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Let's say a customer wants to transfer $400,000 mortgage to CIBC. He has 2 options.
8 X7 a3 A7 | H9 p. O9 e1. 3-year closed mortage with 3.3% and 3% cash back., m0 o( ~3 }/ M
2. 5-year closed mortgage with posted rate 5.39% and 5% cash back2 N3 a2 ?$ i; G: X; ]
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Option 1. After 3% cash back, your mortgage amount will become $400,000*0.97=$388,000 with 3.3% interest
% s0 w8 G0 }$ C- S, JIf you want to payoff your mortgage in 25 years. Monthly PMT $1896.44. The remaining balance is $356,393 after 3 years.
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z" O4 n4 x6 H1 A; VOption 2. After 5% cash back, your mortgage amount will become
- E5 y6 Q! I& t6 d1 }0 n. [$400,000*0.95=$380,000 with 5.39% interest." D, t" B" C2 K- s3 M
If you want to payoff your mortagge in 25years. Monthly PMT 2295.21 The remaining balance will be $356,351.50 after 3 years
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Basically, for the above options, after 3 years, the mortgage remaining balance is similiar.
" r2 X1 z8 D5 \* z: FIf you choose the 2% cash back with 3.3%, every month you save about $398.77 monthly payment for 3 years. Total roughly saving ($398.77*12*3=$14,355) |
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