Published by DLC Marketing Team

Interest rates on savings accounts and GICs are climbing but they are having a hard time matching the rapid increase in inflation which is now over 8% — you are actually losing money by holding cash. Investing in financial markets can provide higher returns, but there are no guarantees and as we have seen lately, they can be volatile. As someone who is new to investing, you may be asking yourself:

• What do I invest in?

• How do I evaluate and manage my risk?

• Should I consult a financial advisor?

These are all great questions and we have compiled some basic advice below to help you get started.

DIY isn’t just for home repairs
There are lots of online options to invest in financial markets on your own without anyone required to facilitate the transaction. You can easily open a trading account and buy and sell individual stocks and various other investments (ETFs for example). This approach has become widespread because it is the cheapest investing option available and is very convenient, but only if you have the time and motivation to learn or a trusted mentor to help you get started.

Seek professional help?
You could choose to consult with a financial advisor. Many of them have professional accreditation and offer advice and can make transactions on your behalf. Make sure you understand how they will be paid as seemingly small annual fees can have a huge effect on how fast your investment grows over the years. Some investment advisors also require a substantial minimum investment before they will work with you, and they may offer only a limited range of investment products.

Rely on Technology?
A robo-advisor is an online investing platform that falls between the DIY approach and a financial advisor in terms of user-friendliness. Most banks and online investment firms offer this service. Robo-advisors use a live interview or online questionnaire to create, and then continuously manage a portfolio based on the information and risk preferences you provide. They require little sophistication on the user’s part, they have a small or no minimum amount to get started, and the fees are reasonable —usually around 0.5%.

Fees can take a real bite
We have mentioned fees for all three options above (DIY, financial advisor, robo-advisor) because most people don’t understand how a seemingly small annual fee can rob your investment fund over the years. A $100,000 in a mutual fund with a 2% annual fee (MER on a mutual fund for example) earning a 5% return will grow to $209,378 in 25 years. That same $100,000 invested in an ETF with a 0.2% annual fee earning a 5% return for 25 years will grow to $322,873. Mutual funds are a popular option for TFSAs & RRSPs, but you should investigate the fees and whether the returns they are providing justify their cost.

There are many options when it comes to investing in the markets and the choice is entirely up to you — make sure to do your homework and make informed decisions.

For powerful personal finance education and training with immediate results, check out the complimentary livestreams each week from Enriched Academy. View the schedule and sign up for upcoming sessions on their events page.

Published by DLC Marketing team.

One of the biggest benefits to purchasing your own home is the ability to build equity in your property. This equity can come in handy down the line for refinancing, renovations, or taking out additional loans – such as a second mortgage.

What is a second mortgage?

First things first, a second mortgage refers to an additional or secondary loan taken out on a property for which you already have a mortgage. This is not the same as purchasing a second home or property and taking out a separate mortgage for that. A second mortgage is a very different product from a traditional mortgage as you are using your existing home equity to qualify for the loan and put up in case of default. Similar to a traditional mortgage, a second mortgage will also come with its own interest rate, monthly payments, set terms, closing costs and more.

Second mortgages versus refinancing

As both refinancing your existing mortgage and taking out a second mortgage can take advantage of existing home equity, it is a good idea to look at the differences between them. Firstly, a refinance is typically only done when you’re at the end of your current mortgage term so as to avoid any penalties with refinancing the mortgage.

The purpose of refinancing is often to take advantage of a lower interest rate, change your mortgage terms or, in some cases, borrow against your home equity.

When you get a second mortgage, you are able to borrow a lump sum against the equity in your current home and can use that money for whatever purpose you see fit. You can even choose to borrow in installments through a credit line and refinance your second mortgage in the future.

What are the advantages of a second mortgage?

There are several advantages when it comes to taking out a second mortgage, including:

• The ability to access a large loan sum (in some cases, up to 90% of your home equity) which is more than you can typically borrow on other traditional loans.
• Better interest rate than a credit card as they are a ‘secured’ form of debt.
• You can use the money however you see fit without any caveats.

What are the disadvantages of a second mortgage?

As always, when it comes to taking out an additional loan, there are a few things to consider:

• Interest rates tend to be higher on a second mortgage than refinancing your mortgage.
• Additional financial pressure from carrying a second loan and another set of monthly bills.

