What Are Mortgage Cashback Offers?
When shopping for a mortgage, you might come across lenders offering cashback incentives—sometimes $1,000, $2,000, or more—if you open a bank account with them and have your mortgage payments come directly from it. Sounds like a great deal, right? Not always.
Watch my video or read on for more details!
Why Do Lenders Offer Cashback?
Lenders aren’t offering deals out of kindness. They want sticky clients—borrowers who stay with them for years, maximizing their profits. By getting you to open an account and link your mortgage payments, they make it harder for you to leave when your renewal comes up.
Is a Cashback Mortgage a Good Deal?
It depends. Some cashback deals come with:
- Slightly better mortgage rates
- Immediate extra cash (which can be useful for closing costs)
Watch out for:
- Higher overall interest costs over time
- Restrictions that make switching lenders harder in the future
How to Decide What’s Best for You
Cashback offers can be beneficial in the right scenario, but they’re not always the best deal. Before committing, I can review your options to ensure you’re making the best financial decision.
If you’re looking to get pre-approved for a mortgage to buy a property in Edmonton, fill out my online application. I’m here to help you every step of the way.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.
