CIBC offering early renewal at 3.80% variable — should I take it now or shop around first?
Current mortgage details:
CIBC Fixed
Balance: ~$532k
Current rate: 6.09%
Maturity: Oct 2026
Current payment: ~$3,343/month
If I leave my current mortgage today, they told me the penalty would be around $9k.
CIBC is offering me an early renewal right now into a 3-year Flex Variable at Prime -0.65% (currently 3.80%).
My thinking is to take the early renewal now so I can immediately lower my rate and monthly payment, then continue shopping around with other lenders/brokers afterward. From what I understand, since it’s a Flex Variable mortgage, the penalty to break it later should only be around 3 months’ interest if I decide to switch lenders down the road. Mainly just trying to sanity check my thought process here and see if there’s anything I’m overlooking or should be aware of before signing.