There are only a few banks which still allow the Cash-Back mortgages. These funds can no longer be used towards the down payment of a new purchase like they used to be able prior to housing crisis But, more so used to cover closing costs, payoff other obligations or liabilities, add a deck or fence to your new home, etc.. The cashback mortgage itself is typically not a true “incentive” as the lenders will charge you a slightly higher rate when opting for the cashback to recoup their costs.