Get 1% cash back from BMO on a 5-year fixed mortgage at 3.54% | 3.56%. APR *Terms and conditions apply. Contact Rodney Biggar, mortgage specialist, about this cash back mortgage offer at (780) 960-5897.


What is a cash back mortgage? With a cash back mortgage, you receive a lump sum cash rebate when your mortgage closes. You can use the money to furnish your home, pay off debt or fill your savings account for a rainy day.


How much will it cost? Interest rates are slightly higher on a cash back mortgage. For example, if you have a mortgage for $350,000 and don’t take any cash back, you would pay approximately $55,830 in interest, using today’s rates, over a 5-year term and have no extra money at closing.

If you take advantage of BMO Bank of Montreal’s 1% cash back promotion, the same mortgage would cost you approximately $57,491, using today’s interest rates,  in interest over a 5-year term. You would receive $3,500 in your pocket at closing.


Let’s do the math. The initial $3,500 1% cash back would only cost you an extra $1,661 over the 5-year term in interest.  You receive approximately $1,839 as bonus money in your pocket.


What if I break a cash back mortgage term early? Like every locked-in mortgage term, there is a pre-payment penalty for breaking the term. With a cash back mortgage, you also owe the remainder of the cash back balance. The balance is prorated and determined by the remaining length of time left on the mortgage.


Porting a cash back mortgage. An option to avoid paying a pre-payment penalty is to port the mortgage to a new property. All of the standard rules apply when porting your cash back mortgage For more information on porting your mortgage click here.


A cash back mortgage can be a great option for home buyers who need to fill a small gap in their finances when buying a new home. If this type of mortgage sounds right for you, give us a call to start a mortgage pre-approval today!

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