What is Shop2Save?

Shop2Save is a new way to get cash back on real estate transactions in Ontario. Register with Shop2Save and then use its app to buy everything from consumer electronics to clothing to home improvements goods. And yes, even mortgages! Stop2Save has partnered with a leading Ontario broker, Dominion Lending Centres.

With Shop2 Save, every purchase you make earns you rewards in money that is loaded on to your Amazon Gift card. The process is much simpler and more transparent than traditional loyalty points that vary from store to store. The money you earn with Shop2Save is deposited within a month to your digital wallet. Unlike with some loyalty programs there is no waiting months and months for the deposit.

You also receive Amazon gift card dollars when you – or people you refer - buy and sell real estate, and that includes cash back mortgages negotiated with the assistance of Dominion Lending Centres.

One of the best ways to add to your shop2Save wallet is through a cash back mortgage. This kind of mortgage is a common way for home purchasers to access extra funds upon closing a real estate deal. The injection of cash back money – which arrives in one payment upon closing – is often used to cover moving expenses, necessary home renovations and even the purchase of furniture.

There is no arguing with the attraction of getting a chunk of cash back money at closing, especially in this era of high mortgage rates and stubbornly high house prices. A typical cash back sum is 5% of the mortgage (not the house price) but it can go as high as 7% or be as low as 1%. There is also the option of having a fixed amount on closing rather than a percentage of the mortgage.

The main drawback is that payment for the debt for that extra money is bundled in with the mortgage principal. A cash back mortgage is at a higher rate than regular mortgages. So, the payments of the cash back component of the mortgage will amount to more than the original cash back.

Furthermore, should you refinance, port, transfer or renew your mortgage before it matures, you will incur cash back penalties. And the calculation of what you would have to pay back may not be in proportion to how much of your mortgage term has passed. For example, if only 40% of your mortgage term has passed you may in fact still owe 60% on the cash back loans.

A good broker can advise you on the true costs of the cash back loan and, should you decide to proceed, negotiate the best possible rate for you. Dominion Lending Centres is a growing Ontario mortgage brokerage, with branches across the Greater Toronto Area and “snowbird’ offices in southern Florida.

Because of its size, Dominion has access to over one hundred mortgage lenders, and this allows them to quickly determine the one best suited to your needs – and with the best rate. Dominion can also help you with understand the pros and cons of a cash back mortgage on real estate in Ontario.