CIBC mortgage review

When shopping for a mortgage in Canada, you want to ensure you’re getting the right mortgage for your needs and not just the best rate. As one of Canada’s largest mortgage lenders, CIBC offers many different mortgages, including loans for newcomers to Canada. Learn more about what CIBC has to offer.

About CIBC

CIBC is the fifth-largest bank in Canada and one of the country’s Big 6 Banks. Its market cap is over $61 billion, and its approximately 48,000 employees service over 14 million clients. CIBC is also one of Canada’s largest mortgage lenders, with a residential mortgage and home equity line of credit portfolio close to $300 billion as of 2023.

Who is a CIBC mortgage best for?

CIBC mortgage products are suitable for borrowers across Canada with solid credit and newcomers to Canada who can qualify under one of the bank’s newcomer mortgage programs. If you have recently become self-employed or struggle with poor credit, including bankruptcy, you will be better off going through a mortgage broker who can help you find a lender with more flexible lending criteria. 

CIBC mortgages: Product and features overview

Here are the products offered by CIBC.

1. CIBC mortgage for newcomers to Canada

CIBC offers three distinct programs designed for newcomers to Canada. To qualify for one of these programs, you must have received landed immigrant or permanent resident status within the previous five years or be a foreign worker with a Canadian work permit term of 12 months or longer. 

2. CIBC Newcomer to Canada Program Mortgage

You may qualify under this program if you have a limited history in Canada but have sufficient income to afford a mortgage. 

3. CIBC Newcomer to Canada PLUS Program Mortgage

You may qualify under this program if you are a newcomer to Canada or a Canadian citizen who has returned permanently to Canada after living abroad. You don’t have to have an established credit history to qualify, but you must work to establish a career in Canada. 

4. CIBC Foreign Worker Program Mortgage

This program is for those with a Canadian work permit. You do not need a Canadian credit history to qualify. 

5. CIBC Home Equity Line of Credit (HELOC)

CIBC offers a home equity line of credit (HELOC) called a CIBC Home Power Plan. It combines the structure of a mortgage with the flexibility of a revolving line of credit. 

Borrowers can use a Home Power Plan to borrow up to 80% of the value of their home. However, the line of credit component cannot exceed 65% loan to value (LTV). As you pay down the mortgage principal, it becomes available credit that you can use for various purposes, including a home renovation, major purchase or even debt consolidation. 

For example, let’s say you have a $300,000 home and take out a Home Power Loan for $240,000 (80% LTV). When the principal balance drops below $195,000 (65% LTV), you begin to accumulate available credit. So, when your mortgage balance reaches $150,000, you will have a $45,000 credit limit. As with any home equity line of credit, various legal requirements and fees will apply. 

6. CIBC mortgage refinancing

Mortgage refinancing refers to replacing your existing mortgage with a new one. The new mortgage will have different terms, such as the loan or payment amount and the interest rate. You can refinance your mortgage with CIBC by resetting the terms of your existing mortgage or taking out a home equity loan or line of credit.

A mortgage refinance may be beneficial if you want to access more of your home equity or get a better interest rate.

But you must be cautious, as a mortgage refinance may not always be in your best interest. 

Ideally, you will refinance at a time when mortgage rates are lower than your existing rate. Otherwise, you may end up paying more money over the long run. You must also factor in any prepayment penalties associated with getting out of your current mortgage early. 

If you have a mortgage with CIBC and are wondering if refinancing makes sense, you’ll want to speak with a mortgage advisor who can provide the best advice for your situation. 

7. CIBC mortgage renewal

Most lenders, including CIBC, begin the mortgage renewal process several months before your current mortgage term expires. This means that, while you may not receive your renewal paperwork until 30 days before maturity, you may be able to renew your mortgage up to four or five months early without paying a penalty. 

CIBC recommends that you start thinking about your mortgage renewal early and encourage clients to reach out to a CIBC mortgage representative to discuss options.

One reason it’s important to plan ahead is to leave extra time in case you decide to change the terms of your mortgage at renewal, e.g., refinance your mortgage. 

Understanding CIBC’s mortgage pre-approval tools

CIBC offers the following mortgage pre-approval tools to help you save money while simplifying the approval process.

Mortgage affordability calculator: This calculator helps you determine a house price you can afford by factoring in your income, various expenses and the mortgage payment amount. 

Mortgage payment calculator: This provides you with a mortgage payment amount based on different interest rates and mortgage and down payment amounts. 

Rate-hold: One of the benefits of getting pre-approved is that CIBC can lock in an interest rate for you for up to 120 days. This is known as a rate hold, and it guarantees you a specific rate even if mortgage rates rise after you are pre-approved.  

CIBC mortgage pre-approval certificate: When CIBC pre-approves your mortgage application, they will provide you with a pre-approval certificate. You can take this document to a real estate agent to show them you are a qualified buyer. These days, most real estate agents will require you to provide a preapproval letter before they agree to represent you.

