Welcome to my site!

This site has something for everyone.   On the right side I have categories and recent posts which may relate to your specific needs.  This site is new and something will always being added; so come back often.  If you have a question please send it in and I will email you back and possibly post the answer.  There is so much to write about and share and its difficult to tell everything all at once, so I place it here for you!

If you found this site from the web, enjoy!  If your looking for a broker read many of the articles and if what I bring to the table interests you or if the broker or institution fails to educate you of what I offer you during the application process/orientation, this should be an indication that they are not looking out for your best interests; just a transaction.

The industry (Banks, Trust,  Credit Unions, Mortgage Brokers)  typically don’t go out of their way to inform you of strategies mainly because they’re focused on time management/profitability.  Strategies require time to explain and often a commitment to oversee the process and don’t create  additional revenue, which is why they are not offered.

That is ok, if a basic mortgage is all that you want, but maybe there was a program that you could have taken advantage of.  Don’t you not think that it’s better to be given the opportunity to decline, as opposed to not been informed at all?  I’ve always provided programs and can remember some r/e agents getting mad at me for making a things more complicated (to them), but they failed to notice the $8000 tax rebate benefit and purchase plus improvement program  that I implemented, 1st of all it made the deal come together that other wise wouldn’t have and  2ndly it put our client into a nicer home than they  otherwise could not have afforded. ( The client referrals later were great too!).  I find there are agents that back away from these programs because they seem hairy, if managed poorly, and by human nature we are focused on an easy buck?

My strategies and industry secrets are a composition of my many years of experience, education and market knowledge and if any of these strategies appear to be of value, my service standards are second to none.  If you are needing assistance with contractors or professionals I will get  involved for you on your behalf to ensure the task is taken care of.

I believe that If I take care of your needs and exceed your expectations then I am sure you will tell your friends that Dan Dan The Mortgage Man put you on the wisest enhanced financial plan.

My rate is always the best from over 40 institutions.   Alternatively, if you were dealing with your bank they will not automatically lower your rate; if there was a minor 10 bps change. They will match what you find, and never be the 1st to lower your rate to protect their annual bonus, and worse, not advise unless you bring it up.  I realize that it’s not in good taste to talk about my competitions short comings but if you read it here you will be wise to when it does or doesn’t  happen.  I am sure my view is not always true for there are excellent mortgage professionals out there, its just that the industry popped the door wide open with little to no qualifications and the majority are order takers.

**Warning: All programs I discuss could possibly be done else where if you so chose to risk it.  Each program has strict rules and guidlines.  If you want to use a mortgage representative/professional, one who claims they “have an idea”, you are assuming the risk and may not experience the same level of success.  In some cases a financial loss can occur. The choice is all yours, I don’t charge for my added value programs when I am getting compensated by the lender for the mortgage.

Blend and Extend? Baring it all.. Renewing with who?

If by habit, you always renegotiate your mortgage with your bank,  read this.  You’ve just bought a home or maybe you’re refinancing before maturity and want to see the bank to renegotiate your mortgage because you have 27 months to go and you want to avoid the penalty.  It seems the only logical thing to do is to visit your branch or face a penalty.  (True or False)

From my  5 years banking experience employed, with National Trust-Scotiabank, one thing I learned from the bank is that the “perception of fairness” is a very grey area.  I personally have calculated blended mortgage rates and can tell you that the Banker has the option to increase a few values (profit), X & or Y, which adds to the final percentage and improve their profitability which later you will gleefully accept with a signature or face a penalty.

YOU’RE requesting to add an extra 100k to your 250k mortgage at 3.49%.   The Bank has a tool they call “blend and extend”.  It’s a calculation, where to avoid a penalty, numbers are punched in and out pops a  new term and rate.  Then you then say in a gullible voice ” Oh 3.65% isn’t so bad..”  more than you were expecting, but you reluctantly agree.

