Earn Money While Shopping – or Buying Property

Cash back on a real estate purchase is just one of the many ways Shop2Save can be a financial windfall. Most online retailers offer standard discounts or benefits, but Shop2Save allows you to save money while shopping - and earn money at the same time. And that includes real estate transactions and mortgages.

How it all works is simple. You register with Shop2Save and then start shopping. Every purchase you make earns rewards dollars that are loaded on to your e-wallet. And these are dollars, not confusing ‘points’ - the value of which varies wildly from store to store. The money is deposited within thirty days in your digital wallet – there is no waiting for a fixed deposit date in some distant future.

The appeal of a cash back mortgage can be strong, especially in the stress-filled process of house hunting and setting up financing. A typical cash back mortgage loan ranges from 1 to 7% of the amount of the mortgage – not the cost of the property. Still, that can be a tidy sum, and many cash back mortgagees use the money for moving costs, necessary home renovations and even the purchase of furniture. There are so many pressing needs at the time of purchase – and it is easy to see that a cash back loan is irresistible, or even a necessity.

However, it can also be a case of short-term gain and long-term pain. There are two ways to collect money on a cash back mortgage – one is a fixed rate amount of cash paid to you at closing, the other – as mentioned – a percentage of the overall mortgage.

The cash back windfall is paid back over the life of the mortgage and will also have the effect of increasing the rate of that mortgage. The lender is going to be making more money over the term of the mortgage in exchange for that welcome infusion of cash that it lends upfront.

It may be that it is wiser to make a smaller down payment on the property, rather than take out the cash back offer. A good mortgage broker can crunch the numbers for you. It is important to remember also that the cash back cannot be a down payment on the property – because it is made available AFTER closing, not before.

And, finally, if the mortgage is changed or refinanced during its term, then the cash back must be repaid, quite possible with a penalty clause or repayment premium.

Everyone’s needs are different and what works for some, does not work for others. Again, consult a good mortgage broker.

Shop2Save has partnered with Dominion Lending Centres, an Ontario-based mortgage broker. This fast-growing company has offices across the Greater Toronto Area and in southern Florida and has access to over one hundred lenders. This means that Dominion can quickly find you the best cash back mortgage for your budget, at the best rate. And the bonus is that, in addition to the cash back from the mortgage, Shop2Save’s involvement means you will also get ‘cash back’ on that real estate purchase in the form of money in your e-wallet.