If you’re in the market for a mortgage, you may have come across the name MBNA Mortgage. But what exactly is MBNA Mortgage and how does it work?
In this article, we’ll take a closer look at MBNA Mortgage, including its history, types of mortgages offered, and the application process.
What is MBNA Mortgage?
MBNA Mortgage is a division of the Canadian Imperial Bank of Commerce (CIBC), one of Canada’s largest banks. The MBNA Mortgage division specializes in providing residential mortgage financing to Canadian homeowners and homebuyers.
MBNA Mortgage has been providing mortgages to Canadians since 1982, when it was established as MBNA Canada Bank. In 2011, the bank was acquired by CIBC and became a division of the bank.
Types of Mortgages Offered by MBNA Mortgage
MBNA Mortgage offers a variety of mortgage products to meet the needs of different types of borrowers.
Here are some of the most common types of mortgages offered by MBNA Mortgage:
Fixed-rate mortgages
With a fixed-rate mortgage, the interest rate remains the same throughout the term of the mortgage, typically between one and ten years. This allows borrowers to budget their mortgage payments more easily.
Variable-rate mortgages
With a variable-rate mortgage, the interest rate fluctuates with changes in the prime lending rate set by the Bank of Canada. This type of mortgage may be ideal for borrowers who can handle fluctuations in their mortgage payments.
Home equity line of credit (HELOC)
A HELOC is a revolving line of credit that allows borrowers to access the equity in their home to fund other expenses, such as home renovations or a child’s education.
Cashback mortgages
With a cashback mortgage, borrowers receive a lump sum of cash when they first take out their mortgage. This can be a good option for borrowers who need extra cash for a down payment or other expenses.
The Application Process for MBNA Mortgage
If you’re interested in applying for a mortgage with MBNA Mortgage, the first step is to contact a mortgage specialist. You can do this by visiting an MBNA Mortgage branch, calling the bank’s customer service line, or filling out an online form on the MBNA Mortgage website.
The mortgage specialist will guide you through the application process, which typically includes the following steps:
Pre-approval
Before you start looking for a home, you can apply for pre-approval for a mortgage. This involves providing some basic information about your income, debts, and credit history. Once you’re pre-approved, you’ll know how much you can afford to spend on a home.
Application
When you find a home you want to purchase, you’ll need to submit a formal application for a mortgage. This will involve providing more detailed information about your financial situation, including your employment history, assets, and liabilities.
Approval
Once your application has been submitted, the lender will review your application and make a decision about whether to approve your mortgage. If your application is approved, you’ll receive a commitment letter outlining the terms of your mortgage.
Closing
The final step in the mortgage process is closing. This involves signing the mortgage agreement and paying any fees or charges associated with the mortgage. Once this is complete, the lender will release the funds for your mortgage.
Conclusion
MBNA Mortgage is a well-established mortgage lender in Canada, with a long history of providing affordable and flexible mortgage options to Canadian homeowners and homebuyers. Whether you’re looking for a fixed-rate mortgage, a variable-rate mortgage, a HELOC, or a cashback mortgage, MBNA Mortgage has a product to meet your needs.