Real Estate

Does any mortgage broker offer cash back?

  • Last Updated:
  • Feb 12th, 2020 7:03 am
[OP]
Newbie
Feb 15, 2019
18 posts

Does any mortgage broker offer cash back?

Hello I am looking to buy a property and have been looking at different mortgage rate online. Website like "https://www.moneysense.ca/best-mortgage-rates-canada/" and "https://www.ratesupermarket.ca/mortgage_rates" offers 2.65% 5-year variable. I am not sure if the individual mortgage broker can offer the same rate as those website? Or does any individual mortgage broker offer cash back because I think some of the online mortgage agency offer cash back?

Thanks
15 replies
Deal Fanatic
Mar 27, 2004
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Get a mortgage license and do it yourself.
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Aug 2, 2010
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oasis100 wrote: Get a mortgage license and do it yourself.
Wow you sure know how to add a lot of value to a thread...
Deal Addict
Jan 15, 2017
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It is rare for a mortgage broker to offer cash back on a mortgage.

There are mortgage lenders that sometimes offer cash back mortgages. That is a particular mortgage product and the cash back is coming from the lender, not the broker.

There are some mortgage brokers that incentivize mortgage offers by buying down the rate. The mortgage broker uses part of the commission that they would be paid by paying down the total interest due on the mortgage and hence, reducing the interest rate.
Member
Oct 21, 2013
284 posts
140 upvotes
waterloo, on
I went with a bank for mortgage on my last house. Agent gave us 500$ cashback to match the price. Don't know if its a norm though. I have seen lenders advertising cash back. try asking a mortgage agent in the official mortgage thread.
Serving Kitchener/Waterloo/Guelph/London/Hamilton/Niagara and surrounding areas
[OP]
Newbie
Feb 15, 2019
18 posts
skeet50 wrote: It is rare for a mortgage broker to offer cash back on a mortgage.

There are mortgage lenders that sometimes offer cash back mortgages. That is a particular mortgage product and the cash back is coming from the lender, not the broker.

There are some mortgage brokers that incentivize mortgage offers by buying down the rate. The mortgage broker uses part of the commission that they would be paid by paying down the total interest due on the mortgage and hence, reducing the interest rate.
Thank you very much for the reply. So it means that the mortgage brokers will only use a portion of their commission of buy down the rate a bit, instead of offering cash back? I wonder how to find those mortgage brokers? My source of mortgage information is mainly from "ratehub.ca" and "ratesupermarket.ca" and these websites don't show the rates from individual brokers (they only show the rate from online brokerage and banks). Today when I check "ratehub.ca", the lowest rate is 2.61% 5-year variable from an online brokerage called Butler Mortgage.
[OP]
Newbie
Feb 15, 2019
18 posts
DealsFreak wrote: I went with a bank for mortgage on my last house. Agent gave us 500$ cashback to match the price. Don't know if its a norm though. I have seen lenders advertising cash back. try asking a mortgage agent in the official mortgage thread.
Thank you very much for the reply. I also heard that the CIBC offer 500 cash back on mortgage before. But right now it seems that the banks' rate are a lot higher than those individual mortgage brokers and online brokerage. I just see that HSBC's has 2.74% 5-year fixed rate. I wonder is HSBC a good lender? Is this deal too good to be true? I wonder if there is any hidden fee/catches with this rate. Or maybe HSBC has selective criteria in terms of lending mortgages and it is very hard to get the mortgage approved at this 2.74% 5-year fixed rate?
Member
Oct 21, 2013
284 posts
140 upvotes
waterloo, on
bottomline123 wrote: Thank you very much for the reply. I also heard that the CIBC offer 500 cash back on mortgage before. But right now it seems that the banks' rate are a lot higher than those individual mortgage brokers and online brokerage. I just see that HSBC's has 2.74% 5-year fixed rate. I wonder is HSBC a good lender? Is this deal too good to be true? I wonder if there is any hidden fee/catches with this rate. Or maybe HSBC has selective criteria in terms of lending mortgages and it is very hard to get the mortgage approved at this 2.74% 5-year fixed rate?

I did get 500 from cibc. so may be it is something they do. In general, bank rates are always higher than others for straight forward cases. I have dealt with bank and broker both and i will choose broker alway in future.

