A Cash-Back Mortgage is a great product to consider when you need a little bit of extra money after your new mortgage completes.
You can receive an extra 1%-3% of the total mortgage amount in the form of a cheque from the lender and you don’t have to pay them back as long as you stay in that mortgage for the chosen term.
For example, let’s say you purchase a home for $300,000 with a 5% down payment making your total new mortgage $285,000 but want a little bit of extra money to pay off some debt after your purchase completes. You could actually receive a cheque from the lender for up to $8,550 in this example and use it for whatever you want! You can even use it to help pay any closing costs incurred.
There is quite a bit to consider when deciding whether or not this type of mortgage is right for you so call us to discuss!