Understanding How Cash Back Mortgages Work

In today’s real estate market, a home can be very expensive. After purchasing a home, first time home buyers will often find themselves strapped for cash and facing a long list of instant costs and home-related expenditures to cover. Expenses may include legal closing fees, urgent renovations or repairs, and even home furnishings. Having the extra cash at hand could be just the thing you are looking for if you are buying your first home, or moving up the housing ladder.

Simply put, cash back mortgages allow you to receive a pre-determined amount of cash up-front that becomes yours to use as you please (except for the down payment). The lender offers either a percentage of the loan, usually between 4 to 6 %, or a fixed lump sum that is determined by the size of your mortgage. As soon as you have completed the purchase of the property, your lender will send you a cheque for the appropriate amount.

A cash back mortgage is one solution a homebuyer may want to consider, especially if it means the difference between making the property livable and/or profitable. Whether you decide to put it in a high interest savings account, use it to pay out your legal fees, cover previous debts or other home renovations, there are many ways you can put the money to good use.

For more information about cashback mortgages and our other services, give us a call today: 1-888-955-9011.