Taking mortgage cash back is one of the cost-saving tricks for reducing mortgage costs, especially at a time when mortgage interest rates are on the rise.
It’s a common practice among the big banks to offer mortgage cash back as a way of attracting potential homebuyers.
The Canadian Imperial Bank of Commerce (CIBC) is not left behind in the game as it offers up to $3,000 competitive cash back on mortgage switches.
But who is eligible for the CIBC mortgage cash back? Is the cash back worth it? What are the alternatives to CIBC mortgage cash back?
In this article, you will find answers to all these questions and more in order to make an informed decision.
Table of Contents
CIBC Mortgage Cash Back
CIBC offers mortgage cash back to those that move their existing mortgage to it. The mortgage cash back ranges from $1,000 to $3,000 depending on the amount moved.
The following is the CIBC mortgage cash back rate per mortgage switch amount:
|Mortgage Switch Amount
|$750,000 and above
|$500,000 – $749,999.99
|$300,000 – $499,999.99
|$100,000 – $299,999.99
To put it in context, you will save up to $3,000 when you move a minimum of $750,000 mortgage amount to CIBC. Even though the $3,000 cash back is just 0.4% of $750k, it will still help in reducing your entire mortgage costs.
That said, you must meet the following requirements to qualify for the CIBC mortgage cash back:
- Move a minimum of $100,000 mortgage to CIBC by October 31, 2022
- Apply for a 5-year CIBC Variable Flex Mortgage or 4-year or greater CIBC Fixed-Rate Closed Mortgage
- Fund your mortgage within 120 days of application submission
- Have a personal CIBC chequing account (that’s where the cash back will be deposited)
When you meet the above requirements and other conditions that may apply, you will receive the cash back within 6 to 8 weeks of funding your mortgage.
If you’re ready to claim the CIBC mortgage offer, kindly contact a CIBC Mortgage Advisor through any of the following ways:
- Call 1-866-525-8622
- Request a call through this link
- Search for a mobile CIBC Mortgage Advisor through this link
Is the CBC Mortgage Cash Back Worth It?
You’re in the right position to answer this question. The truth is, any dollar you reduce from your mortgage payment contributes to your savings directly. And with up to $3,000 cash back from CIBC, you can’t go wrong with it.
While the CIBC mortgage cash back is attractive, you need to look beyond the cash back by considering other critical factors.
This means understanding the CIBC mortgage rates, APR, applicable fees and terms. Only then can you be able to tell whether it’s worthwhile claiming the CIBC mortgage offer.
The current posted rates of CIBC are on the high side compared to the rates of other mortgage lenders in Canada. CIBC currently charges a 6.49% posted rate on a 5-year fixed term and 5.45% on a 5-year variable term. These are among the highest in Canada.
Notwithstanding, CIBC outshines other mortgage lenders with competitive special mortgage rates and APRs as shown below:
|5-Year Fixed Mortgage
|5-Year Variable Mortgage
The bottom line is that the CIBC mortgage cash back offer is more suitable for individuals looking to save costs for the short-term.
RELATED: Best Mortgage Rates in Canada
Other CIBC Mortgage Offers for Homeowners
Besides mortgage cash back, CIBC also offers two major mortgage promotions under the Homeowners Banking Bundle and the CIBC Home Power Plan Line of Credit. Below is an overview of each of the offers.
Homeowners Banking Bundle Offer
The CIBC Homeowners Banking Bundle offer helps homeowners save up to 50% on monthly fees in an eligible CIBC chequing account.
To qualify for the CIBC Homeowners Banking Bundle offer, you must meet the following requirements:
- Have an eligible CIBC chequing account*
- Have a minimum of three additional eligible CIBC personal banking products
- Have one eligible CIBC product**
*The following table highlights the eligible CIBC chequing accounts and with their monthly fee discount rate:
|Monthly Fee Discount Rate
|CIBC Smart Account
|CIBC Smart Plus Account
|CIBC Everyday Chequing Account
|CIBC EverydayPlus Chequing Account (Discontinued)
**The eligible product must be from any of the following categories:
- Annual fee CIBC credit card/CIBC creditor insurance product (personal)
- CIBC borrowing product (personal)
- CIBC investment product (personal)
Besides helping you save 50% on monthly fees, the CIBC Homeowners Banking Bundle offer also gives you access to:
- Eligible mortgage
- Creditor insurance
- No-fee CIBC savings account
- Secured line of credit
- Eligible investment account and premium rewards credit card
Click here to learn more about the CIBC Homeowners Banking Bundle offer.
CIBC Home Power Plan Line of Credit Offer
CIBC also offers homeowners an introductory rate under the CIBC Home Power Plan Line of Credit. The introductory interest is 5.45% (equal to CIBC prime rate) and it lasts until March 5, 2023.
Frankly speaking, the CIBC introductory rate is not up to its name compared to other banks’ HELOC rates such as the Tangerine’s 5.35% rate.
Notwithstanding, the CIBC Home Power Plan Line of Credit introduction rate competes with the rates of other brick-and-mortar banks in Canada.
Whether you’re looking to renovate your home, buy a car, fund your child’s education or any other major purchase, you can take a loan from Home Power Plan Line of Credit based on your home equity.
Note that a $300 fee applies for property valuation. The minimum amount you can borrow is $10,000 and you can only borrow on residential properties.