Before looking into any additional loans, such as a secondary mortgage (or even refinancing), be sure to speak to your DLC Mortgage Expert! Regardless of why you are considering a second mortgage, it is a good idea to get a review of your current financial situation and determine if this is the best solution before proceeding.

Published by DLC Marketing team.

Not all insurance products are created equal. One of the most common mistakes homeowners and potential homeowners make is that they hear the word “insurance” and just assume they have it! Well, you might have one kind of insurance, but you might be missing coverage elsewhere. It is important to understand all the different insurance products to ensure you have proper coverage.

To help you get a better understanding of the insurance, below are the four main insurance product options you will encounter and what they mean:

Default Insurance: This insurance is mandatory for homes where the buyer puts less than 20% down. In fact, default insurance is the reason that lenders accept lower down payments, such as 5% minimum, and actually helps these buyers access comparable interest rates typically offered with larger down payments.

Default insurance typically requires a premium, which is based on the loan-to-value ratio (mortgage loan amount divided by the purchase price). This premium can be paid in a single lump sum, or it can be added to your mortgage and included in your monthly payments.

In Canada, most homeowners know of the Canada Mortgage and Housing Corporation (CMHC), which is run by the federal government, and have used them in the past. But did you know? We also have two private companies, Sagen Financial and Canada Guaranty, who can also provide this insurance.

Home (Property & Fire) Insurance: Next, we have another mandatory insurance option, property and fire coverage (or, home insurance, as most people know it by). This is number two on our list as it MUST be in place before you close the mortgage! It is especially important to note that not all homes or properties are insurable, so you will want to review this sooner rather than later.

In addition to protecting against fire damage, home insurance can also cover the contents of your home (depending on your policy). This is important for anyone looking at purchasing condos or townhouses as the strata insurance typically protects the building itself and common areas, as well as your suit “as is”, but it will not account for your personal belongings or any upgrades you made. Be sure to cross-check your strata insurance policy and take out an individual one on your unit to cover the difference.

One final thing to consider is that you may not be covered in the event of a flood or earthquake. You may need to purchase additional coverage to be protected from a natural disaster, depending on your location.

Title Insurance: Another insurance policy that potential homeowners may encounter is known as “title insurance”. When it comes to lenders, this insurance is mandatory with every single lender in Canada requiring you to purchase title insurance on their behalf.

In addition, you have the option of purchasing this for yourself as a homeowner. The benefit of title insurance is that it can protect you from existing liens on the property’s title, but the most common benefit is protection against title fraud. Title fraud typically involves someone using stolen personal information, or forged documents to transfer your home’s title to him or herself – without your knowledge.

Similar to default insurance, title insurance is charged as a one-time fee or a premium with the cost based on the value of your property.

Mortgage Protection Plan: Lastly, we have our mortgage protection plan coverage. This is optional coverage, but one that any agent can tell you is extremely important. The purpose of the mortgage protection plan is to protect you, and your family, should something happen. It acts as a disability and a life insurance policy in regards to your mortgage.

Typically, when you get approval for a mortgage, it is based on family income. If one of the partners in the mortgage is no longer able to contribute due to disability or death, a mortgage protection plan gives you protection for your mortgage payments.

If you have any questions about mortgage insurance or what are the best options for you, please do not hesitate to reach out to a Dominion Lending Centres mortgage expert for professional advice! They can take a look at your existing plan and discuss your needs to help you find the perfect coverage to suit you and your family.

Published by DLC Marketing team.

We often hear the mantra, “pay yourself first” when it comes to personal finance. This concept of automatically routing some of your salary every payday (before you can spend it!) into a retirement investment account isn’t hard to understand, but it’s hard to implement if you need every nickel just to survive until your next paycheque.

Discipline and dedication to the cause will help, but they are only part of the savings solution. The fact is that to succeed at saving in today’s world, most of us will need to earn more and spend less. Making more money will help you mow down any and all expenses that pop up along the way and leave you with more money in your jeans. However, any size paycheque goes a lot farther when supplemented with restraint and monitoring to control expenses at their source… before they vacuum up your potential savings.

Making more money is often preferred to budgeting as cutting back can be painful, but there are definitely some drawbacks. More income means more taxes and it many also lower benefits like your GST rebate or CCB benefits. If your tax rate is around 20%, an extra hour at $15 hour will have the same effect as cutting about $12 from the household budget.

Working more will also rob you of precious free time so there are significant social costs as well. If you have to incur additional expenses such as a babysitter or dining out more because you have less time or energy to cook, those costs need to be factored in as well.

