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(NC)—What's
that? You hate negotiating? Couldn't negotiate yourself
out of a wet paper bag, you say? When it comes to mortgages
at least, you won't have to.
With
mortgage rates still relatively low and competition fierce,
many financial institutions have introduced mortgage offers
with up front discounts on the rate, so you don't have to
worry about negotiating the rate down.
These
discounts are available with a variety of terms and types
of mortgages. Financial institutions are offering discounts
on both fixed rate mortgages (where the interest rate remains
constant for the duration of the term) and on variable rate
mortgages (where the interest rate fluctuates with the prime
rate).
Split-level
discounts can also be given. These are mortgage offers with
an introductory or promotional discount for the first few
months, followed by a smaller, but still significant, discount
for the remainder of the mortgage term. An example would be
CIBC's Better Than Prime Mortgage and Better Than Posted Mortgage.
To
illustrate, their Better Than Prime Mortgage is a 5-year closed,
variable rate mortgage with an introductory discount of 1.01%
off CIBC prime rate for the first 9 months of the term followed
by a rate of 0.25% below CIBC prime rate for the remainder
of the 5-year term.
If
you are looking for a fixed rate product, the Better Than
Posted Mortgage has introductory discount of up to 2.01% off
their posted rate for the first 9 months of the term followed
by up to 1.00% off their posted rate for the remainder of
the term.
While
the interest rate is an important factor when shopping for
a mortgage, it is not the only consideration. Other things
to consider when choosing a mortgage include the length of
mortgage term; whether the mortgage is open or closed; options
for cash back or rewards points; the prepayment privileges;
and how easy or difficult it is to break your mortgage term,
if you need to. These are all questions for your Personal
Banker and should be asked as soon as you are ready to buy
a home.
More
information is available from your local CIBC branch, by calling
1 800 465-CIBC (2422) or visiting www.cibc.com.
Products
and their features may change at any time. This is a general
description only. For more information and product terms and
conditions call 1 800 465-CIBC (2422).
Source
News
Canada
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