A cash back mortgage provides 3%-5% of your purchase price, 'cashed back' to you on closing day. It is ideal for clients who need money for legal fees, furnishing and decorating, or other moving expenses. It can also be used as a down payment like flex down program (borrowed down payment).
For purchasing of $100K condo, client can literally pay nothing down, with the use of 5% cash back mortgage. The mortgage loan will be the entire $100K. Note, though, the interest rate on cash back is generally higher (not a fully discounted rate).
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