In addition to other lending criteria, you must meet the following eligibility to qualify for the CIBC Home Power Plan Line of Credit offer:
- Sign-up for your first CIBC Home Power Plan by October 31, 2022
- Apply for the line of credit by December 31, 2022
Caveat: HELOC should be your last resort when looking for a loan as you can lose your property if you default payment.
Click here to learn more about the CIBC Home Power Plan Line of Credit offer.
Other Mortgage Cash Back Offers in Canada
As noted in the introductory part of this article, mortgage cash back is common among the big banks in Canada. Reputable online-only banks like Tangerine and Simplii Financial also offer competitive mortgage cashback as the big banks.
While banks have a common aim of offering mortgage cash back, they differ in terms of the cash back rates and terms.
In this section, you will learn about other mortgage cash back offers in Canada and their eligibility.
RBC Mortgage Cash Back
As the largest bank by market capitalization in Canada, the Royal Bank of Canada (RBC) is one of the leading providers of mortgage cash back in Canada.
Like CIBC, RBC also offers up to $3,000 mortgage cash back on mortgage switches. However, the cash back distribution structure varies among the two big banks. Below is the RBC mortgage cash back distribution schedule:
|Mortgage Switch Amount
|$1,000,000 and above
|$750,000 – $999,999.99
|$500,000 – $749,999.99
|$300,000 – $499,999.99
While CIBC requires you to move a minimum of $100k to qualify for the mortgage cash back, RBC requires you to move a minimum of $300k to qualify.
That being said, the following are the eligibility for the RBC mortgage cash back:
- Switch at least $300k mortgage amount to RBC by October 31, 2022
- Move the mortgage to a 5-year closed variable term or 4-year or greater fixed term of RBC
- Fund your mortgage within 120 days from the day RBC starts charging interest
- Have or sign-up for an eligible RBC personal account
In addition to the mortgage cash back, RBC also offers a switch fee waiver. The switch fee waiver covers all the fees RBC charges on switching a mortgage to it. The total value of the switch fee waiver is $4,100. This is the sum total of the following fees:
- $500 title insurance fee (up to $1,000 in Quebec and $700 in Atlantic provinces)
- $300 processing fee
- $300 discharge fee (not available in Quebec)
To get the switch fee waiver, you must move at least a $100k mortgage amount to RBC or $75k if you live in any Atlantic province. In addition, you must move your mortgage to a 5-year closed variable term or 4-year or greater fixed term of RBC.
Click here to learn more about the RBC Mortgage Cash Back offer.
Tangerine Mortgage Cashback
Tangerine is a household name in Canada for its low mortgage rates. The bank currently has a competitive 5-year fixed rate of 5.34% and a 5-year variable mortgage rate of 5.15%.
But unlike CIBC, the Tangerine mortgage cash back applies to new mortgage applications, not existing homeowners.
If you apply for a new mortgage on Tangerine, you could get up to $5,000 mortgage cash back depending on the mortgage amount. This is one of the highest mortgage cash back offers in Canada.
The Tangerine mortgage cashback starts from $2,000 on a new mortgage amount between $350,000 and $749,999. The maximum cash back of $5,00 applies to those with a mortgage loan of $750,000 and above.
To qualify for the Tangerine mortgage cash back, you must meet the following eligibility:
- Apply for a new mortgage with Tangerine by October 31, 2022
- Sign-up for at least a $350,000 mortgage with 25 years or lower amortization period
- Get a 5-year closed variable mortgage term or 5-year/greater closed fixed term with Tangerine
- Fund your mortgage within 120 days of application
- Have or open a chequing account with Tangerine (you will receive the cash back under this account within 30 days of mortgage funding)
If you already have a mortgage and want to move it to Tangerine, you will also save up to $1,300 on switch fees. Note that this type of offer is not currently available at CIBC.
To have the mortgage switch fees waived at Tangerine, you must meet the following eligibility:
- Move a minimum of $150k mortgage to Tangerine by October 31, 2022
- Get a 5-year closed variable mortgage term or a 3-year/greater closed fixed term with Tangerine
Simplii Mortgage Cash Back
Simplii Financial, the online banking division of CIBC, also provides up to $3,000 cash back on eligible mortgage switches.
However, the Simplii Financial mortgage cash back is only applicable to new residential mortgages not on existing mortgages.
But as with CIBC, the amount of mortgage cash back you get from Simplii depends on your mortgage amount as illustrated in the following table.
|$750,000 and above
|$500,000 – $749,999
|$300,000 – $499,999
|$100,000 – $299,999
All you need to qualify for the Simplii mortgage cash back is to apply for a minimum of $100k new residential mortgage with the bank Simplii by October 31, 2022.
Likewith CIBC, Simplii also has competitive special mortgage rates on 5-year fixed and variable terms.
Click here to learn more about Simplii Financial mortgages.
Note: Simplii Financial currently offers a higher promotional savings rate of 4.75% and a $350 cash bonus on its no-fee chequing account. Learn more here.
The Bottom Line
For obvious reasons, the CIBC mortgage cash back is one of the best mortgage offers in Canada.
And the fact that the offer is backed by underlying special mortgage rates means you will save a significant amount moving your mortgage to CIBC.
But before finalizing, I suggest you compare the CIBC mortgage offer with other competitive offers to choose from the best option.
When comparing other mortgage offers, you should look beyond the cash back rate to consider the interest rates, APRs and mortgage terms.
That brings us to the end of this article. If you need more clarification, kindly drop your concerns in the comment section or contact our team at [email protected].