Cash Back Mortgages
Cash back mortgages are becoming increasingly popular among borrowers, particularly those who have limited down payments. Various lenders offer cash back programs, allowing a percentage of the property's value to be rebated to the borrower upon closing.
The cash back option can definitely help when it comes to paying closing costs, but borrowers should be aware that these products usually come with the following disadvantages:
- higher interest rates
- having to possibly repay back some of the cash back if you break your mortgage early in addition to the standard pre-payment charges
Who can qualify
To qualify for cash back mortgages you must:
- ~be salaried or hourly-paid (not self-employed)
- ~have to have a credit score or Beacon score of 650 or better
- ~the subject property must be owner-occupied
Cash Back Mortgages for Closing Costs
If you have some money for a down payment but may need a smaller amount for cover other expenses, then a smaller cash back mortgage is the perfect fit for you. You receive anywhere between 1% and 3% cash back on the mortgage to help with the closing costs, furniture and even paying off some other debts.
Flex Down or Borrowed Down Payment
This is slightly different from a cash back in that you can borrow your down payment from a line of credit, credit card or personal loan. You can even use gifted down payment from immediate family members provided that you have good credit and stable income.
We have access to lenders that offer variety of lending solutions. As the experts in this unique area of financing, we can walk you through the each type of cash back mortgage available. We will go over the benefits and drawbacks to ensure you are making the right decision.
Give us a call today at 647-893-2535 to find out more about your mortgage options. Keep in mind that our services are FREE to you.
Information provided by Snezhana Todorova, Mortgage Agent, Lic #M13000122. Dominion Lending Centres Mortgage Watch Lic#12044.
Snezhana can be reached at 647-893-2535 or firstname.lastname@example.org