A lender is offering a 7% cashback up to a maximum of $50,000 on a 7 year term mortgage at an annual interest rate of 7.4%. How would you be able to compare this 7% cashback mortgage with a competitive mortgage from another Bank?

Let us use the maximum mortgage possible as an example; that is $50,000/.07 = $714,285.71

The monthly payment would be $5,180.60 for a 25 year amortization period. Use the $50,000 cashback to immediately reduce the mortgage to $664,285.71 and keep the payment the same. After 7 year term (84 months) the balance owing the bank would be $539,188.50