Perhaps the biggest problem with working more is the very strong tendency to spend more! This is where discipline and determination come into play — make sure you earmark that extra money for saving and try to keep your expenses at the current level. Making more money won’t solve your problems if you continue to spend too much, make poor spending decisions, fail to invest, and have no goals to help motivate you and measure your financial progress.

You should also look at your debt cost to see if you should be saving in the first place! If you carry a credit card balance for example, you should definitely be throwing everything you have at it instead of saving. Even with the recent rise in interest rates, you would be lucky to get 4% on cash savings — most credit cards have rates four or five times that figure. You could also invest any extra money, but you have to add in the risk factor, and you would be hard-pressed to get returns that exceed the interest rate on most credit cards.

Turning to defensive savings strategies, there are countless articles churned out every day on how to spend less, and they may yield some good tips that are practical for your situation. Look for easy things like taking advantage of grocery store bargains, collecting points or discounts on a credit card (but paying the balance in full every month!), or clipping coupons.

There is no end to the money-saving ideas and hacks, but the first step is to know your costs. You can’t kill what you can’t see, and household expenses are no exception. You need to track all your expenses for at least a month and analyze where your money is going.

You may find some low-hanging fruits like a lightly used membership you could cancel, or maybe you didn’t realize how much those nights out on the town are adding up to every month. On the other hand, you may find the low-hanging fruit is long gone and that making more money is your only way forward! Make sure to track your expenses first and give yourself a realistic starting number before you dive into a more austere budget.

Finding the cash to start saving and investing is becoming increasingly difficult these days and while more income will certainly help, you will also need to continuously manage your expenses and make smart buying decisions to really pile up the savings.

For powerful personal finance education and training with immediate results, check out the complimentary livestreams each week from Enriched Academy. View the schedule and sign up for upcoming sessions on their events page.

Published by HomeEquity Bank

If you are an individual aged 55+, it may surprise you that you currently represent 33.09% of the total Canadian population. What may not surprise you, is that Canadians 55+ know what they want in order to live a fulfilling life as they enter retirement. However, they do not always have the financial means or are unaware of the financial options available to them to support their lifestyles into retirement.

Here are some of the financial options available to Canadians in retirement:

1. Credit Cards: Credit cards may be the perfect financial option for you if you are a retired individual with an income source and short-term financial needs. They give you easy access to credit that you can use to meet your short-term financial needs. However, keep in mind that credit cards require a monthly payment. So, if you do not wish to take on high interest debt, it is best to always have a concrete plan to pay off the borrowed amount before the deadline.

2. Private Loans: Private loans are another option for retired individuals with an income source and short-term financial needs. Like credit cards, they give you easy access to credit but have required monthly payments. Furthermore, having a reasonable repayment plan is important as they charge very high interest and repayment terms are very rigid.

3. Home Equity Line of Credit (HELOC): If you are a retired homeowner that has an income source and need a large sum of money immediately or over a period then, it may be worthwhile to explore HELOC as a financial option. HELOC allows you to borrow a large sum of money for your financial needs. However, it is also important to consider that HELOCs require monthly payments, the qualification for the loan can change based on changes to your income or home value, and you may be asked to repay the loan at any time if it is called.

4. Downsizing: Downsizing is a popular financial option and may be great for you if you are a homeowner in an urban area willing to transition into a smaller home located in a rural area. Downsizing allows you to access the value of your home’s equity to meet your financing needs in retirement. However, it is crucial to note the land transfer fees, commissions, moving costs associated with downsizing, and having to say goodbye to the home and community you have grown accustomed to.

Now, before revealing the fifth financial option for Canadians in retirement, you may find it interesting that a study from the National Institute of Ageing showed that 91% of all Canadians want to remain in their own homes for as long as possible after retirement. Furthermore, 95% of Canadians 45+ say that being able to retire in their own homes would give them the independence, comfort, and dignity they need as they age. However, due to costs associated with in-home care, many individuals cannotto remain in their homes. If you are among these Canadians, then the fifth financial option provided below may be the most suitable for you.

5. CHIP Reverse Mortgage: If you are a retired Canadian homeowner who wishes to remain in your dwelling while maintaining your current lifestyle, you have to look no further than the CHIP Reverse Mortgage. This finance option allows you to access up to 55% of your home’s equity value to meet your short- and long-term financial needs. With the CHIP Reverse Mortgage, you can choose to receive your money in a tax-free lump sum or tax-free monthly payments. Furthermore, you are not required to make any monthly mortgage payments but instead pay back the loan through the value of your home when you sell it or move out.

