The Shop2Save System

On the surface, cash back on a real estate purchase in Toronto seems too good to be true. There are, of course, cash back mortgages – and this article will deal with them. But first it is useful to know about the Shop2Save system of online shopping, which can also bring you rewards in just about every area you make purchases. From electronics to home furniture, clothes to books, to real estate – Shop2Save covers it all. And that also includes real estate purchase and mortgages.

The Shop2Save concept is simple. When you shop, you get rewards in dollars loaded into your e-wallet. These are not confusing points with different values and rules for redemption. It’s much more direct than that. Your shopping reward money is loaded into your e-wallet within thirty days – and you can start spending it immediately on Amazon, for instant discounts.

There is no minimum amount needed in your Shop2Save wallet in order to generate the Amazon coupon. Nor are there annual fees.

You can earn money with Shop2Save on the purchase of real estate. This applies as well to cash back mortgages.

A cash back mortgage is like any other kind of mortgage except that on closing you get a lump sum of money. Depending on the lender, this amount is either deposited into your bank account or made available to you on closing at your lawyer’s office. The amount is usually calculated as a percentage of the mortgage (not the house price) and usually ranges from 1-7% of the total. This cash infusion after closing can be incredibly useful to cover moving costs, legal fees, renovations and even furniture. It is an exceptionally simple and convenient way to access money at a time when you are likely financially strapped.

There are ‘cons,’ however. The injection of cash is good, but it is bundled with your mortgage – and so you lose some degree of transparency as to how much you owe. And the presence of that cash back money will result in your mortgage being fixed at a higher rate – so over time you will be paying more to your lender on that mortgage that you would have had you not gone the cash back route. There are also penalties incurred if you want to refinance your mortgage – you will have to repay the cash back at that time.

All that being said, the cash back mortgage remains a useful option for many, and there are brokers who can walk you through the process, so you know exactly what the financial ramifications are, both in the short and the long term.

Shop 2 Save has partnered with a respected Ontario mortgage brokerage, Dominion Lending Centres. With offices across the Greater Toronto Area, Dominion has access to over one hundred lending institutions, and this give it fast access to the best lender for your purposes. Your broker at Dominion will walk you through the various kinds of mortgages for which you are eligible, including the cash back mortgage. The company sees it as essential to its duty to its clients to outline any hidden costs of fees. Cash back on a real estate purchase in Toronto is possible – and Dominion can help you achieve that goal.