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Cash Back Mortgages


Moving into your new home comes with costs that you may not be able to cover in one shot. There’s renovations, furnishing and decorating costs that could see you seeing major debt if you can’t pay for everything right away. However, there is a specific type of mortgage that offers funds to purchase your dream home and puts money in your pocket to pay for those extras that go along with it.

What is a cashback mortgage?

Cashback mortgages allow you to get up to 5% of your mortgage principal up front to use any way you like.

Like other mortgages, you are still required to have a down payment but you receive your “cashback” in a lump sum when your mortgage closes. This type of mortgages does come with a higher interest rate, however getting money up front can prove to be very beneficial and outweigh the higher rate. For example, if you take out a $350,000 mortgage you’ll get $17,500 back.

What are the benefits of a cashback mortgage?

When you get a cashback mortgage, you are essentially receiving a small monetary sum you can use for whatever you please. Cashback mortgages gives you the freedom to spend money on areas like renovation, decoration, or even vacation after the potential stress of buying a house. It puts money back in your pocket that you can use as you see fit.

This type of mortgage is ideal for first time home buyers because it gives them a good chunk of change to throw at everything involved with purchasing their dream home. Cashback mortgages offer many benefits such as:

  • If you borrowed your down payment from a relative, you can pay them back with the lump sum you receive on your closing date
  • Besides home furnishings and renovations, you can use the money for closings costs and other associated charges of home ownership like lawyer’s fees, land transfer tax, and other considerations.

Do all lenders provide cash back mortgages?

Unfortunately, only certain lenders offer this type of mortgage. Because cashback mortgages are not available through all lenders, it’s important to use the services of a broker. Mortgage brokers have relationships with different lenders and can find the right one to match your needs. It’s key to remember that not all mortgages are created equally and brokers are skilled at finding one that is tailored to fit your financial situation.

Cashback mortgages are ideal for first time home buyers who need extra funds to cover the associated costs of moving into their new house. Apply now and find out if you qualify for a cashback mortgage.


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Your home is your most valuable asset. It is probably the single largest investment you will make in your lifetime. Your home is more than a place to rest your head and raise a family. Your home contains equity. It is a treasured resource and in some cases, can even be used as an ATM (aka cash back mortgages and HELOCs – don’t worry we’ll get there).

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