As the Canadian population ages, these are just some of the financing options that Canadians can utilize to enjoy retired life.

Contact your DLC mortgage broker to find out how the CHIP Reverse Mortgage by HomeEquity Bank can be a viable option to help you live your best retirement!

Published by DLC Marketing team

It’s time to go back to school… for your finances! The fall is the perfect time for a credit clean-up so that you are ready for the holiday spending season – and anything else the year can throw at you!

When it comes to cleaning up credit, there is no better time than now to recognize the importance of your credit score and check if you are on track with your habits. To get started with your credit clean-up, there are a few things you can do:

Pull Your Credit Report: For most of us, our credit score is something we only think about when we need it. However, if you are unsure of where you stand, this is a great time to find out! The Fair Credit Reporting Act lets you get one free credit report every year through Equifax or TransUnion. Pulling your own credit report results in a “soft” inquiry on your report and will not affect your credit score. Click here to get your free credit report today!
If You Find Errors, Dispute Them: When doing your annual credit score review, it is a good idea to go through line-by-line and confirm no errors. If you find any errors, report and dispute them immediately as they could be affecting your score.
Consolidate Your Loans: One of the best tips for managing your credit and working towards future financial success, is to consolidate your debt. Consolidating debt means reducing multiple loans to a single monthly payment, which typically has a lower interest rate allowing you to maximize spend on the principal amount.
Once you have put the effort into cleaning up your credit, you will want to keep it that way! A few tips for maintaining your credit and maximizing your financial future include:

Pay Your Bills: This seems pretty straight forward, but it is not that simple. You not only have to pay the bills, but you have to do so in full AND on time whenever possible. Paying bills on time is one of the key behaviours lenders and creditors look for when deciding to grant you a loan or mortgage. If you are unable to afford the full amount, a good tip is to at least pay the minimum required as shown on your monthly statement to prevent any flags on your account.
Pay Your Debts: Whether you have credit card debt, a car loan, line of credit or a mortgage, the goal should be to pay your debt off as quickly as possible. To make the most impact, start by paying the lowest debt items first and then work towards the larger amounts. By removing the low debt items, you also remove the interest payments on those loans which frees up money that can be put towards paying off larger items.
Stay Within Your Limit: This is key when it comes to managing debt and maintaining a good credit score. Using all or most of your available credit is not advised. Your goal should be to use 30% or less of your available credit. For instance, if you have a limit of $1000 on your credit card, you should never go over $700.

NOTE: If you find you need more credit, it is better to increase the limit versus utilizing more than 70% of what is available each month.

Whether you qualify for a mortgage through a bank, credit union or other financial institution, you should be aiming for a credit score of 680 for at least one borrower (or guarantor). If you are ready to start your home-buying journey, or are looking to refinance your existing mortgage, a DLC Mortgage Expert can help you review your credit score and financial information to help you get the most from your money.

Published by DLC Marketing team

When it comes to shopping for a mortgage, it is important to know what you need to qualify – but it is just as important to understand some of the reasons why you DON’T qualify so that you can make some changes and budget accordingly for when the time is right.

If you are in the market for a home, make sure you know the 5 major reasons you may not qualify for a mortgage:

1. Too Much Debt

One of the biggest reasons that individuals fail to qualify for a mortgage is that they are carrying too much debt already. This debt can be in the form of credit cards, lines of credit or other loans. Regardless of where the debt comes from, it all contributes to your Total Debt Servicing ratio (TDS), which is one of the qualifiers for a mortgage loan. The goal is for your monthly debt payments to NOT exceed 40% of your gross monthly income.

PRO TIP: Find ways to lessen your expenses, budget or consolidate debt where possible.

2. Credit History

Another indicator of not qualifying for a mortgage can be your credit history. It is always important to pull your credit score before you start house hunting so that you can understand what your credit rating is to help determine what you qualify for. Your credit score is a direct reflection of your potential risk and, if you have a poor credit history then it makes it harder to secure a mortgage loan.

PRO TIP: To improve your credit score, be sure to avoid late or missed payments, exceeding your credit card limit or applying for multiple new credit cards.

