Cibc Mortgages Pre Call Report

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•The most basic and important role of BoC is that it determines the Rate of interest (cost of borrowing money) for the banks. The banks are bound to give the loans at the interest rates that are fixed by the government. Now days due to high Interest rate the banks are receiving less demand from private sector. People also complain about banks giving high Interest rates loans.

•Another legal instruction that is given by the government is that no bank is allowed to leak out the personal information of any customer.

•Another legal liability on the bank is that they have to keep a fixed amount of their reserve with the BOC and with remaining reserves they have to do their business.

COMPANY KNOWLEDGE

SIZE AND REPUTATION

With the motto of being number one in customer relationships, CIBC is one of the Big Five Banks in Canada. The three services they offer are

- Retail and Business Banking

- Wealth Management

- Capital Markets

It supports values like, Trust, Teamwork and Accountability which form the basis of its strategy which covers:

- Focussing on client

- Innovating for future

- Simplifying our bank

CIBC is also committed to causes that matter to society. It invested more than 65 million in communities across Canada. It has three communities:

- CIBC Run for the Cure

- CIBC Miracle Day

- CIBC Youth vision

They are well established in Canada and around the world. https://www.cibc.com/en/about-cibc/corporate-profile/quick-facts.html

HISTORY

The Canadian Bank of Commerce (The Commerce) opened on May 15, 1867 in Toronto. The head office was on the corner of Yonge and Colborne. William McMaster, was the principal founder of the bank and its first president. McMaster founded the bank mainly as competition for the Bank of Montreal. He rapidly expanded the bank and its network of branches; by 1874 it had 24 branches, making it the largest bank headquartered in Ontario.

The largest merger happened on June 1, 1961. The Canadian Bank of Commerce And Imperial Bank of Canada merged and became Canadian Imperial Bank of Commerce (CIBC).

https://www.cibc.com/en/about-cibc/corporate-profile/history/story/growing.html

COMPANY POLICIES: CIBC has a separate set of policies for its suppliers. Anyone who is invited to contract with CIBC is provided with them. They are listed on their website under Corporate Responsibility. https://www.cibc.com/en/about-cibc/corporate-responsibility/to-our-suppliers/policies.html

GOVERNANCE PRACTICES: CIBC regularly reviews and changes its government policies, responding to both Canadian and US Government. The details about all the policies can be found on the website under Corporate Governance. https://www.cibc.com/en/about-cibc/corporate-governance/practices.html

PRODUCT KNOWLEDGE:

MORTGAGE:

If you want to buy a new home or renovate your old home and you don’t have the enough money to pay for full price mortgage is your only option. Mortgage is like almost any other loan which charges interest on top the purchase price. Therefore the cost of the mortgage will be more than the actual purchase price of the home. While buying a mortgage it is important to first understand the terms and conditions on which you are agreeing.

BENEFITS AND ADVANTAGES:(group, 1984-2017)

FIXED RATE MORTGAGE

ADVANTAGES

BENEFITS

Open

6 Months up to 5 years

You can prepay all mortgage or part of the mortgage at any time without any interest rate penalty.

It helps you to keeps your options open.

When interest rates are low, it allows you to go for a longer term or mortgage option.

Convertible

6 Months up to 5 years

It can be converted at any time into a closed term without penalty.

Gives you open options.

Allows you to lock-in to a longer term mortgage when rates are low.

Closed

6 months, 1 to 5 years 7 and 10 years.

You have a fixed interest rate for a particular length of term.

The mortgage rate and payment remain the same throughout the term, making budgeting easier.

Gives you satisfaction for a long period of time knowing that if rates go up, your payments stay the same.

VARIABLE RATE MORTGAGE

ADVANTAGES

BENEFITS

Variable Open

Interest rate changes with the fluctuations in the money market.

You can prepay your mortgage at any time without any interest rate penalty.

When you feel rates are low, it allows you to lock-in for a longer term or mortgage option.

Each time rates go down, more of your monthly payment is applied against the principal outstanding.

Variable Convertible

Interest rate changes with the fluctuations in the money market.

Can be converted at any time to another mortgage option throughout the term.

Keeps some options open.

Allows you to lock-in