Faculty & Staff Housing Loan Program
To benefit faculty members who would like to purchase a home, the University of Toronto has established a loan program with the Canadian Imperial Bank of Commerce (CIBC) [Main Branch Commerce Court West, 199 Bay st. only]. This program assists qualified faculty in purchasing a house or condominium for use as their principal residence. Applicants must supply a down payment of at least ten percent of the purchase price of the home. A first mortgage may be available from the CIBC. The University guarantees the second mortgage or demand loan if one is required. The maximum amount of demand loan guaranteed by the University is $65,000.
The faculty member may benefit from this program by avoiding the Canada Mortgage and Housing Corporation (CMHC) insurance premium that is normally required on any property in which the purchaser has less than 20% equity. While not obligated to obtain a first mortgage from CIBC, there is a benefit in doing so. If the first mortgage is obtained from CIBC and a “closed” fixed interest rate is chosen, the faculty or staff member can obtain the same fixed interest rate for the demand loan (typically, the demand loan or second mortgage interest rate is higher than the rate on a first mortgage). The maximum amount of the demand loan guaranteed by the University is $65,000. The demand loan will be “open”, so that should the faculty or staff member wish to make extra payments on the principal during the year, there will be no penalty charged, and no notice is required.
Faculty are encouraged to check with more than one financial institution to ensure that they receive the most competitive mortgage rate available.
For further information and to obtain a copy of the Housing Loan Policy and Application Form, please visit the Financial Services Department website or contact Andrew Wong at 416-946-3371 or email firstname.lastname@example.org
For more information on competitive mortgage rates & options please contact CIBC Financial Advisors, Ujjwal Dotel at 416-980-7777 ext 331 / Ujjwal.email@example.com, or Drita Ameti at 416-980-7777 ext 321 / Drita.Ameti@CIBC.COM
For more banking information with the CIBC, click here.