The Canadian Imperial Bank of Commerce (CIBC) has trimmed 0.1 percentage points off a number of its residential mortgages, following similar moves on Thursday by several of the major banks, dropping the bank’s benchmark posted five-year fixed rate to 5.89 per cent.

CIBC is the latest Canadian bank to announce lower residential mortgage rates. RBC Royal Bank (TSX:RY), TD Canada Trust (TSX:TD) and Bank of Montreal (TSX:BMO) all lowered most their posted fixed-term mortgages by one-tenth of a point.

Canadian banks typically raise or lower their rates for fixed-term mortgages depending on bond markets, whereas variable-rate mortgages reflect adjustments on the banks’ prime rates.

Current CIBC Prime Rate as of June 25, 2010

Closed Mortgages	Term
	6 mos	1 yr	2 yr	3 yr	4 yr	5 yr	7 yr	10 yr
CIBC Convertible Mortgage	4.95
CIBC Fixed Rate Closed Mortgage		3.70	4.05	4.70	5.64	5.99	7.05	7.10
CIBC Better Than Posted Mortgage®**				3.83	4.82	4.92	5.72	5.75
CIBC Variable Flex Mortgage™						2.35

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Open Mortgages	Term
	6 mos	1 yr	2 yr	3 yr	4 yr	5 yr	7 yr	10 yr
CIBC Fixed Rate Open Mortgage	6.70	6.45
CIBC Variable Rate Open Mortgage						3.30

• Six-month convertible 4.85 per cent, down 0.10 per cent
• Six-month open 6.70 per cent, no change
• One-year open 6.45 per cent, no change
• One-year closed 3.60 per cent, down 0.10 per cent
• Two-year closed 3.95 per cent, down 0.10 per cent
• Three-year closed 4.60 per cent, down 0.10 per cent
• Four-year closed 5.54 per cent, down 0.10 per cent
• Five-year closed 5.89 per cent, down 0.10 per cent
• Seven-year closed 6.95 per cent, down 0.10 per cent
• 10-year closed 7.00 per cent, down 0.10 per cent

These rates are effective Saturday, June 26, 2010.

About CIBC

CIBC (TSX, NYSE: CM) is a leading Canadian-based global financial institution. Through two major operating groups, CIBC Retail Markets and Wholesale Banking, CIBC provides a full range of financial service products and services to almost 11 million individual, small business and commercial, corporate and institutional clients in Canada and around the world.

The Canadian Bank of Commerce (The Commerce) opened for business on May 15, 1867 in Toronto. The head office and main branch were located on the corner of Yonge and Colborne in what would become Toronto’s financial district. The Honourable William McMaster, a prominent Toronto businessman and philanthropist, was the principal founder of the bank and its first president. Concerned about Montreal’s influence over the economy of Upper Canada, McMaster founded the bank mainly as competition for the Bank of Montreal. An aggressive businessman, he rapidly expanded the bank and its network of branches; by 1874 it had 24 branches, making it the largest bank headquartered in Ontario.

The Imperial Bank of Canada (The Imperial) opened in Toronto on March 18, 1875. Its original premises were located at 18 Toronto Street, not far from The Canadian Bank of Commerce. Henry Stark Howland, previously vice-president of The Commerce, was the principal founder and first president of the new bank.

Competition was fierce as banks raced to be the first in towns that were sprouting up in western Canada. The staff of the Vegreville, Alberta branch opened for business in an abandoned log and mud hut in September 1905. Not only did the hut act as a branch for the first two months, it was where the branch’s employees slept as well, and employees shared their sleeping bags with the garter snakes that moved in as the nights got colder. The branch soon moved from the mud hut to a homesteader cabin, and then to a pre-fabricated building in 1906.

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Tags: Bank of Montreal, CIBC, RBC Royal Bank, residential mortgages, TD Canada Trust