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10 Mar

CIBC 1.99% teaser mortgage rate

General

Posted by: Kevin Carlson

I saw an ad on my Facebook newsfeed about one of Canada’s retail banks offering a 1.99% mortgage rate. Sounds great, right? Well, let’s read the fine print, check the math and find out.

You get 1.99%… for the first 9 months only. Then it gets boosted up to 2.83% for the next 39 months for a total of 4 years.

Today I have a 4 year fixed rate of 2.59% for the entire 4 years.

Based on a mortgage of $300,000.00 here is the interest costs for each over the 4 year term…

Teaser 1.99% / 2.83% = $29,945.45

Broker discount 2.59% = $28,447.56

Savings = $1,497.89

If it sounds too good to be true folks….