Home Loans Canada, a mortgage brokerage unit of CIBC Mortgage Inc., is offering a mortgage that helps consumers put more savings towards their RRSPs.

The RRSP Mortgage Solution is available on all approved CIBC mortgages during the current RRSP season, ending March 1, 2001, with a closing date up to July 31, 2002.

Customers who take out a five, seven or 10-year term mortgage are eligible to receive an instant cash back, provided they put down the minimum five per cent down payment of unborrowed funds.

The amount of the cash back depends on the length of term and amount of the mortgage. Once the down payment is approved and confirmed, HLC will give the customer their cash back offer. The customer can then use this money to make a contribution to their RRSP before the tax deadline of March 1, 2002.

Customers taking out a five-year mortgage receive a 3% cash back; a seven-year mortgage receives 4%; and a 10-year term mortgage gets 5%.

On the day of funding — when the downpayment is officially due — HLC will reimburse the customer’s downpayment with the money that was used as the cash back benefit, and send it to the solicitor.

“This is a great opportunity for customers to use their new home as a means of saving towards their retirement,” said Andy Charles, president of Home Loans Canada. “Many people find it difficult to set aside funds for their RRSPs because of financial constraints, especially when they are purchasing a new home.”