Mortgages are only part of the bundle. In other words, TD might not make money by giving you a discount mortgage, but it hopes to make it up when you get a credit card, a line of credit or open a registered retirement savings plan or registered educational savings plan. A spokesman for the bank had another idea. That means big savings. But, to paraphrase an old saying, beware of bankers bearing gifts.
Free money is never really free.
While a cash-back mortgage might seem like a really good idea, it can end up costing dearly, because no lender is going to give you cold hard cash and the lowest available rate. Before grabbing the greenbacks, do a little math. Many lenders will shave a point off their advertised rates. The difference between paying 7.5 per cent or 6.5 per cent isn't insignificant. A godsend for one buyer can be a big mistake for another.