Cash Back Mortgages
Cash-back Down Payments Dead - This Week
The door is closing on one of the last remaining forms of 100% financing.
On June 30, 2015 insurers are banning cash-back down payment mortgages. Only a handful of lenders still market these products, and they’re all provincially-regulated credit unions. OSFI has effectively barred cash-back down payment mortgages at the federal level (e.g., at banks). Despite questions about the risk of these products, they’ve been an almost insignificant concern for the mortgage market. The fact is, their uptake has been extremely low. Most people find a way to scrape up a 5% down payment and avoid paying posted rates for 100%
