• Report: #556235

Complaint Review: Canadian Imperial Bank Of Commerce

  • Submitted: Mon, January 18, 2010
  • Updated: Mon, February 15, 2010

  • Reported By: Terry — east bay Nova Scotia Canada
Canadian Imperial Bank Of Commerce
toronto Sydney, Nova Scotia Canada

Canadian Imperial Bank Of Commerce CIBC - Canada MORTGAGE RIP-OFF - HOMEOWNERS BEWARE Sydney, Nova Scotia, Canada

*General Comment: Get used to it

What's this?
What's this?
What's this?
Is this
Ripoff Report
About you?
Ripoff Report
A business' first
line of defense
on the Internet.
If your business is
willing to make a
commitment to
customer satisfaction
Click here now..

Does your business have a bad reputation?
Fix it the right way.
Corporate Advocacy Program™

SEO Reputation Management at its best!

We recently sold our house and as a result closed out our five-year fixed-term mortgage.  We were owing about $180,000 on the mortgage at an interest rate of 5.7%.  We had been paying approximately $300 a week for about 80 weeks until the day we finally sold the place. 

The mortgage broker had informed us that for closing out the mortgage early we would be penalized three months' worth of interest.  Why this is permitted I have no idea because it doesn't make much sense to be charged a penalty for paying off a debt.  Credit card companies would never get away with this.  Nor would any other lending facility.  However, the mortgage lenders have been allowed to employ this bizarre practice. 

Even more bizarre, however, is the fact some small print on the contract allowed to CIBC to invoke a rather complicated formula that led us to being penalized far mroe than what three months' worth of interest would add up to.  Guess how much (hint: better be sitting down when I give you the answer).

Would you believe: $11,000?

This at a time when people are losing their homes through no choice of their own.  Imagine the shock when they're hit with such a mortgage "penalty" to boot.  But they get away with it because they can.

So homeowners beware of this CIBC rip-off.  Write your member of Parliament and complain, otherwise they'll keep on getting away with this because they can.

This report was posted on Ripoff Report on 01/18/2010 12:12 PM and is a permanent record located here: http://www.ripoffreport.com/r/Canadian-Imperial-Bank-Of-Commerce/Sydney-Nova-Scotia-/Canadian-Imperial-Bank-Of-Commerce-CIBC-Canada-MORTGAGE-RIP-OFF-HOMEOWNERS-BEWARE-Sydn-556235. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

Click Here to read other Ripoff Reports on Canadian Imperial Bank Of Commerce

Search for additional reports

If you would like to see more Rip-off Reports on this company/individual, search here:

Search Tips
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?
REBUTTALS & REPLIES:
0Author 1Consumer 0Employee/Owner
Updates & Rebuttals

#1 General Comment

Get used to it

AUTHOR: ssca1212 - (United States of America)

you may feel that his is unnecessary but get used to it. If you had read the mortgage documents that you signed prior to closing it is stated very clearly that you will be subject to a penalty for prepaying ealry. the alternative is to wait till your term is up or port your mortgage which should have been explained to you by your broker. He probably failed to acknowledge this as he wouldnt get paid for getting you your next mortgage. All and I mean all mortgage companies have penalties for fixed rate mortgages unless it is an open mortgage. Doesn't matter where you go this will be the case
Respond to this report!
What's this?
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?
X