CIBC – Pre-Authorized Payment Agreement
What Is a Pre-Authorized Payment Agreement?
If your mortgage lender has asked you for a Pre-Authorized Payment Agreement (CIBC) and you’re not sure what it is, you’re not alone.
Whether you’re buying a home, refinancing, or renewing a mortgage in Canada, lenders require this agreement to set up automatic mortgage payments from your CIBC bank account. Once authorized, your mortgage payments are withdrawn automatically — on time, without manual transfers.
What Exactly Is a Pre-Authorized Payment Agreement?
A Pre-Authorized Payment Agreement is a written authorization that allows your mortgage lender to withdraw your mortgage payments directly from your CIBC chequing or savings account.
With this agreement in place:
- Payments are automatically debited on the agreed schedule
- You don’t need to send monthly payments manually
- Your mortgage stays in good standing with consistent on-time payments
Why Do Lenders Ask for an CIBC Pre-Authorized Payment Agreement?
Mortgage lenders request this agreement to:
- Ensure mortgage payments are made on time
- Reduce the risk of missed or late payments
- Confirm banking information matches the borrower
For CIBC clients, this agreement works alongside a void cheque, PAD form, or CIBC account details document.
What Your CIBC Agreement Will Include
Your Pre-Authorized Payment Agreement using an CIBC account typically includes:
- Your full name as shown on your CIBC account
- CIBC institution number, transit number, and account number
- Mortgage payment amount and frequency
- Your authorization permitting automatic withdrawals
What If You Change Your CIBC Account?
If you switch CIBC accounts or change banks:
- You must submit updated banking details
- A new authorization may be required
- Payments will not transfer automatically without re-authorization
Can You Cancel the Agreement?
Yes. You can cancel your Pre-Authorized Payment Agreement by notifying your lender in writing. Keep in mind:
- Cancelling does not cancel your mortgage
- You must arrange another approved payment method to avoid missed payments
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