Feeling The Winter Chill? Heat Up with CP24’s Hot Property!
December 6, 2012
Don’t forget to catch the leading Canadian Mortgage and Canadian Real Estate show, CP24’s Hot Property, every Thursday night at 7:15PM!
This week’s ‘Burning Topic’ will be Cash Back Mortgages, a much talked about mortgage product that very few Canadians understand fully.
What is a Cash Back Mortgage?
Cash back mortgages are exactly what the big Canadian banks say they are…give me your mortgage and I will give you cash back.
When you hear this from a big bank, always remember this saying, “Nobody gives you money for free”.
Banks take advantage of potentially poor money management skills by offering up a bad deal for their client.
Any bank offering a Cash Back mortgage product should remove any reference in their advertising that they are providing good financial advice.
Ask your advisor, “How does the consumer benefit?”
Cash back mortgages are loaded with pitfalls that put more money in your bank’s pocket and not your own.
Cash Back mortgages come with a higher interest rate.
The higher interest rates associated with Cash Back mortgages actually cost more than the ‘cash back’ value consumers receive in a Cash Back mortgage.
Breaking a cash back mortgages hurts twice as much
First, you have to pay back the pro-rated amount of the ‘cash back’ you received because you did not fulfill your end of the contract.
Second, your penalty on the Cash Back mortgage will be calculated at the higher interest rate costing you hundreds or thousands more.
What is the bottom line for consumers?
Canadians will be poorer at the end of a Cash Back mortgage than if they did not take the Cash Back mortgage; the message is simple, avoid the Cash Back mortgage if possible.
Learn more about cash back mortgages and many other Canadian mortgage topics on CP24’s Hot Property every Thursday night at 7:15PM. Each episode stars one of Canada’s top mortgage brokers or agents from Canada’s Premier Mortgage Brokerage – MonsterMortgage.ca.
If you would like to watch previous Hot Property episodes, you can catch previous Hot Property episodes on the CP24 site here. If you have any questions regarding Cash Back mortgages or any other Canadian mortgages, call MonsterMortgage.ca or fill out a contact request.