Q - When a builder offers a cash back of $25,000 on the purchase of a condo, is that really a good opportunity for me as a buyer? It is promoted as "living free" for a year.
A - Let's say the condo costs $350,000 and you get $25,000 cash back, you are paying mortgage interest on the full $350,000 minus your downpayment. That is not 'living free'. It may sound enticing but there is a financial cost to this cash back. A price reduction in the amount of the cash back would be much better.
In order to assess your situation in greater detail, go to your bank or mortgage broker with the pertinent information and they will be able to provide you with the specific calculations regarding interest rates, payments, your affordability and the actual cost to you regarding such a cash back.
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