Mortgage EBS- cash back question?

Capercaillie

I have got mortgage approval from EBS. Getting evicted from rental house (landlord moving in), so under pressure to move quickly. Went with EBS because relative had dealing with them and said they were efficient, eventhough their mortgage rates are higher

EBS pressuring me to take cash-back, but i dont need it as I have enough savings. They are saying that increased mortgage rate paying for it anyways. If I don't take it am I losing out on the cashback money (€6,500)? Any advice?

hanaimai

If the product comes with a cashback the rate isn't going to change regardless of whether you take the cashback or not. Unless EBS have any lower rate products available, then you might as well take the cashback - otherwise you are just losing out.

If you want a lower rate without a cashback you'll probably have to look to a different lender.

Q&A

The best mortgage provider for you really depends on your circumstances (a factor of income, loan amount, and price). What weight you apply to cash back versus mortgage rate really depends on how fast you plan to pay off the mortgage. Cash back is a benefit up front but it is associated with higher interest rates and so higher interest rate payments.

People over on ask aboutmoney recommend getting mortgage approval from as many providers as you can and then switching quickly to avail of cashback offers. Again though this depends on your circumstances. The cost of switching might be higher than the cashback.

If you're going with EBS why wouldn't you take the cashback? I'm not aware that they offer a lower non-cashback rate so take the money.

Trish56

Why would you turn down €6500 when its part of the mortgage package and has no affect on the rate you pay. If you don't need it as you say give it to someone that does I'm sure you have plenty of relatives that would appreciate it.

Capercaillie wrote: »

I have got mortgage approval from EBS. Getting evicted from rental house (landlord moving in), so under pressure to move quickly. Went with EBS because relative had dealing with them and said they were efficient, eventhough their mortgage rates are higher

EBS pressuring me to take cash-back, but i dont need it as I have enough savings. They are saying that increased mortgage rate paying for it anyways. If I don't take it am I losing out on the cashback money (€6,500)? Any advice?

Henry Ford III

Trish56 wrote: »

Why would you turn down €6500 when its part of the mortgage package and has no affect on the rate you pay. If you don't need it as you say give it to someone that does I'm sure you have plenty of relatives that would appreciate it.

Because you still have to repay it over a long term?

Smee_Again

Henry Ford III wrote: »

Because you still have to repay it over a long term?

The amount borrowed and the interest rate is the same regardless so the OP should take the money.

@OP - can you split the mortgage into fixed and variable and use the cashback to pay off a portion or all of the variable part?

You'd be foolish not to take the money as it's already factored into the cost of the mortgage.

un5byh7sqpd2x0

Henry Ford III wrote: »

Because you still have to repay it over a long term?

The interest rate, and amount borrowed, is the same whether you take it or not.

Trish56

He is going to have to repay the mortgage anyway whether he takes the cash or not. He could however repay it off the principal and reduce the term of the mortgage and interest.

Henry Ford III wrote: »

Because you still have to repay it over a long term?