A cashback mortgage is a type of mortgage that offers a cash rebate to the borrower at closing. In Ontario, cashback mortgages are typically offered by banks and other financial institutions as a way to attract new customers or to reward existing customers for their loyalty.

Cashback mortgages may be offered as a one-time cash rebate at closing, or they may be structured as a percentage of the mortgage amount. The terms and conditions of a cashback mortgage will depend on the lender and the borrower's financial situation, and may include a higher interest rate and fees compared to a traditional mortgage.

Cashback mortgages can be a useful option for borrowers who want to use the cash rebate to cover closing costs or other expenses, but it's important for borrowers to be aware that cashback mortgages may have higher interest rates and fees than traditional mortgages.