3. Insufficient Assets or Income

With rising housing prices and stagnant income levels, one roadblock for mortgage approval can be lacking sufficient income or assets to put against your loan. For some buyers, the only option is to save up more money for your down payment to reduce the overall mortgage or look at suite income or alternative lenders.

4. Not Enough Down Payment

Another reason you may not qualify for a mortgage could be that you do not have enough of a down payment. In Canada, a 20% down payment is required to avoid mortgage default insurance BUT you can still purchase a home with less than 20%; you simply need to account for the insurance premiums, which are calculated as a percentage of the loan and is based on the size of your down payment.

5. Inadequate Employment History

Lastly, employment history can have a big impact on mortgage approval. Most lenders prefer a 2-year consistent employment history. If you do not have an adequate employment history, have been at your job for a short time or do not have a record of long-term positions, you might find it harder to get a mortgage loan.

Whether you’re looking to get your first mortgage, are ready to move or are simply shopping around, understanding what can impact your mortgage application will help ensure you have greater success!

If you are struggling currently with your mortgage approval or have recently been denied – that’s okay! Don’t be deterred. With a little effort and patience, as well as the support of your trusted Dominion Lending Centres mortgage expert, you will be able to put yourself in a better position to reapply in the future!  If you’re ready, contact one of our experts today to discuss your options.

Published. by DLC Marketing team

Thinking about taking a holiday this year but not sure where to go? How about checking out our own backyard! Canada has some incredible vacation locations and parks that are worth checking out:

Sunshine Coast, British Columbia: Considered a local paradise, the Sunshine Coast is a gorgeous and laidback area northwest of Vancouver with dozens of beaches. Home to several resorts and hotels, the Sunshine Coast is the perfect getaway spot! Learn more at sunshinecoastcanada.com

Whistler, British Columbia: It is not surprising Whistler would be on our list. As Canada’s most famous ski resort and a great destination, it’s a popular location! Perfect for outdoor and nature lovers, bikers and hikers and general vacationers, this is the perfect spot to adventure or relax. With dozens of hotel options, you can stay right in Whistler Village and close to the action! Learn more at www.whistler.com

The Canadian Rockies World Heritage Site: Of course, Canada is well-known for our Canadian Rocky Mountain Parks. Complete with Kootenay and Yoho National Parks, the World Heritage Site is an incredible destination. Stay in Banff, Golden, Canmore and explore the world around you! Learn more at www.worldheritagesite.org/list/Canadian+Rocky+Mountain+Parks

Banff and Lake Louise, Alberta: As some of Canada’s most awe-inspiring mountain destinations, Banff National Park and Lake Louise were sure to make their way onto our list! Enjoy electric blue glacial lakes, wildlife, waterfalls and more during your trip. With several hotels and resorts in Banff, you’re sure to find a great spot to hang your coat after your day of adventures! Learn more at www.banfflakelouise.com

Drumheller And The Alberta Badlands: If you haven’t been before, Drumheller and The Alberta Badlands are worth a visit to experience unearthly landscapes and dinosaurs!? Home of The Royal Tyrrel Museum of Paleontology, Drumheller is like stepping into the past. Stay in Drumheller and experience the incredible landscapes that the badlands have to offer! Learn more at https://traveldrumheller.com/hiking-in-the-badlands

Niagara Falls, Ontario: A jewel of Canada, Niagara Falls are very well-known and should be on every traveler’s list! With various attractions including water cruises, wineries, casinos, and more, there is always something fun to do in Niagara Falls. From entertainment and romance, this is a sure win for any traveller! Learn more at niagarafalls.ca

The Muskoka Lakes, Ontario: The Muskoka Lakes were once given the title of “Best Trips” by National Geographic and continue to remain a top destination for anyone wanting to get away! With some newly added accommodations, this once closed in location has been opened up for anyone to enjoy! From basking and boating on the lake to shopping and eating in the various villages around the area, this is sure to make for a great vacation! Learn more at www.muskokalakes.ca/en/index.aspx

Quebec City, Quebec: A beautiful location filled with our heritage, Quebec City is marked by French-Canadian character and European sophistication with incredible architecture and rich history. Famous for their delish poutine and iconic Chateau Frontenac, Quebec City is a world-famous destination for anyone wanting to soak in some culture. Learn more at www.quebec-cite.com/en

