The following Mortgage Comparison Chart is only a brief method of analysis and you should consult with a mortgage professional. Completing a chart such as the following will help an investor make more informative decisions regarding debt financing before purchasing a property.
Mortgage Comparison Chart
| Institution | CIBC | Scotia Bank |
|---|---|---|
| Mortgage | Better Than Prime Mortgage | Unlimited Rate Mortgage |
| Mortgage Features | Term: 5 years Closed Rate: Variable |
Term: 3 years Closed Rate: Variable |
| Characteristics | Rate: 1.01% below CIBC Prime for first 9 months, 0.25% below CIBC Prime rest of 5 year term. | Rate: 0.25% below ScotiaBank Prime Rate for full 3 year term. |
| Current Prime Rate | 6.25% APR | 6.25% APR |
| Current Rate on Mortgage | 5.24% (first 9 months)
6.00% (rest of 5 year term) |
6.00% (full 3 year term) |
| Amortization Period | Up to 40 years (additional insurance charges apply) | Up to 40 years (additional insurance charges apply) |
| Payment Frequency | Weekly, bi-weekly, semi-monthly, monthly | Weekly, bi-weekly, semi-monthly, monthly |
| Payments |
May fluctuate with changes in interest rates | Stay the same: if rates increase more of payment goes to interest, if rates decrease more of payment goes to principle |
| Flexibility |
Lock in to a closed, fixed rate mortgage with a term of 3 years or more without prepayment costs.
Prepay up to 15% of original mortgage amount annually without penalty. Original payments may be increased up to 100% during the term without penalties. |
Early renew at any time to any closed term, fixed rate mortgage product with term of 3 years of longer with no interest penalty.
Prepay up to 15% of original mortgage amount annually without penalty. Original payments may be increased by 15% each year for current term without penalties. |
| Special Deals |
May choose between either 0.25% Below Scotiabank Prime Rate or Cash back of 1% of loan amount with Scotiabank Prime Rate
* with cash back you must repay the prorata amount provided if the mortgage is paid out, assumed, transferred or renewed before maturity. |
