Why Own One Home; When You Have The Opportunity To Own Two?

Seems like a silly question; however, 95% of all Canadian homeowners could have owned two homes during their original 25- or 30-year amortization period; if they knew how to direct more money towards their outstanding principal, instead of interest.

However; you can erase the past by adopting our 21st Century strategy on your existing mortgage and the existing mortgages of everyone in your warm circle. On average, homeowners can save between $60,000 to $80,000 in unnecessary mortgage interest.

What’s the Missing Component? Our Secret Sauce; it’s a mathematical formula (via our Mortgage Eliminator™ software) which creates a road map or mortgage repayment plan to pay less interest to the lending institution; thus, accelerating their mortgage elimination plan. What’s our Secret Sauce? You have to engage us as your mortgage facilitators, to get your answer… 😊

Let’s face it; homeowners do not make a significant dent to their outstanding mortgage balance until the 14th or 15th year of a traditional 25-year mortgage and based on the mortgage rate; can end up paying (almost) as much interest as they pay towards their principal.

Do You Need Proof? Email me at riyadm@themoneycafe.ca ; provide me with your mortgage details (initial value of your mortgage; current balance, interest rate; term and original amortization period) and I’ll fire off your report; this offer is FREE to the 1st 25 homeowners who respond.

Think of the income potential of a 2nd home; think of a 2nd home as a retirement asset; think of the amount of money you can save by paying off your mortgage in 12.5 to 13 years*; as opposed to 25 years. * Based on your existing mortgage details…

I digress to make a significant point; as a Wealth Management professional; I know, Debt and Taxes are the number 1 and 2 reasons preventing Canadians from adequately saving for their retirement. We can’t do anything about taxes (except thru lobbying/elections); however, we can certainly pay close attention to debt; including the unnecessary and wasted mortgage interest charges we pay over a 25-year mortgage!

Our Mortgage Eliminator™ software will create a revised amortization schedule; illustrating the formula to pay off your mortgage in 12.5 to 13 years. These are the facts we can’t ignore; if we owe the bank $400,000; we have to pay it off; however, that rented money (your mortgage) is not for free; as a matter of fact; mortgages make up 35% - 40% of our bank’s profits…

Did you know, the bank can ONLY charge you interest on your mortgage’s outstanding balance? It’s not rocket science; if your mortgage balance is reduced on a monthly basis, your bank can ONLY charge you interest on that reduced balance; so, the plan is to ensure your mortgage balance get systematically reduced; month after month for 12.5 to 13 years.

Case Study: John and Jane Smith

John and Jane recently purchased their 1st home; their bank graciously gave them a $400,000 mortgage at the low interest rate of 4.84%; their term is 5 years and the mortgage is amortized over the next 25 years and their monthly payment is $2,290.12.

Look at The Numbers: In 5 Years

The Smith’s would have paid $137,407.20; YET; their outstanding mortgage balance in 5 years will be $353,131.67! Are you telling me; although, they paid $137,407.20 (capital + interest); they ONLY reduced their mortgage by $46,868.33? So, where did the balance of my payments ($90,538.87) the past five years went? To the banks bottom line!

Our Solution: Incrementally Increase the Amount of Money You Pay Towards Your Outstanding Mortgage Balance...

In conclusion; as much as there are a myriad of strategies to accelerate your mortgage elimination plan; not too many people can afford to drop 10% annually (in this example $40,000); or pay bi-weekly (paying an extra month (in this example $2,290.12); hence why our solution is stress free, practical and 100% doable!

Instead of paying the bank $90,538.87 in interest; our software allows you to take a portion of the interest and apply it to the outstanding principal and we do this every month; every year until there is a zero-mortgage balance.

Contact Riyad K Mohammed @ riyadm@themoneycafe.ca for more info and or to begin your journey to mortgage freedom.