Simplii Financial Mortgage Rates & Reviews
Simplii Financial Background
Simplii Financial operates as a direct banking brand, which is owned by the Canadian Imperial Bank of Commerce (CIBC). Simplii Financial started off as PC Financial, which was a joint venture between Loblaws and CIBC, however after the joint venture was dissolved, CIBC purchased the business line and changed the name to Simplii Financial on November 1st, 2017. Simplii offers a range of financial services, such as: Simplii Financial mortgages, bank accounts, lines of credit, credit cards, and a variety of investment products. As a branchless bank, Simplii Financial provides its services to nearly 2 million clients across Canada online, and through its own atm network and CIBC’s atm network.
Simplii Financial Fixed Mortgage Rates
Getting a fixed rate mortgage is the most common type of mortgage for home buyers, considering that if Simplii mortgage rates are to rise, you will still have the same mortgage rate over your whole term. This certainty will allow you to plan in advance for how long it will take to pay off your mortgage, and give you peace of mind, especially if you are a first time home buyer with a large mortgage amount. When getting a mortgage, it's likely that the most promotions will be on the 5-year fixed mortgage rate. This is because 5 year fixed mortgages are the most common mortgage option, meaning that lenders like Simplii will try and compete to offer their best mortgage rate for a 5 year fixed term.
| Term | Simplii Financial Rate | Canada's Lowest Rate |
|---|
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Simplii Financial Variable Mortgage Rates
Although a Simplii Financial variable rate mortgage is less common than a fixed rate one because of the added risk of having an interest rate that fluctuates, variable rate mortgages have been the best option over the last few decades for homebuyers. This is because the overnight interest rate and the prime interest rate have fallen over the last few decades. Since a variable rate mortgage moves alongside the prime rate, getting a variable rate mortgage may be a good choice if you expect the prime rate to be lower over your mortgage term. However, if the prime rate were to rise during your term, your Simplii financial mortgage rate will also rise in tandem. Considering that prime rates are at all time low levels, and interest rates are likely to rise in the future, this means getting a fixed rate mortgage may be the better choice. Although the amount of interest you will owe over your term changes with the prime rate, with a Simplii financial variable mortgage rate you will still have the same monthly mortgage payment. The only difference in your payments will be in how much goes to principal and interest. If the prime rate rises, more of your payment will go to interest rather than principal, while if the prime rate falls, more of your payment will go to principal rather than interest.
| Term | Simplii Financial Rate | Canada's Lowest Rate |
|---|
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Simplii Financial Prime Rate
The Simplii Financial prime rate is used as the basis for many of Simplii Financial's lending products, including: Simplii Financial mortgages, lines of credit, credit cards, and HELOCs. Using the prime rate, Simplii adds or subtracts a spread in addition to the prime rate, which will result in the interest rate being higher or lower than the prime rate. For mortgages, considering that they are secured by a home, the spread is usually negative.
Current Simplii Financial Prime Rate: 5.45%
Simplii FInancial History
Simplii Financial Mortgage Break Penalty
| Bank or Lender | Variable Rate Mortgage | Fixed Rate Mortgage |
|---|---|---|
 | 3 Months’ Interest based on the Simplii Prime Rate | Greater of 3 Months’ Interest or the IRD amount |
Difference in interest payable between the interest amount that you owe between the time of payment to maturity, calculated using your current mortgage rate plus any rate discount that you received, and the interest amount that you owe between the time of payment to maturity, calculated using Simplii Financial’s current posted rate for a comparable mortgage.
To determine your Simplii Financial mortgage break penalty, the calculator below will breakdown how much you may owe:
Simplii Financial Mortgage Prepayment Calculator
Are you looking to pay off your mortgage early? Or refinance the terms of your mortgage at a lower interest rate? Maybe you sold your home. Whatever the case, you most likely will have to pay a mortgage break penalty set by your lender. Whatever the situation, our calculator will help you determine the cost to break your mortgage so you can be confident about your mortgage decisions.
