Real Estate

Mortgage Cashback Chequing Account Fund from another Bank

  • Last Updated:
  • Apr 24th, 2020 4:30 pm
[OP]
Newbie
Feb 13, 2017
72 posts
9 upvotes
Scarborough

Mortgage Cashback Chequing Account Fund from another Bank

Hi,

In order to qualify for cash back I need to open a chequing account where mortgage payments are withdrawn with same bank. We already have chequing accounts at two other banks and prefer not to close or move everything over to a new bank. The only idea I can think of is sending an etransfer to fund the chequing account that mortgage payments are withdrawn. Are there any other options or to automate funding the payment account?
4 replies
Deal Addict
User avatar
Jan 2, 2012
3830 posts
1677 upvotes
Toronto
anthonyvl7101084 wrote: Hi,

In order to qualify for cash back I need to open a chequing account where mortgage payments are withdrawn with same bank. We already have chequing accounts at two other banks and prefer not to close or move everything over to a new bank. The only idea I can think of is sending an etransfer to fund the chequing account that mortgage payments are withdrawn. Are there any other options or to automate funding the payment account?
Is there some condition on how long you need to keep the account there for mortgage payments? Or after a few months can you simply change the source where mortgage payments come from, and just close out the chequing acct from lender?
[OP]
Newbie
Feb 13, 2017
72 posts
9 upvotes
Scarborough
As far as I understand from the terms/conditions the account must be used for payment for the term of the mortgage.
Deal Addict
Mar 27, 2004
4420 posts
2034 upvotes
Toronto
Sounds like CIBC.
Full-time Realtor
Member
Oct 12, 2005
308 posts
267 upvotes
BC
You can use an online bank account and set up two automatic transfers to automate the process:

1 - Your bank to online bank
2 - Online bank to mortgage FI

I have done this before with Tangerine. The transfers take 1-2 business days so you’ll want to initiate the transfer about 5 days prior to the payment. I’d also recommend getting overdraft on the online bank account just in case the transfer comes in late.

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