At the beginning of March, 2011, CIBC launched their new wealth builder product for CIBC mortgages that carried either a 5 year fixed interest rate term or a CIBC variable flex mortgage term.
The main benefits of the program can derived in two different ways.
Either a borrower can receive cash back on closing and on a quarterly basis where the cash earned through the program would be paid directly into the borrower’s CIBC account, or….
Receive a 5 basis point interest rate reduction, no upfront cash back, but quarterly cash back installments.
Wealth Builder Option 1
Wealth Builder Option 2
The keys to receiving the most benefit from the program is to sign up and stay with a one of the 5 year qualifying mortgage products.
If you don’t have a high degree of certainty that you would be repaying the mortgage early, then this is not likely a good fit as the prepayment penalties related to the program would offset the value received.
However, if you’re looking for a 5 year mortgage term, this is a great product to consider.
Once you add in the cash back you will receive over time, the effective interest rate becomes very attractive, plus you receive periodic cash back payments that go right into your bank account to be used for whatever you decide.
If you’d like to learn more about the CIBC Wealth Builder Program provided through the Mortgage Centre, please give us a call and set up a time to speak with a member of our team.