We brokers are baffled, year after year, people continue to get taken advantage of.   You are re-affirmed that you are saving on your penalty, really? How so?   How did they come to this 3.65%.  Can they manually calculate it for you? You feel that you don’t have any ability to negotiate because you are indebted for 27 more months and you don’t have any idea as to how it’s calculated.  They know this.  Remember grade nine math. Solving  “X”.   Figuring it out is the same thing.  You know what you have, left side, you know what you need to find out on top. You can isolate and solve for the unknowns.

You know the mortgage terms you have, you might know the rate offered for the new money requested; later referred to as “X”.  But you aren’t sure if they added any extra juice, “Y”, to it ( juice- added rate).  This all depends on how savvy you are when negotiating.  If your razor sharp maybe your ok.  If your agreeable and non-confrontational you  are “profit”.

The best loyal clients don’t ask about “X & Y ” (X is the cost on the new money for full term, and Y is the interest rate charged for  extending the existing mortgage to the end of the new full term.   You can be sure that “Y” has been juiced if a penalty has been waived or any favor has been given.

If this is hard to visualize  compare the blend and extend process, that is intangible, to something tangible like mixing paint.  What you do know is how much you owe (OLD), size of paint can, the color represents the rate and the emptiness in the can  is the term remaining,  you also know how much you need( X) and possibly what rate they’ll offer on it.  What you won’t know is what rate is used to take the old mortgage amount to the new full term (Y).  At last we add it all together to give us a (NEW BLEND).

The Bank will take for granted your lack of  understanding of the formula, and your pleasant “bobble head” demeanor to sign what you’re given.   Institutions make more off of mortgages at renewals of a mortgage because negotiating is between you and them and the majority of customer’s agree to sign anything.

The above formula is a more accurate formula as to how a mortgage blend is calculated.  If you followed along in the example you can identify how all the parts go together and see how much juice was added to your blend by working it backwards.  If you need help figuring it out  send me an email or give me a call.

I hope this article gave you some insight as to how a blended mortgage works.  I know for certain that when I do a blend for customer’s the “X & Y” interest rate is the same rate which I quote you from our best discounted rates.

Rent to Own? good, bad, or ugly? you decide.

A “Rent to Own” strategy (R2O) is potentially a good way to acquire a home if accumulating a down payment has been a challenge for you. With the low, here to stay, interest rates, housing prices have gone way up with no underlying reason for a long anticipated correction ; if rates are going to stay low.

Unfortunately now, entry level young family  homes are requiring steeper down payments than compared to a decade ago practically doubling making home ownership harder to reach for first time homebuyers.  Historically, Rent to Own candidates were people with credit issues and not able to qualify.  Today’s applicants may just not have the full down payment but don’t want to stay out of the game any longer either.

One solution is a R2O agreement.  Extra money each month is paid in towards a kitty (future down payment).  Over time, funds accumulate creating enough savings to eventually transition to partial ownership. This strategy is worthwhile if all of the expectations outlined in the agreement  between you and your vendor/landlord are achievable.

The Rent to Own Agreement                                                                                To protect both parties,  renter and vendor, there needs to be a written agreement outlining what time frame the tenant  needs to prepare themselves  for home ownership to save, fix and repair credit, attain financing or attend to other personal matters.  Secondly if financing can’t be attained in due time, then what conditions were negotiated (in advance) or is there an exit strategy?

It would be ideal to have an agreement that allows time to be extended without having to later negotiate.  But as the market changes this becomes a harder concept to tie together.  Every year as the economy and real estate market change the housing prices changes aswell.  The longer the contract, at maturity, there is a larger degree of change in market value.  Now if the Renter can’t fullfill his promise the vendor can cancel his agreement too.

What happens to the Kitty’s savings of over the last few years if this deal does not come together; who’s entitled to it?  If you don’t condition it to be returned then the vendor thinks it’s theirs since they held the price for such a long period of time; and its probably in their posession.   You should negotiate who keeps the Kitty, at what point, or under what circumstances.  In the beginning,  this probably wasn’t discussed because you may’ve felt obligated  not to discuss any negative  twists and it was going against the purchase of your new home anyways; assuming it went together. I’d request that it be put into an account for safekeeping, and its balance reported throughout its time.

