Compare Simplii Financial Mortgage Rates in Canada
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Compare Simplii Financial Mortgage Rates in Canada
Simplii Financial is a direct bank and the digital banking arm of the Canadian Imperial Bank of Commerce (CIBC). Launched in 2017, by November 2021 the bank had almost two million clients. In this article we break down the main mortgage products and rates offered by Simplii and help you learn how to compare these to some of the biggest lenders in Canada.
Key Highlights
- Simplii Financial is a digital bank backed by CIBC, with over 2 million customers in Canada.
- Currently, Simplii Financial’s fixed rate 5-year mortgage rates are 5.29% for fixed-rate mortgages and 5.10% for variable mortgages.
- Simplii Financial is a digital-first banking trademark that is owned and operated by CIBC, and it does not have physical branches in Canada.
Compare Simplii Financial’s Mortgage Rates
Simplii Financial’s website includes a number of their mortgage rates for various terms and types of mortgage. We can help you compare these to all of the best rates available in Canada, which could help you save thousands of dollars over the course of your mortgage. When comparing rates from major lenders, shop around for special offers and make sure to look at multiple lenders at once to find the lowest rate.
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How to Compare Bank Rates from Big Banks
Comparing rates from big lenders like the Big Five, and smaller lenders like Simplii Financial, is an important part of the mortgage application process. While Simplii have a wide range of mortgages and rates, it’s always worth checking these against the rest of the market to make sure you get the best deal possible. The quickest way to compare mortgage rates from major lenders like Simplii Financial is to check out our rate comparison page. Not only can we help you compare the best rates available, we also lend directly. If you’re comparing rates from Simplii or another lender and you find a rate you want, nesto will guarantee to match or beat it or you could get $500.
Simplii Financial Overview & Stock Information
Simplii Financial is a digital banking arm of CIBC. The name Simplii Financial is a trademark and division of CIBC, and banking products and services branded ‘Simplii Financial’ are offered by CIBC. Simplii Financial products and services are not available in Quebec. The company does not have shares since they are a division of CIBC, whose shares have traded for about $60-80 CAD in the last year under the symbol CIBC.
Simplii Financial Prime Rate
Simplii Financial’s Prime Rate is currently 5.45%, effective September 8, 2022. The Prime rate is used by lenders like Simplii as a basis for several products, including mortgages and lines of credit. Prime rates are generally combined with a positive or negative spread (e.g. +/- 1.5%) for most lending products, depending on the level of risk that a customer represents.
Simplii Financial 5-Year Fixed and Variable Rate History
Simplii Financial’s current 5-year fixed rate is 5.29%, and their 5-year variable rate is 5.10%. Here’s a breakdown of the bank’s 5-year fixed rates and variable rates over the last couple of years. Following interest rate cuts during COVID-19 and subsequent rate hikes following re-opening, Simplii Financial’s rates have followed national trends with other lenders.
Simplii Financial Mortgage Products
Simplii Financial offers conventional fixed and variable rate mortgages with a range of terms and rate options, and a number of specialized mortgage products for new Canadians, Rural living loans, and HELOCs. Simplii Financial offers flexible payment options and competitive rates.
Fixed and variable rate mortgages
Simplii offers basic variable and fixed rate mortgages with a range of term options.
Here’s a breakdown of their mortgages, with rates effective as of September 20, 2022.
| Type & term | Special rate | Apr |
|---|---|---|
| 2-year fixed | 5.09% | 5.09% |
| 3-year fixed | 5.14% | 5.14% |
| 4-year fixed | 5.19% | 5.19% |
| 5-year fixed | 5.29% | 5.29% |
| 5-year variable | 5.10% | 5.10% |
Simplii Financial HELOC
A Home Equity Line of Credit, or HELOC, is a revolving line of credit you can take out
against your home’s equity. HELOCs only accrue interest on money you actually spend, much like any other revolving line of credit, or even a credit card. Simplii offers HELOCs for situations requiring access to credit from your home’s equity, for things like renovations, education, debt consolidation, and so on. Simplii also offers free unlimited transactions and withdrawals, which can help you save money if you’re using your HELOC often for smaller purchases.
New Canadians Program
Simplii Financial offer a program for newcomers to Canada, specifically those who have lived in Canada for less than 5 years and generated Canadian income. To apply, you will need to have Canadian income and employment verification, plus 20% deposit and closing costs for your home. You must also satisfy the following requirements to qualify:
- You have lived in Canada for less than 5 years
- You are a client of the Simplii Newcomer or International Student Banking Offer program
In addition, you have one of the following:
- A permanent resident card
- A confirmation of permanent resident letter
- A verification of status document
The main benefit of Simplii’s New to Canada special mortgage program is that it will allow you to use alternative methods of validating your credit history. Simplii also offers a Work Permit Program for foreign workers wanting to buy a residential property in Canada. A foreign worker who does not have Canadian immigration status must have a work visa that allows them to work in Canada, and a Temporary Resident visa. To apply, you need proof of Canadian income and employment, 20% down payment, closing costs, and proof of your work visa and temporary resident status in Canada.
Medical Professional
Simplii offers a mortgage program for recent graduates from the medical or dental professions who want to purchase a home but have not yet reached their full income potential. The primary benefit of this program is to boost applicants income potential to increase affordability in the housing market. To qualify, you must have recently graduated from medical or dental school and have been a doctor or dentist for 3 years or less (both of which you will need to be able to prove). You must also put down a deposit of 20% for your home.
