Market Commentary
CIBC Cashback Mortgage Can Cost you Thousands !
December 8, 2011 | Posted by: Francine Tracey
Here's the condition we read today in a CIBC (branch) mortgage clause that a client mistakenly signed without getting advice from a good mortgage broker: 7 year term at 4.6% with a 2 % cashback. This is a high rate today, client would like to refinance. But if they refinance at any time during this mortgage they get a full penalty of 3 % cashback, plus interest differential penalty resulting in a total penalty in year 2 of the mortgage of over $32,000 on a mortgage of $372,000. This is entirely unnecessary and the client should have gotten better advice from an independent broker who can eagle eye this type of hidden cost. READ ALL OF YOUR PAPERWORK, and if you don't have time to read it send it to a mortgage broker to review it for you. We will do this service for you for free, and then we will find you the type of terms you are looking for without the hidden costs.