Can You Use a Credit Card to Pay Your Mortgage and Collect Rewards?
It sounds like a dream scenario: pay your mortgage with a credit card and rack up rewards points, miles, or cash back. Who wouldn’t want a free flight or extra points while paying off their biggest monthly expense? Unfortunately, in Canada, this isn’t something most lenders allow and there are important reasons why.
As your friendly BC mortgage professional, I want to explain exactly why this strategy won’t work the way many people hope.
How Mortgage Payments Work in Canada
Canadian lenders typically require mortgage payments to come from a chequing or savings account via:
Pre-authorized debit (PAD)
Void cheque from your account
Most lenders even have it in their terms and conditions that credit cards cannot be used to make mortgage payments.
Why Credit Cards Don’t Work
Even if your credit card company offers cheques, any payment made this way would be treated as a cash advance. That’s a critical point because:
Cash advances start accruing interest immediately — there is no interest-free period like a regular credit card purchase.
Interest rates on cash advances are much higher than your mortgage rate, so the cost far outweighs any potential rewards.
A Practical Consideration
Think about this: how many times have you lost your credit card or seen unusual activity on your account? Now imagine cancelling that card and then having to reset all your pre-authorized debits linked to it. The last thing you want is for the payment that keeps the roof over your head — your mortgage — to bounce.
This is another reason why mortgage lenders insist on PAD from a chequing or savings account — it’s reliable, consistent, and ensures your payment is always on time.
The Bottom Line
If paying a mortgage with a credit card was allowed by most lenders, you better believe everyone would be doing it. After all, most of us have mortgages, so why not try to earn a free flight while paying it off?
Unfortunately, the reality is that mortgage lenders have rules to prevent this.
Smart Ways to Earn Rewards While Paying Your Mortgage
While you may not be able to pay your mortgage directly with a credit card, there are still ways to maximize rewards safely:
Use a rewards credit card for everyday expenses like groceries, gas, and bills you can pay with a card.
Pay off your credit card in full every month to avoid interest charges.
Stack rewards programs where possible — loyalty points, cashback, or travel programs can still add up!
Paying your mortgage won’t earn you a free flight directly, but by being strategic with your everyday spending and maintaining a solid financial plan, you can still enjoy rewards without risking fees, high-interest debt, or missed payments.