Cash Back Mortgage

The amount of the ‘cash back’ is a percentage of the mortgage amount you are borrowing – usually 3%. For example, if you borrow $100,000 you could receive as much as $3,000 back from the lender. There are several negative aspects to these offers.

• You will probably pay the full posted interest rate.
• You cannot use the funds as part of your down payment.
• If you pay off the mortgage before the end of the term you will have to repay the lender some of the ‘cash back’ money.

The advantage is, you can choose how to spend the cash you receive. For example, you may have too much credit card debt and by paying down your debt you may qualify for a bigger mortgage.

 

Special conditions apply. Rates subject to change.