2.74 is too good to be true. becuase lowest i have seen is 2.79. .. Usually they say "xx rate after yy amount of cashback. Actual rate of zz applies" or something along those lines. HSBC is a popular bank so i won't doubt it for its credibility. you need to ask the person you are dealing with for catches or cashbacks involved in the deal.
Serving Kitchener/Waterloo/Guelph/London/Hamilton/Niagara and surrounding areas
[OP]
Newbie
Feb 15, 2019
18 posts
DealsFreak wrote: I did get 500 from cibc. so may be it is something they do. In general, bank rates are always higher than others for straight forward cases. I have dealt with bank and broker both and i will choose broker alway in future.

2.74 is too good to be true. becuase lowest i have seen is 2.79. .. Usually they say "xx rate after yy amount of cashback. Actual rate of zz applies" or something along those lines. HSBC is a popular bank so i won't doubt it for its credibility. you need to ask the person you are dealing with for catches or cashbacks involved in the deal.
Can I ask why always choose brokers over banks? For the same rate and terms & conditions, does broker always beat the bank? It seems that not every broker will buy part of commission to buy down the rate a bit.

Yes, I definitely call HSBC and ask directly. I email them and they said the approval process may take one month. I think it is really long for mortgage approval (I think other brokers can do it within 24 hours).

Thank you.
Member
Oct 21, 2013
284 posts
140 upvotes
waterloo, on
bottomline123 wrote: Can I ask why always choose brokers over banks? For the same rate and terms & conditions, does broker always beat the bank? It seems that not every broker will buy part of commission to buy down the rate a bit.

Yes, I definitely call HSBC and ask directly. I email them and they said the approval process may take one month. I think it is really long for mortgage approval (I think other brokers can do it within 24 hours).

Thank you.
From what i have seen, banks won't match the rates of credit unions or other lenders. They tend to match only other bank's rates. atleast thats what my agent at cibc told me. If you are getting same rate, conditions and everything then by all means go with a bank. big banks have apps and stuff where managing a mortgage is easier.

1 month for approval is ALOT. 5 days is standard. 24 hrs is even better.
Serving Kitchener/Waterloo/Guelph/London/Hamilton/Niagara and surrounding areas
Deal Fanatic
Mar 27, 2004
5102 posts
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Toronto
eonibm wrote: Wow you sure know how to add a lot of value to a thread...
Isn't this what you tell buyers, get their own real estate license. Smiling Face With Open Mouth
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Aug 2, 2010
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oasis100 wrote: Isn't this what you tell buyers, get their own real estate license. Smiling Face With Open Mouth
No I don't just tell buyers that if you care to read my thread on it. Sheesh! Even my first post there is many thousands of words compared to your 8 words of 'advice', in which you embarrassed yourself. Unlike the many hundreds of RFD members and others who have taken my advice yours is relegated to the trash bin.
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Dec 13, 2007
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I asked a few brokers this week if wanted to do paperwork for reverse mortgage. If they got atleast 1 per cent they would have pocketed $2000 but all more or less said not enough money in it for them to give back any commission. Actually I think I read that one of the two lenders pays more than 1 percent for brokers that have generated
a certain amount of past business.
Deal Addict
Nov 13, 2013
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Ottawa
bottomline123 wrote: Thank you very much for the reply. So it means that the mortgage brokers will only use a portion of their commission of buy down the rate a bit, instead of offering cash back? I wonder how to find those mortgage brokers? My source of mortgage information is mainly from "ratehub.ca" and "ratesupermarket.ca" and these websites don't show the rates from individual brokers (they only show the rate from online brokerage and banks). Today when I check "ratehub.ca", the lowest rate is 2.61% 5-year variable from an online brokerage called Butler Mortgage.
Yes Butler is buying down the rate. Frankly IMHO only an idiot would use a broker not buying down the max. There is a mortgage rate thread (sticky) they will all do so there. Post your info and ask for PMs
Deal Fanatic
Nov 22, 2015
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oasis100 wrote: Isn't this what you tell buyers, get their own real estate license. Smiling Face With Open Mouth
What does a real estate license have to do with getting a mortgage??

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