBC has a great team of mortgage advisors as well if you prefer to talk to someone in person. Simply call CIBC, request a call, or book an appointment with a mortgage advisor, and you can get started. Why not join CIBC’s 11 million customers and get a competitive and affordable mortgage today?