Bill is retiring in 4 years and has 23 years left on his mortgage.

Bill like many Canadians had refinanced his house in the past to pay off high interest debt. Time and time again he tried not to purchase on credit but it was just too easy.  He told us he couldn’t’ deny himself some expensive toys that kept ‘presenting’ themselves to him time and time again, and he jokingly called himself a ‘debt junkie’.

Only this time with retirement approaching, he has had enough and he decided to change his ways once and for all. Bill had a $249K mortgage, $27K at 6.0% on line of credit and $17K on a credit card at 19.9%. Bill had two years left in his current mortgage term and the penalty will be $4,650. Is it worthwhile for Bill to pay the penalty and refinance? In a word, YES, but only if he takes a borrowing holiday and stops buying on credit we told him.

We got him a new 4 year mortgage at 3.08% to pay everything off, but here’s the thing, since he could already afford his previous payments, we recommended that he not accept the lower mortgage payment, but rather make mortgage payments at the same level he had been paying before including LOC and credit card payment. The result is a balance at maturity of $214,552 versus $254,995 with 8 years 10 months remaining instead of 18 years.

Bill loved our recommendation and we agreed to redo his mortgage again (this is very important) BEFORE he retires when his income is higher, with the objective of restructuring it then and paying it off in less than 5 years into retirement, something he would never have been able to do the way he was going.

Essentially we have taken him from over $290,000 debt today to $214,000 in 4 short years, with a new ability to pay it off much faster saving him tens of thousands of dollars in interest AND and helping him achieve financial security much sooner.

If you are like Bill, call us today so we can help you get where you need to be much faster. And remember, we look out for your best interests, always.