You Need to understand your risks                                                              What happens if your efforts to repair your credit never gets corrected?  Or a change of employment puts you back on probation also making a disruption in savings.  Maybe a relationship change occurs that is no longer involved making qualifiing impossible.  These what if’ scenarios need to be considered so you don’t lose your accumulated savings and deposit.  What if’s  get overlooked because you don’t have fair representation.

Hiring a lawyer  to review your contract is a good idea, but this also costs money.  Alternatively, the realtor can represent you, and will negotiate a fair mutual deal. However he/she wants to sell and probably will try to talk you away from your concerns if he feels that it will deter the agreement; if you want something ask!   So you have to know what of your needs have to be addressed and if you fail to disclose something in the beginning you later could be at a major disadvantage.

The biggest set back about the R20’s  process is that  you can get a home to live in without a thorough credit check.   False security.  You may not need one done now but you will just before you “PASS GO”!  This is ok if your credit is good but if your credit has minefields, weak employment, or insufficient funds, the realator has no idea and if you don’t say anything this problem will be waiting for you just  below the surface. “DO NOT PASS GO, DO NOT COLLECT $200.00”

I’ve been called to assist many R2Os who’ve attempted financing and who’ve assumed that homeownership is certain at the end of the program, thinking all roadblocks and credit issues are mysteriously resolved; SURPRISE!  Don’t think the 7 year rule is going to save you, or your family responsibility payments were forgotten and before I forget if Revenue Canada’s involved you can run but and they will find you. You have the best insight as to your credit situation and responsibilities and only you can fix it if you get the needed assistance.

How much savings are needed & what resources are there?                   As already mentioned above, mortgage rates are at an all time low and housing prices, inversely correlated,  are at an all time high ($350,000/2012  vs. $180,000/2000) for a detached home; relatively speaking.  It is unlikely that you may save the 5% plus closing costs ($30,000) in the term of your rent to own agreement. You may need to set aside, 2%-3%, already available so that you can close as scheduled.  For example contributing $250 per month for 2 years totals up to $6,000, a far distance of the needed $15,000 on a $300,000 (5%) home plus the needed $10,000 in closing costs. O.A.C.  See  FINSNAP for more complete details as to closing costs.

If you are having a challenge on getting the funds together and your credit is good, it is very possible for us to arrange a CASHBACK mortgage for you.  Which means on closing, you can have anywhere from 1%-5% cash back forwarded to your Lawyers to be used towards the downpayment, closing expenses or what ever you like; OAC.  (Not all banks will allow cash back to be used for a downpayment- relax I got it covered).  Cash back of course has a cost by increasing the rate proportionately to how much of a percentage you choose.

Would a $10,000 income tax rebate interest you? You should investigate in these RRSP Home Buyer Strategies, where you can contribute upto $25,000 into an RRSP, even if you dont have $25,000 and generate a tax rebate. With Cash or 90 day collapsable loan  this program is a great way to get up to $12,500 free. (MUST REVIEW)

And soon to be added – Land Transfer Tax rebate for a 1st time homebuyer. Which rebates your Land Transfer Tax Rebate.

When to determine Purchase Price?                                                                One dilemma you will need to consider in advance is what and when will the purchase price be determined?  If the market value was constant there would be no issue.  But if prices go up/down you would want the price determined as soon/ late as possible.   Conversely, the vendor has the opposite answer and what ever is decided at the end we have a winner/looser.  If you are winning great! If you paid too much you will need more funds to close.  Caveat Emptor!

One thing that I strongly advise you to do is investigate your credit rating before you get into a R2O agreement, know what has to get settled. Fix everything first.  In four months check and see if it is fixed!  Don’t assume anything is ok!  Your  beacon score later will determine your eligibility to own a home; nothing else!

