Attn: Firstline mortgage clients… beware CIBC brand renewal offer!

THINK OUTSIDE THE BOX:  Make sure you have all the information.  Check with your mortgage broker prior to signing  that renewal offer.

In June 2012, CIBC announced they would close Firstline Mortgages. All existing Firstline mortgage clients would be offered a CIBC brand mortgage renewal.

Hey, did anybody catch that?  “…..offered a CIBC brand mortgage renewal.”   This means your Firstline mortgage CANNOT be renewed into a Firstline brand because the brand is being discontinued.

In fact, in 2015, CIBC was sending all upcoming renewals a ‘Special CIBC Early Renewal Rate Offer’.  My first piece of advice…If you get this, don’t sign it without reviewing with your Mortgage Broker.  

The offer was/is being sent out 5 months prior to the renewal date.  The strategy is to entice clients by saying this ‘Early renewal rate offer will expire in 60 days’.    The rate may even seem attractive because it’s lower than anything CIBC offers to their regular customers (nice, huh?  offer a lower rate to non-CIBC customers.  how does that feel if you’re an existing CIBC customer?).

But HOLD ON.   It’s NOT the best rate available on the market.  It’s not even the best mortgage.   There are better rates and PRODUCTS out there!

The slick marketing is trying to get Firstline customers to switch into CIBC brand products with a simple signature.  That means you would now be obligated to CIBC bank’s terms and conditions… and worst of all, their INFLATED PREPAYMENT PENALTY calculation.   In case you are unfamiliar with how this works, I suggest you read this.

Here’s my recommendation to all Firstline Mortgage clients.  Call your Mortgage Broker (if you haven’t already been contacted by them) and shop around.   There are better ‘BRANDS’ available with better rates, terms and conditions.

Steve Garganis      February 16, 2016

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