Fundy National Park, New Brunswick: We couldn’t have a top vacation locations list without including the beautiful Fundy National Park. Nestled in the beautiful Canadian Atlantic of New Brunswick, this park offers incredible outdoor opportunities from kayaking to camping. With several additional historic sites dotted around the park, there is tons to see! Stay in the Village of Alma or along the coast to maximize your experience. Learn more at www.bayoffundy.com

Cavendish Beach, Prince Edward Island: Backed by dunes and rolling hills, Cavendish Beach is the last stop on our list. With beautiful beaches and the historic Green Gables Heritage Place, Cavendish Beach is one of the best places to visit in Canada. Linger by the water and explore the town of Cavendish! Learn more at cavendishbeachpei.com

Now that you know of some of the most beautiful locations in Canada, it’s time to pack your bags and get travelling! Enjoy!

Published by DLC Marketing Team

The worst financial mistake you can make is believing that a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) is something to look into when you are a little older and more able to set some money aside. The fact is, you don’t use these accounts for saving at all, you use them for investing. Your retirement fund could grow to seven figures, even if you only contribute a fraction of the allowable yearly maximums. They also come with huge tax-saving benefits.

A lot of people get discouraged by the sheer amount that you are allowed to contribute to these registered accounts and the mere pittance they may be able to come up with — don’t fall into that mindset!

If you make 60,000/year from your job, you could contribute over $10,000 to your RRSP and another $6000 to your TFSA every year. Considering you are only going to have about $45K in your jeans after taxes, finding a spare $16K would require more than 30% of your take-home pay!

The good news is that your yearly contribution limits can be carried over and as you grow older (and theoretically have more disposable income) you can catch up. The bad news is that playing catch up isn’t going to happen unless you are very disciplined with your spending. Sure, you may earn more, but you will spend more… kids, cars, vacations, even the cat is going to cost you $800/year!

That extra disposable income you were envisioning may not materialize until you are in your mid 50’s, if ever! You need to scrape together whatever investment savings you can now, even saving just 5% ($200/month) of a $60K salary would make a huge impact.

Putting off getting started is going to cost you way more than you ever imagined in lost investment returns. Ignore the pitiful interest rates you see on bank savings accounts, holding cash will actually cost you money at current interest and inflation rates. However, the average annual return on many stock indexes (S&P, TSX, DSJ) over the past 40 years is around 7%. If you do a little math, you are soon going to realize that even on a relatively small investment of $200 month, the difference between starting when you are 18 versus starting at age 28 is jaw dropping.

Investing $200/month from age 18 to 65 at 7% would give you $790,139. The same $200 at the same rate from age 28 to 65 would yield just $384,810. Sure, you would be contributing $24,000 more over that extra 10 years, but your nest egg at 65 would be double — more than enough to keep you poolside at a nice resort every winter while those late starters are stuck in the snow!

There are plenty of rules, regulations and strategies to consider and every angle of the TFSA vs RRSP debate has been extensively written about. While you do need to understand the basics of how they work, the simple goal for the vast majority of us should be to put something, anything, into one (or both) of these accounts on a regular basis and start investing — you can’t go wrong!

Published by DLC Marketing team.

It can get pretty exciting to see campaigns around “cash-back mortgages” but, before you get too far along, here are three things you might not know about these types of mortgages:

1. Occasionally you will see campaigns on cash-back mortgages, so don’t jump at the first one you see! These types of mortgages are available through a few major lenders so it can be helpful to shop around to see what different terms and conditions are available, as this will affect the overall loan.
2. When it comes to cash-back mortgages, you’re really getting a loan on top of your mortgage. The interest rates are calculated to ensure that, by the end of your term, you will have paid the lender back the money they gave you (and perhaps a bit extra!). Be mindful that these loans can come with higher interest rates and, in some cases, the extra is more than you got in cash-back.
3. The average cash-back mortgage operates on a 5-year term. While you may not be planning to move before your term is up, sometimes things happen and it is important to be aware that if you break a cash-back mortgage, you have to pay the standard penalty but you will also have to pay back a portion of the loan you were given. For example, if you are 3 years into a 5-year term, you would have to pay back 2 years or 40% worth of the cash-back. Combined with the standard mortgage penalties for breaking your term, this can add up if you’re not careful!

Before signing for a cash-back mortgage it’s better to discuss your needs with your local Dominion Lending Centres mortgage expert. They can advise regarding all cash-back mortgage availability, lines of credit, purchase plus improvement loans or also flex down mortgages that may be better for your situation.