CMHC- Is at 90% Capacity of its Mortgage Portfolio

In the last few weeks major changes have been occurring after CMHC is cutting back on their appetite for insured mortgages as it edges its 541 billion portfolio closer to the 600 Billion ceiling.

http://business.financialpost.com/2012/01/30/cmhc-backing-fewer-loans/

The Government has requested that the primary lenders begin to decrease offerings to Business for Self (BFS) applicants, “Stated Income Individuals” as it’s perceived that these customers do possess higher income risk and should be paying higher premiums to offset the risk to the overall portfolio.

Over the last decade, Canada has gone through a major employment resource transformation where more Canadians today who were once salaried are now commissioned or contract and these earnings have more write offs capabilities reporting less annual earnings.

Already this week we have seen Firstline/CIBC, lead the pack in making alterations to their product offerings for BFS applicants. This does not mean that BFS can’t get mortgages, it does mean that locating a mortgage will require an increased premium, possibly higher interest rate, or locating an alternative financial institution, B Lender, that will offer suitable products. High ratio mortgages will still be available but guaranteed by private insurers such as GE or Canada Guarantee; which are 50% government backed unlike CMHC which is a 100% crown backed corporation.

There are more changes to possibly come in the coming months. I see this as a good thing to offer a slight cooling affect on demand and offset the hot market spurred from low interest rates.

RRSP Home Buyers Plan- Every 1st TIME BUYER must do!!!

Did you know that you can redeem your RRSP’s to build or buy a Home?  You can withdraw up to $25,000 from your RRSP’s.  Revenue Canada wants you to own a home and they will allow you to collapse your RRSP’s.  What… oh you don’t have an RRSP built? ok… (I got a secret) <—-Click Here for a Huge REBATE!

Revenue Canada

If you are have entered into an written agreement (offer to purchase) to buy a home you can withdrawl funds from your RRSP.  You can use this money as you wish.  It can be used towards the downpayment, closing costs, furniture, pay off debt, or  or as you so desire!

If you are a first time homebuyer (omitting full definition), see REVENUE CANADA definition, you can withdrawl the funds and two years later you can begin to start contributing back into it.  From that point forward you have fifteeen years to rebuild what you  took out.  For example if used $15,000, in the first year that you have to repay, the 3rd year, you must repay 1/15 of the amount that you withdrew. Hence, 1/15  x 15,000 = $1,000 per year needs to be put into an RRSP.

If you choose not to rebuild your RRSP then the amount that you did not contribute to your RRSP  for that year, that due portion becomes taxable.  If you want to repay a greater amount, i’d advise you to repay only the required amount  then any extra contribution put towards your present rrsp savings and get a tax deduction for the present year.

If you have any questions here, please give me a call or write me an email. I can assist you with Revenue Canada’s  definition of the “First Time Homebuyer” as well; which gets pretty wordy.

How to create a RRSP Rebate without MONEY…

If you are a “First Time Homebuyer” and if you do not have a downpayment together, and dont have rrsp’s but want a rebate this program although, Hairy, it’s a must do!

What we need to do is get you a 91 day RRSP Loan (interest only).  We borrow the funds then deposit them into a Money Market account.  Notice the account selected is a  ultra low risk account, we are not here for a return- only a piece of paper, because we are technically making a tax-deduction.

On the 91st day, notice I said 91st, not 89th. We Close the RRSP’s and pay off the Loan.  What we have done is generated a income tax rebate.

Dangers:  You better be in contract to have purchased a home.  Don’t do this without guidance.

Why? If you are in a 40% tax rate and you made a $25,000 contribution to your RRSP for 90 days, you have a write off generating you an income tax rebate for the upcoming tax year of ($25,000 *0.4)= $10,000.

If you have or dont have the resources this program is an excellent program to take advantage of.  I welcome you to contact me by phone or email with any questions that you may have.

WHY USE A MORTGAGE AGENT?

Why Use a Mortgage Agent?

Get access to the BEST interest rates that the banks don’t want you to know about; saving you thousands  of  $$$$.  Since Brokers send lenders millions of dollars of mortgages each month, we get the deepest discounts and pass them onto you IMMEDIATELY – whether you are purchasing, refinancing or renewing

I shop the market saving you time – Calling me is like calling 50 different lenders including Banks, Credit Unions and Trust Companies – I have access to all of them and will save you time

I don’t work for any one bank, I work for you!  – You are my boss, not a shareholder.  My answer to you is getting the best deal.

