Looking for a Cash Back Mortgage? Some Advice…

To get cash back on a mortgage for a real estate purchase in Ontario it is wise to seek out a qualified broker. With any mortgage there can be hidden fees and costs. A cash back mortgage is a complicated transaction. There is a need to weigh up the short-term financial windfall against the greater long-term cost of the mortgage.

A responsible brokerage like Dominion Lending Centres is a desirable choice for anyone considering a cash back mortgage. Dominion has a number of offices spread across the Greater Toronto Area (GTA), and a “snowbird” presence in Southern Florida. Dominion works with over one hundred lenders. This ensures that you can get speedy results for your mortgage quest and the best deal going. And just as important - Dominion is also noted for its willingness to show clients all the hidden fees and coasts buried in each mortgage – so no unpleasant surprises from the fine print later on.

Cash back mortgages are, for some buyers, an extremely attractive option. Simply, the cash back mortgage is a lump sum returned to the buyer after closing. The calculation of that cash back payment is usually based on a percentage of the mortgage that is being taken out by the buyer. It can range from 1 to 7% of the mortgage but a typical cash back payment is 5%.

This can be of a huge benefit to a cash strapped buy. In addition to the down payment, a buyer has many moving and closing costs, and often immediate home renovations that must be done. A cash back payment can cover all this. And, if done through Stop2Save, it can earn the purchaser valuable credits.

The downside to a cash back mortgage is an increase in the rate of the mortgage. The cash back sum is added to the mortgage principle, with the result that the total premium you pay over time on that cash back will be more than the lump sum you received at the outset. Also, because the cash back payment comes AFTER closing, it cannot be used to offset the down payment.

The cash back mortgage is not available on a variable rate mortgage; just one won with a fixed rate and payment schedule of three years or more.

There are many different lenders offering versions of the cash back payment; a qualified mortgage broker like Shop2Save’s partner Dominion Lending Centres can help you weight the pros and cons as it relates to your budget, and then steer you to the one best suited for your budget should you opt for cash back.

Whether or not you opt for a cash back mortgage, securing one through Shop2Save’s partner Dominion Lending Centres can bring other rewards – money for your Shop2Save e-wallet! With a $500,000 mortgage you can earn $7700 in Shop2Save rewards. These reward points are deposited in your e-wallet – to be used for when you shop on Amazon. This is separate (and additional) to what you may have realized with your mortgage cash back on a real estate purchase in Ontario.