Cash Back Mortgages
Who doesn’t love a little extra cash, right?
A cash back mortgage offers exactly that—an upfront lump sum, which you can use for moving expenses, furniture, or anything else you might need for your new home. Keep in mind, though, that this “cash” is built into your mortgage, so you’ll be paying it back over time at a slightly higher interest rate.
Some of our lender partners offer 1.5%, 2%, 3% and 5% Cash back on the mortgaged amount! This amount is paid back over the course of your mortgage and at renewal time (this will be a highlight to move some to renewal/switch page) there is nothing owing! You get the money at the lawyers office at closing, and it is yours to do as you wish!
Example
Purchase $450,000
Down payment $22,500
3% Cash back = $12,872
25 year amortization
5 year term comparable
Cash back payment = $1046.26 biweekly
NO cash back = $1111.89 biweekly
+$65.63 biweekly You get $12,872 at closing!
Eligibility for Cash Back Mortgage
Credit Score Requirements
- Minimum 680 Beacon for at least 1 qualifying applicant
- Minimum 600 for all other applicants
Available Products
- 5-year Standard Fixed or Adjustable Rate Mortgages
Cash Back Restrictions
- Cash back cannot be used for the down payment
Payout Repayment (if before renewal )
- 1 year (100%), 2ed year (80%), 3ed year (60%), 4th year (40%) and 5th year (20%)
- While it might cost a little more in the long run, it can be a smart move if you need immediate funds for things like settling in or covering some extra expenses. Plus, the rates are often better than alternatives like credit cards or a HELOC, making it a good option for many homebuyers.