Isn’t it time the Banks compete for your mortgage business?  I’ll provide you with some options so you can compare– what your bank is offering and what I am able to offer, then you decide which you feel most comfortable with.  It never hurts to get a second look  in effort to help save you money! (I’d be happy to negotiate a better deal for you with your own bank)

 Our application process is simple and quick  I’ll take some information and then send it electronically to a lender that I feel are the best fits your situation offering the best available rates; 24 hr turnaround is usual!

  Step By Step: I’ll walk you through the process of getting a mortgage, step by step, especially if you are a first time homebuyer – it can be troubling! (ASK ME ABOUT MY BONUS PROGRAMS)

I’m available on your terms – day, evening and weekends

 I take one credit bureau only but can forward your file to many lenders!   Many people inadvertently disqualify themselves from getting the best rate when they shop for a mortgage. When multiple banks pull a credit bureau, your credit may be affected, sometimes eliminating their chance of getting an approval.

 Large range of products.  Such as self employed, credit challenged, no down payment, cottage properties, line of credit, 2^nd mortgages and more

I appreciate your business. Besides providing you with the best product at the best price I also provide many added value programs designed to assist you financially.   SEE FINSNAP or MORTGAGE TERMINATOR to name a few.

I am a seasoned Licensed Expert with in excess of 10 years experience specializing in mortgages from all lenders; not just one.  I have bank and broker experience providing you with the best industry experience available!

 Rate Protection. If the rates drop before you close you automatically get the lower rate and if rates go up you have the lower rate locked in

BEST OF ALL!!!   My services are free.  99% of the time the bank pays me a finder’s fee.  The only time that I will charge a fee is if  we have a problem which requires more assistance to get it done through unconventional  means.  If this were the case I would be certain to inform you well in advance.  You are never obligated to deal with me and my advice is always FREE!

Follow Up including Annual Mortgage Check-Ups, Variable Rate Updates and the planning of your Mortgage Burning Party!!

No RRSP, No problem! Check This out!

This is a trick that EVERY 1st time home buyer must take advantage of .  You should maximize your  $25,000 RRSP redemption amount if you are a 1st time home buyer.   For a number of reasons.   First of all, using your RRSPs without penalty, use that money you saved already tax free.  Secondly from a cash tax avenue getting access to a rebate and getting the use of tax dollars today which can be repaid over time without a cost is smart money management. You could generate a tax rebate if you have any of the following.

A) Cash    B) $Cash & RRSP   or c) Gift  d) spousal

If you have cash and are about use that solely as your only downpayment you could be foregoing a chance to generate a real hefty tax rebate for the next spring.

If you can place your money into an rrsp, for 90 days, and collapse it on the 91st day, not a day sooner, you will generate a piece of paper telling the government  that you made a $X contribution to a RRSP.   If your in a 40% tax bracket , put $25,000 into a rrsp, that would be a nice $10,000 cheque in the mail; next spring. ($10,000= (“25,000 x 0.4))

If you dont have cash or rrsps or get your gift to borrow early, it is possible to get a  short term 90 day RRSP Loan,  interest only.  You borrow the funds place them into a money market account, lowest risk and liquid, then on the 91st day we close the rrsp`s pay out the loan  and have a piece of paper proving a nice contribution.

Now maybe you owned a home already (previous life)  and your spouse did not.  You could possibly gift her/him an rrsp contribution then she could redeem under their own contribution limit.

What we have done is promised revenue canada that over the next 17 years we will contribute to a rrsp. The first two years nothing, then the third through to the 17th year you must repay 1/15th of the redeamed rrsp amount into your rrsp.

Buying a home is a very expensive transition and the rebate in spring would be a nice bonus to help smooth out some of the extras purchased or expenses incurred.  It may even come in handy paying off an unplanned holiday. I recommend  reviewing revenue Canada’s program on this link.

