Cash Back Mortgages
Get a lump sum of cash at closing to cover moving costs, renovations, or closing costs — built right into your mortgage.
A cash back mortgage gives you a lump sum of cash at closing — typically 1% to 7% of your mortgage amount — in exchange for a slightly higher interest rate. Calgary Mortgage Shoppe helps you evaluate whether a cash back mortgage makes financial sense for your situation and finds the most competitive cash back offers available.
Why Choose Calgary Mortgage Shoppe?
- Receive 1%u20137% of mortgage amount as cash at closing
- Cover closing costs without dipping into savings
- Fund renovations immediately at possession
- Transparent rate vs. cash trade-off analysis
- Clear explanation of all clawback provisions
- Available from multiple A-lenders
- Can be combined with other mortgage features
- Free comparison: cash back vs. best rate scenario
Frequently Asked Questions
How much cash back can I receive?
Cash back amounts typically range from 1% to 7% of your mortgage amount, depending on the lender and the specific promotion. On a $500,000 mortgage, a 5% cash back offer would put $25,000 in your pocket at closing.
Do I pay a higher rate with a cash back mortgage?
Yes u2014 cash back mortgages come with a higher rate than the lender's best available rate, typically 0.50%u20131.00% higher. We will run the numbers for you to determine whether the cash benefit outweighs the additional interest cost over your term.
What happens if I break the mortgage early?
Most cash back mortgages include a clawback provision. If you break the mortgage before the term ends, you must repay a prorated portion of the cash received. We explain this clearly upfront so there are no surprises.
Is the cash back amount taxable?
For a primary residence, the cash back is generally not considered taxable income. However, if the property is an investment or rental, the treatment may differ. We recommend consulting with your accountant for your specific situation.
Can I use cash back for my down payment?
No. CMHC and lender rules prohibit using cash back funds as part of your down payment. The cash is received at closing after your down payment has already been made.