In speaking with a mortgage adviser recently, I found out about cash back mortgages. I was wondering if someone here knows about this and could tell me if they are a good idea?
To give you some background, I am looking to buy a house in 1/2 years time and the approximate cost of the house is going to be close to $500,000. I know for sure there is no way I will be able to save 5% or 10% ($25k or $50k) for the down payment (I am a first time home buyer).
I could take a loan from my in-laws, but I would prefer not to and although I am saving in an RRSP and TFSA and others, I will still fall short.
Edit: My math seems incorrect; I should be able to pay for at least 5% down, but I am still curious about the cash-back mortgage and when it makes sense to use one.