I RESOLVE… to clear these holiday
bills and start building wealth.
Most
Canadians suffer with their highest personal debt load in January, when the
“holiday hit” arrives and your credit card statements let you know just how
much you spent on the festive season. It’s especially hard if you already had a
burgeoning debt load before the holidays.
This year,
make the best New Year’s resolution ever: resolve to clear that debt, and start
building wealth. With the right plan in place, this year could be the beginning
of a strong new financial life. Start now, and every month you could be seeing
the difference: a boost to your monthly cash flow, one easy payment, faster
debt paydown, and potentially thousands of dollars in interest savings.
If
you have enough equity in your home (you can’t refinance a mortgage above an 80 per cent loan to
value), we can show
you how to use that equity to consolidate your high-interest debt into a new or
existing mortgage. In almost every case, you’re better off rolling large amounts
of high-interest debt into a mortgage. Why? Because we are benefiting from
mortgage rates that continue to be among the lowest in decades. Just compare
mortgage rates with what you’re paying on your credit cards and other
debts.
First
we’ll do an assessment of your situation.
Here’s an example – mortgage,
car loan and credit cards total $225,000. Roll that debt into a new $233,000
mortgage, including a fee to break the existing mortgage, and look at the
payoff:
Current NEW
Today Monthly Payments* Monthly Payment*
Mortgage $175,000 $969 $1,163
Car loan $ 25,000 $495 $
0
All credit cards $ 25,000 $655 $
0
Total $2,119 $1,163
That’s
$956 less each month! Now decide how
to use that $956. If you put $500 into your mortgage payment,
you’ll reduce your amortization from 25 years to 15. Or you could invest in
RRSPs or RESPs and reap some tax benefits.
It’s a new year. Make it the start of a new financial
life. We’d love to help you crunch some numbers to see what kind of life you
could be living, something to really celebrate about next New Year’s Eve!
*4.5%
current mortgage, 3.5% new mortgage, 25 year am. Credit cards 19.5% and car
loan 7%, both at 5 year am. OAC. Subject to change. For illustration purposes
only.
Michelle Natareno
Mortgage Agent
519-675-8798
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