The benefits of a Cash Back Mortgage

A cash back on real estate mortgage in Ontario is an attractive option at a time of tight money. How it works is quite simple. With a cash back mortgage, your lender deposits a lump sum back into your account at the time the real estate transaction is completed. A typical cashback amount is 5% of the mortgage value, but it can go as high as 7% or be as low as 1%. The amount is calculated on the mortgage amount – and not the property’s sale value.

The most common reasons people choose a cash back mortgage is to use the money to renovate their new home, pay off a high interest debt, put the money into savings, or even to buy furniture. Because it arrives after the real estate deal is complete, it cannot be used as part of the down payment on the property.

The interest rate on cash back mortgages is higher than that of a conventional mortgage. This reflects the extra amount on loan. You need to work through the figures on this because the increased interest rate will result in increased total mortgage payment greater than the lump sum received in the cash back process.

However, some buyers do need that extra money off the top, and the cash back mortgage works superbly. A good broker can ensure you get the best rate for the cash back mortgage.

Finding a good mortgage broker is as easy as using your Shop2Save app. By partnering with Dominion Lending Centres, Shop2Save has linked itself with one of Ontario’s most rapidly growing mortgage brokers. Dominion has offices across the Greater Toronto Area (GTA) and has also established ‘Snowbird branches’ in southern Florida. It has access to over 100 lenders, which ensures that you can get the best possible rate.

Your Dominion broker can advise you on whether a cash back mortgage is the best course for you to pursue – or if your borrowing needs are better suited to a classic mortgage at the best rate going. Part of Dominion’s success in the industry is its willingness to demystify the borrowing process for its clients, and to show all the hidden fees and costs buried in each mortgage.

And the bonus here? Securing a mortgage through Dominion can earn you valuable Shop2Save dollars in your e-wallet!

Shop2Save’s consumer-friendly concept is quite simple. You register and then start shopping, with your online purchases fulfilled by Amazon. You can shop for consumer goods as well as mortgages and personal and home insurance. For everything, the purchases come with discounts made possible by ‘crowd pricing.’

Every purchase earns you rewards, which are loaded into your e-wallet. The money you have earned is deposited within thirty days – there is no waiting for a fixed deposit date. And you do not need to maintain a minimum balance in your account.

Earning money with cash back on real estate and mortgages in Ontario is indeed possible!