Cash Back Mortgages By Jordan St. Pierre-The Mortgage Centre
When it comes to purchasing a house, most home buyers assume that paying the price of a property will be their only major expense. However, after buying a house, you may want to renovate it to suit your needs, add new furniture, or retain some buffer cash to aid with your maintenance expenses. To achieve these requirements, you need liquid funds, either in the form of savings or borrowings.
Acquiring a mortgage requires you to spend most of your money on your down payment, legal fees, and other expenses, which can leave you with insufficient savings to spare. Fortunately, many lenders have recognized this financial challenge and are willing to provide mortgages that include a cash back rebate. With this rebate, you can obtain a lump sum after your mortgage closes, and use it to fund your additional expenses.
How do cash back mortgages work?
The purpose of a cash back mortgage is to provide cash back to you when completing a purchase of a new home or renewing your mortgage. This means that you can opt to acquire a certain percentage of money back from your lender once your mortgage is finalized or renewed. The cash back can be used in several ways, like paying down other debts, for your savings, renovations, improvements to the property, new appliances, furnishing, investments, etc.
Who can qualify for a cash back mortgage?
A cash back mortgage product is an excellent solution if you have the need for extra money upon funding of a transaction but do not have extra equity in your home given the current market or the fact that your house was newly acquired. But, for you to procure a cash back mortgage, you need to meet the following criteria:
1. You must have a minimum credit score of 650
2. Your flow of income should be steady
3. Your debt-to-income ratio should be low
4. You need to apply as an owner-occupier, not a renter
If you fit these criteria, you are an ideal candidate for the cash back mortgage. To learn more about this product, you can reach out to Jordan St. Pierre at The Mortgage Centre. I am a mortgage broker in Edmonton, Spruce Grove, Stony Plain, St. Albert, Devon and surrounding areas. I specialize in a broad range of mortgage products tailored to your specific needs, goals, and future plans. I am unbiased and honest at every stage of the mortgage process and encourage you to make your decisions based on what’s best for you and your family. I’ve been in the mortgage industry since 2013 and have helped several families overcome their financial challenges to obtain the home of their dreams. I hope to assist you in a similar manner so you can acquire your homeownership goals as well.