What is the remaining balance on your mortgage?
What is the term-length and type of your current mortgage?
What is your current mortgage interest rate?
If applicable, what was the rate discount you received when you signed your current mortgage agreement?
When did your current mortgage start?
Who is your current mortgage lender?
What is Simplii Financial's current interest rate for a 3-year fixed rate mortgage?
How is my mortgage penalty calculated?
Simplii Financial HELOC
Getting a HELOC from Simplii Financial is a great way to get a lower interest rate loan product, with the line of credit being secured by your home. Your HELOC will start to incur interest charges as you use the line of credit, meaning that even having a HELOC available as a back-up emergency fund can be helpful. Other potential use cases for a HELOC from Simplii include:
- For a home renovation,
- To make a large purchase,
- For an investment, and
- To pay for education costs
Simplii will also provide you with the benefit of having free unlimited transactions, withdrawals, and cheques, helping you to save money even if you don't plan on using your HELOC often.
Renewing Your Simplii Financial Mortgage
Renewing your Simplii Financial mortgage is simple and easy, with the option to both renew early, or at maturity. If you decide to renew early, you are able to do it up to 150 days in advance, which may help you to get a better mortgage rate locked in versus at maturity. If you do decide to wait longer to renew your mortgage closer to maturity, you will be contacted by a Simplii Financial mortgage specialist, who can help walk you through options and mortgage offers.
No matter if you choose to renew early or closer to maturity, it is important to shop around for the best mortgage renewal rate. Making sure there are no better options before renewing can save you thousands of dollars in interest payments over your new term. Even if you still want to renew with Simplii at the end of your term, shopping around and finding a better rate may give you more leverage to negotiate your rate. As well, if you do find a better rate, don't be afraid to switch! The potential interest savings may make switching mortgage providers too appealing to pass up.
Simplii Financial Mortgage Features
Simplii prepayment allowance
Every year, you are able to prepay up to 20% of your original mortgage balance without a prepayment penalty. This means that if you do have money leftover in your budgets, putting more money towards your mortgage can be a very wise decision. The more aggressively you prepay your mortgage, the less interest that you will have to pay over the life of your mortgage term.
Increase your payment amount
Increasing how much you pay towards your mortgage payments can be a good tactic to reduce your mortgage within your budget. Simplii allows you to increase your payments by up to 25% of your original amount for a fixed rate mortgage, and as much as you would like for a variable rate mortgage, without paying your mortgage off in less than 5 years. Any amount you can allocate to your mortgage in addition to your normal payments will go directly to your principal balance, making it exponentially faster to pay off your mortgage.
Increase your payment frequency
Simplii Financial gives you multiple options when deciding on how often to make your mortgage payments, including: weekly, bi-weekly, and monthly payment options. This allows you to match your mortgage payments with when you get paid, further simplifying the mortgage process. If you are able to speed up the frequency of your payments however, it can be a wise decision. This is because more frequent payments will mean that your mortgage balance that accrues interest will be reduced more often, leading to less interest being owed over your term, and you being mortgage free faster.
Simplii Financial creditor insurance for mortgages
Simplii offers you the ability to add-on mortgage life insurance coverage to your mortgage payments, with coverage being provided by Canada Life. If you are between the ages of 18 and 64, you are able to get coverage for up to $750,000 in mortgage amounts. The biggest benefit of mortgage life insurance is the peace of mind it can give you, knowing that if something happens to you, that your family will still be able to remain in your home. Your first 30 days of coverage will be provided risk-free, meaning that if you choose to cancel it within that time, you will get your money back.
Simplii Financial Contact Information
Since Simplii Financial is an online bank with it’s only in-person component being its ATM network and affiliated network, it may not be the greatest option for you if you want to speak in person. However, Simplii offers multiple online methods to get in touch with a representative, including by phone at 1-888-866-0866, over email at talktous@simplii.com, or through a Simplii Financial chat agent. As well, to help you find an ATM, the Simplii Financial ATM locator can help.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.