You have probably heard that some lenders offer a cash-back incentive when you open a bank account with them, but when it comes to mortgages, how does it work?

There are two types of cash-back incentives when it comes to mortgage financing. Here we will outline the two different incentives for you…


  • Use the lender’s institution for mortgage payment withdrawal. Typically opening a new bank account where your mortgage payment is withdrawn OR using an existing account at the same institution in some cases. Some lenders may ask for you to open up to 2 new products.
  • Seasonal Incentives with payout structures that vary based on the mortgage amount, typically ranging from $500 – $5,000
  • Typically reserved for fixed or variable terms of 3 years or greater.
  • Can be clawed back/payable back to the lender in the event you break the mortgage before your term is up. This varies lender to lender and might be prorated based on time remaining in the term. 

Cash Back Mortgages

  • Cash-back incentive paid on closing to the solicitor based on the mortgage amount advanced.
  • Cash-back can range from 1-5% of the mortgage amount
  • Rate premiums apply and are based on how much cashback is given.
  • Typically used to fund furniture, a renovation or to pay off debts (or whatever you like) 
  • Always clawed back if the mortgage is broken prior to maturity, some lenders may prorate based on how long is left on your term.

Speaking with your mortgage broker to assess your financial goals and needs can help determine your eligibility for a seasonal promotion or whether a cash-back mortgage suits you.