CIBC’s ease of application for a new mortgage

Gone are the days when you have to make multiple trips to your bank to apply for a mortgage in person. Of course, you can still do that if you wish, but many options are available these days. 

CIBC offers multiple ways to apply for a mortgage. You can start an application online within minutes and be paired with a CIBC mortgage specialist within one business day. You can also apply over the phone during business hours or by visiting a branch in person. 

It’s a more straightforward process than with most small credit unions, similar to other big banks and not quite as convenient as dealing with a mortgage broker. 

Mortgage brokers can get you approved remotely and can place your mortgage application with multiple lenders, saving you from having to shop around and compare. If you have a good broker, the process is generally much easier. Mortgage brokers deal with banks, credit unions, monoline lenders such as MCAP and First National and private mortgage lenders.

Customer satisfaction ratings from CIBC mortgage holders

Anecdotal evidence, based on online commentary, including threads on Reddit and other social media platforms, suggests that CIBC offers service levels similar to those of other major banks regarding mortgages. 

One complaint that I noticed multiple times that was specific to CIBC is that they charge higher mortgage prepayment penalties than some other lenders. One example that I verified is that CIBC uses its prime rate to calculate the prepayment penalty on variable-rate mortgages. TD, on the other hand, uses the customer's actual interest rate, which I verified using TD’s prepayment charge calculator. 

To understand what this means on a practical level, say a customer has a $150,000 variable-rate mortgage with CIBC at a 4.20% interest rate and decides to pay the mortgage in full. They will be subject to a three-month interest penalty, but the rate used to calculate the penalty will be CIBC’s prime rate. Let’s assume their prime rate is 5.00%. Their penalty would be approximately $1,870.00. 

If the mortgage were with TD, the customer’s prepayment penalty would be calculated using their 4.2% mortgage rate. In that case, their penalty would be closer to $1,570-$300 cheaper.

Pros and cons of using CIBC as your mortgage lender

CIBC is one of Canada’s largest mortgage lenders, holding over 13% of the Canadian residential mortgage market share as of Q2 2024. However, there can be advantages and disadvantages to getting a mortgage through a major bank like CIBC. Here are some pros and cons to consider.

Pros

• A wide range of mortgage options (fixed-rate, variable, open, closed, etc.)

• Flexible repayment options, such as increase your payment up to 100%, change your payment frequency or annual prepayment up to 20%

• Work with a dedicated mortgage specialist

• Rate-holds available for up to 120 days

• Prequalify online within minutes

• CIBC's strong financial standing can offer peace of mind

Cons

• You may need to meet in person, which can be inconvenient

• Less flexibility for non-traditional borrowers, e.g., self-employed, fluctuating income, credit issues

• You may need to meet in person, which can be inconvenient

• Potentially high prepayment penalties, if you have to pay off your mortgage early

Whether CIBC is the right lender for you will depend on your personal needs and financial situation, as well as whether you prefer the stability and resources of a large bank over potentially better rates from other lenders.

CIBC mortgage eligibility criteria

To qualify for a mortgage with CIBC, you’ll need to meet the following criteria: 

Borrower criteria

Down payment

While down payment requirements vary depending on the mortgage type, you’ll need a minimum of 5% down. For example, to purchase a $400,000 home, you would need to supply a down payment of at least $20,000. 

Credit score

At least one borrower (or guarantor) must have a credit score of 600 or higher to qualify for a high-ratio (CMHC) mortgage. CMHC may require a higher credit score for a conventional mortgage.

Income

Regardless of the mortgage type, CIBC requires borrowers to confirm income using documentation that is satisfactory to CIBC. This may or may not include one or more recent pay stubs, an employment letter or bank statements showing a history of direct deposits. 

Employment type and history

In addition to providing proper income confirmation, you must demonstrate employment stability to qualify for a mortgage. For example, you must not be in a probationary period with your employer. If you’re self-employed, you may need to prove that your business has been operating for at least two years. 

Debt service ratio

Debt service ratios determine how much of your pre-tax income is used to cover your housing costs and other debts, such as credit card or loan payments. Generally, your gross debt service ratio (GDS) should not exceed 39%, and your total debt service ratio (TDS) should not exceed 44%. Any variation from these limits would require exceptional CIBC and/or CMHC approval.  

Property criteria

Property location

Generally, CIBC requires that the property you buy be located in a built-up or populated area and connected to running water, sewer and hydro. You may have to obtain other financing if it does not meet these conditions. 

Property condition

Any property financed with a CIBC mortgage must be deemed structurally sound. This includes adequate plumbing, heating and electrical. CIBC may require a physical appraisal of the home as a condition of approval. 

How to apply for a mortgage with CIBC

You can start a mortgage application with CIBC in three ways: 

FAQs

Colin Graves Freelance Writer

Colin Graves Freelance Writer

Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.

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