Resort Lending
Simplii’s Resort Lending Program is designed for clients looking to finance a residential resort community property. To qualify for the program you should be looking for a property in a residential resort community that meets the resort community requirements. To apply, you’ll need proof of Canadian income and employment verification, plus a 20% deposit and closing costs.
Agriculture
Simplii’s Rural Lifestyle Program is made for people who want to buy a home on a large plot of land, giving you the opportunity to finance larger properties. The program is designed for borrowers looking to finance purchases of homes on plots of land between 1 and 200 acres. To apply, you will need proof of Canadian income and employment records, plus a 20% deposit and closing cost.
Simplii Financial Mortgage Payment Increases
Mortgage prepayment involves a borrower paying off some or all of their loan early, either with a lump sum payment, or by increasing their monthly payment amount or frequency. Every lender in Canada has different prepayment allowances you can pay each year.
Simplii Financial has a number of prepayment options for their customers, which can help them save thousands of dollars over the lifetime of their loan’s amortization period. Simplii offers a number of ways to help you pay down your mortgage faster.
- Increase your regular payment amount each mortgage year. Simplii will let you increase your mortgage payment amount once each year, depending on your mortgage product.
- Increasing your payment frequency. Simplii will allow you to speed up how often you pay your mortgage, e.g. from monthly to weekly or bi-weekly payments. This allows you to reduce the amount of interest you’ll accrue over the lifetime of your loan.
- Making a lump sum payment. Simplii Financial will let you make lump sum payments up to your prepayment privilege amount, which will depend on your type and amount of loan. A lump sum payment is applied directly to your principal if there’s no interest owing. This will help you pay down your mortgage principal faster, and could save you money since your overall interest amount will be lower in the long run due to reduced principal.
- Mortgages become open at renewal. All mortgages become open at renewal, according to Simplii Financial. This means you can pay as much as you want on your mortgage at renewal. For example, if you chose 5-year, fixed rate term, and made a $10,000 lump-sum payment each time your mortgage came up for renewal, you would save over $35,000 in interest over the entire amortization period of your mortgage, allowing you to be mortgage-free about 6 years sooner.
Simplii Financial Annual Mortgage Prepayment
Simplii Finanical offer up to 25% annual mortgage prepayment on some of their mortgages. For fixed-rate closed mortgages with a term of 2 years or more (other than Simplii’s Fundamental mortgage), and the Auto 12 Plus (Convertible) mortgage, you can increase your regular payment amount by up to 25% of the payment amount you chose when you entered or last renewed your mortgage with Simplii. For variable rate closed mortgages, you can increase your regular payment amount to any amount as long as the amortization period is not reduced to less than five years with Simplii.
| Canadian Bank Closed Mortgage Prepayment Amounts | |
|---|---|
| RBC | 10% |
| TD Bank | 15% |
| Scotiabank | 15% |
| BMO | 20% |
| HSBC | 20% |
| Simplii Financial | 25% |
Renewal Process with Big Banks
If you’re renewing your mortgage with Simplii Financial, or even a large bricks and mortar lender, they’ll typically send a notice of renewal a few months before your term is set to expire, with the interest rate attached for your renewal. Once your term expires with your Simplii mortgage you also have a choice to renew with another bank or mortgage provider, and you don’t have to stick with the same lender. If you’re looking to renew your Simplii Financial mortgage with another lender, check out other mortgage rates and make sure you’re getting the best rate possible, as rates change over time.
At nesto, we help you find the best rates on your mortgage, and we also lend directly. To learn more about renewing your Simplii Financial mortgage with nesto, explore our guide to the renewal process in Canada.
Frequently Asked Questions (FAQ)
Here are the most frequently asked questions about Simplii Financial’s mortgage products and rates.
Are Simplii Financial rates lower than other big banks?
Simplii Financial’s current 5-year fixed rate mortgage has an interest rate of 5.29%, as of September 20, 2022. This is slightly more competitive than some other lenders. Simplii Financial offers a variable rate on 5-year terms of 5.10% as of September 20, 2022. This is more competitive than other lenders like National Bank and even CIBC. Ultimately, rates from lenders like Simplii Financial also depend on the individual applicant, and whether or not there is any room to negotiate or get a better than posted rate.
What are the benefits of choosing a smaller lender?
Simplii Financial is a small and digital-first brand that is backed and trademarked by CIBC. While they appear to be a smaller, leaner style of lender, they are ultimately providing products and services through CIBC. However, the bank’s brand and business model is designed to help customers deal with their banking in an easier, simpler way. Overall, Simplii’s rates are fairly competitive and somewhat representative of many smaller, digital-first lenders.
How do I get a mortgage with Simplii Financial?
To get started with a Simplii mortgage you should explore their rates and website, and make sure they are the right lender for you. You can apply online through their mortgages pages and input basic first-level details that will help determine your eligibility, like income, employment, and any history of bankruptcy or poor credit.
Final Thoughts
Simplii Financial is a unique lender in that they’re branded as a digital-first bank, but are actually owned and backed by CIBC. The bank provides relatively competitive rates, although it’s always worth exploring more rates to find the best mortgage possible. At nesto, we help you compare the best rates available and we lend directly. If you’re with Simplii Financial and looking to renew with a new lender, speak to one of our team today.
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