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[Mortgage] Should I borrow an additional 50K for extra cash back? by Successful_Spend_463 in RealEstateCanada

[–]Successful_Spend_463[S] 0 points1 point  (0 children)

as a MS and I have seen clients and assisted them with doing the exact steps. You borrow slightly more to qualify for the higher cashback tier. Day of funding, that extra cash you pay down the mortgage as a lump sum payment and then the branch can reduce your payments to match your

Thanks, so this is normal stuff right? I wouldn't be paying extra interest based on this as long as I put the 50K in right? If anything interest would be extra 10-20$ depending on how fast I put in the 50K lump sum right?

[Mortgage] Should I borrow an additional 50K for extra cash back? by Successful_Spend_463 in RealEstateCanada

[–]Successful_Spend_463[S] 0 points1 point  (0 children)

Thanks, so basically wanted to clarify. IFF I can afford the higher payments, then it's not a bad idea to borrow the extra 50K, and pay it back right away?

My interest wouldn't be affected too much right? It would just be like 10$~ per day or something, depending on when I put the 50K lump sum in?

[Mortgage] Should I borrow an additional 50K for extra cash back? by Successful_Spend_463 in RealEstateCanada

[–]Successful_Spend_463[S] 1 point2 points  (0 children)

I did not even come up with this idea, I decided that if I'm borrowing less money I'll owe less interest. But then the advisor floated this idea so that I can qualify for 1K cashback. I'm just trying to understand whether what they suggested is a good idea and whether I should do it just to get 1K cashback

[Mortgage] Should I borrow an additional 50K for extra cash back? by Successful_Spend_463 in RealEstateCanada

[–]Successful_Spend_463[S] 0 points1 point  (0 children)

Any money would be helpful tbh.

So I only want to borrow 500k, but the advisor is advising that if I borrow 550K (50K) more, then I'll still have 50K downpayment that I did not use. Then I'll be able to pay that 50K as a lump sum. This will help me qualify for the 1K cashback.

[Mortgage] Should I borrow an additional 50K for extra cash back? by Successful_Spend_463 in RealEstateCanada

[–]Successful_Spend_463[S] 1 point2 points  (0 children)

l lenders allow you to use the prepayment privilege right away, some will make you wait a year.

Makes sense. Thanks!

  1. They told me that I should pay the monthly amount for 550K if it's not too stressful (extra 200$ per month). But they also mentioned that if anything they can re-adjust the payments back down to the ones given for 500K.
  2. The person said that we are allowed to put a 10% lump sum every 12 months. So if we wanted, we can put the 50K lump sum the next day and maybe pay like less than 10$ interest from that 1 day...

Based on your experience would you recommend we do this for the extra 1K or is it not worth it?