CIBC's prime rate holds at 4.45% as mortgage borrowers weigh options

CIBC's prime rate is 4.45% as of Oct. 30, 2025, a figure that serves as the basis for its variable-rate mortgages, credit cards and lines of credit.

The bank's prime rate moves in lockstep with the Bank of Canada's overnight rate, directly affecting borrowing costs.

CIBC is the fifth largest of Canada's Big Six banks and a major mortgage lender, with a Canadian residential mortgage portfolio of $263 billion in the second quarter of 2023.

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The bank offers both posted rates and discounted special rates for mortgages.

"You'll probably be offered a posted rate if you walk into a CIBC branch," the bank's guidance states, noting these are often a starting point for negotiation.

Posted rates are the pre-discounted rates the bank makes publicly available and "can be much higher than discounted rates, with the expectation that borrowers will negotiate them down."

Special rates are discounted offers that are more in line with typical market rates.

"Even if you're offered a special mortgage rate at CIBC, don't be afraid to try and negotiate a lower one," the guidance advises.

Borrowers must choose between a fixed or variable mortgage rate.

A fixed-rate mortgage locks in an interest rate for the full term, providing payment predictability. "If fixed rates fall during your mortgage term, the only way to take advantage is by breaking your mortgage contract and refinancing," the bank notes, warning this can trigger steep prepayment penalties.

A variable-rate mortgage fluctuates with the bank's prime rate, meaning payments can rise or fall. "When it rises, more of your monthly mortgage payment will go toward interest. When it falls, more will go toward the principal."

"Variable mortgage rates have generally been lower than fixed rates," the bank notes, but cautions that in times of high inflation, prime rate increases can pressure finances.

From March 2022 to July 2023, variable rates increased by 475 basis points, meaning a borrower with a 2.25% rate in early 2022 would have been paying 7% by mid-2023.

Another choice is between an open mortgage, which allows penalty-free prepayment, and a closed mortgage, which imposes annual prepayment limits. "Open mortgages tend to come with much higher interest rates."

CIBC also offers a six-month closed convertible mortgage that can be extended to a longer term without penalty. "A convertible mortgage can be a helpful option if you expect mortgage rates to fall in the near future," the guidance states.

When comparing rates, the bank advises using the annual percentage rate, or APR, which includes fees, for a more accurate cost picture.

To secure the best possible rate, CIBC suggests borrowers can raise their credit score, make a larger down payment, lower their debt service ratios, shop around with other lenders and negotiate.

"Don't be afraid to ask a CIBC mortgage advisor if they can improve on the rate they've offered you," the guidance states. "Let them know you'll be consulting other lenders before making a final decision."

The bank, formed in 1961 from the merger of the Canadian Bank of Commerce and the Imperial Bank of Canada, has introduced innovations including different payment frequencies for mortgages and automated telephone banking.

With files from NerdWallet