New Year Resolution: Clear my holiday debt!

In Canada, January is the time of year where the majority of us have accumulated the most personal debt. Credit card statements are chock full of holiday expenses on top of whatever debt that may have been there prior to the holidays.

This new year, make a different kind of resolution, resolve to break free of this debt cycle and start building your wealth. With a little planning, you can add new life to your finances and start saving money. Once you’ve got the right plan in place you’ll start seeing all kinds of benefits: streamlined payments, more cash flow, lower interest and faster debt pay down.

Come in today and we can show you how to use your equity to consolidate your high interest debts. Now that current mortgage rates are at historic lows, it’s possible for you to save significantly by rolling all your high interest debts into one low interest rate mortgage.

Take a look at the following example:

A customer comes in with a mortgage, car loan and credit card debt totaling $225,000. We roll that debt into a new $233,000 mortgage for them, including a fee to break the existing mortgage. Here’s the payoff:


                                                                        Current                            NEW

                                            Today        Monthly Payments*     Monthly Payment*

Mortgage                          $175,000                $874                                $1,054

Car loan                            $  25,000                $495                                $       0

All credit cards                  $  25,000                $655                                $       0

Total                                                             $2,024                                 $1,054


That customer’s monthly payments have now been reduced by $970! That money is now free to be put to better use elsewhere – adding $500 to your mortgage payment for example, would reduce your amortization from 25 years to 15.

Stick with your new year resolution this year and come see us about kick starting your finances today!



*3.5% current mortgage, 2.59% 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.