Are you interested in finding out more about, Cash Back Mortgages?
I think everyone believes the cash back mortgage is no longer available – but that isn’t the case according to Pauline Tonkin, independent mortgage broker.
“Changes by the Ministry of Finance announced in June 2012 affected the maximum amortization for high ratio mortgages, loan to values on secured lines of credit and debt servicing ratios for qualifying. In addition the discontinuation of cash back mortgages of 5% used for down payment have taken affect with some lenders while others will follow to meet the new rules.
The cash back mortgage for down payment is no longer available – however – the cash back program from some lenders through the broker channel offering rates of around 4% with up to 3% cash back are still here. Although the cash back can’t be used for down payment it can be used for closing costs, debt pay down, renovations and such. Alternatively for those refinancing their home a cash back can be used to cover the cost of a mortgage penalty from the existing lender or other debt payments.
With competitive rates the cash back program is a great option.”
If you have any questions Pauline would be happy to help. Let me know and I’ll put you in contact with Pauline.