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In reference to a mortgage, cash back can be given to a borrower on the day of completion of the mortgage. It is usually a percentage of the actual mortgage amount.

IE. I want to buy a home and I don't have a down payment. I take a Cash Back mortgage which lends me the 5% down for a period of time, such as 5 or 7 years. I pay a slightly higher rate of interest during that time because I have received

money over and above what I need for the mortgage.

This is done all the time, but only if the credit score is over 650

This information is relevant in Canada.

++ It has another meaning in the UK: "Cash Back" is frequently offered in supermarkets when paying for purchases by card, and means simply withdrawing cash against your own account, on that card, with the shop giving you the physical money.

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11y ago

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Q: What is cash back?
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