Revenue Canada (RRSP Home Buyer Program)

FINSNAP makes the math of Buying, Selling or Refinancing eeeasy!!!

If you have ever financed a home and experienced last minute surprises such as realty tax holdback (??) at the lawyers office or want to see it all laid out,  FINSNAP provides intuition and assurance very well.  FINSNAP is an interactive financial snapshot, using excel , that brings together every aspect of your mortgage transaction incorporating all unknown expenses, fees and credit obligations.  It enables you to see how all the pieces of the “before and after” puzzle fit together; WAY IN ADVANCE. What we mean by that is you enter the known details and all the unknown costs, fees and expenses are laid out. (Don’t know how to use excel? That’s okay, we can help you with that.)

When buying real estate, a homeowner is unsure of  all the closing costs like  land transfer tax,  or the CMHC premium.  FINSNAP addresses the mortgage details, expenses and closing costs.   It also shows how your lifestyle is affected considering additional outstanding debt such as credit cards and loans. If you are a move-up buyer this tool comes in real handy if you have a home to sell.   Knowing approximately how much equity is left over after all the expenses gives you the assurance you need to be able to plan.  Knowing  takes the worry out of everything.

When we created FINSNAP we used it to help  families plan and sort out  their transactions.  We found a mortgage application process resulting in a “yes” or “no” just didn’t inform my clients as to “why” or “how to” or “how much” or “when”; as FINSNAP now does.

The best thing about FINSNAP is that a family can balance their cash flow.   FINSNAP’s interactiveness gives the homeowner the ability to modify their data so they can make more insightful decisions. To make their lifestyle more comfortable they can capsulate on wasted financing  and modify their mortgage needs such as decreasing a downpayment to eliminate an expensive car loan.

FINSNAP is very versatile. Once we have a brief consultation on the phone, we will create your situation.   Whether you have a dozen credit cards  or multiple investment properties FINSNAP makes it easy to follow through.  We look forward to helping you in your next financial adventure or master the one you’re in.

Mortgage Freedom 50% Sooner- Tax Deductible Mortgage Plan “The Mortgage Terminator”

Imagine, seeing your mortgage balance drop like a rock, your retirement savings have begun to swell on their own. Your monthly payment remains unchanged and this is all happening because your house is generating income and claiming income tax rebates for you which all began because of this mortgage strategy you adopted 2 years ago…   Your “mortgage sentence” (amortization)  is shrinking sooner, way sooner, in fact almost 50% sooner.

Traditionally, when we pay off our mortgage, we leave the principle deposit/equity there, accustomed to a slow enormous indebted fate.  Alternatively, there is the Terminator mortgage strategy, a.k.a. Smith Manoeuver, which is a well known and adopted financial mortgage-investment strategy which converts your mortgage to becoming tax-deductible.  This strategy, if administered properly, without leveraging investestments is in my opinion very safe.  You should use a Financial Planner (FP) who understands your financial position and products that are well suited for this program.  Many investment houses discourage borrowing from the home, the Smith Manoeuver, because  in the past many FP’s have taken equity and then gone forward to get 2:1 investment loans; over extending the risk prior to a downside turn in the market.

Leveraging is RISKY because?   If you’re not financially strong enough  2:1 Investment Loans can cripple you if a market correction happens. The bank will call the “investment loan” for you to add funds to your shrunken investment base which you may not have.  Now if you’re not strong enough… you’re in trouble; and so is the investment house.

If you don’t investment leverage then… there will be no calls because your home is backing your investments not the investments backing the investments, and if the market declines its okay, you can sleep!  As long as you don’t leverage your home equity, you will be safe.

Most large investment dealers implement a blanket “no leveraging” rule; very unfortunate.  I find this extreme position keeps them and fragile families safe, but at some point when you become more financially stable this harness limits your ability for financial growth by preventing your mortgage from becoming tax-deductible and terminated 50% sooner.  Their uncompromising position is indirectly telling you that you don’t deserve to save 40% on your interest charges.  Most independent investment dealers don’t have this restriction and have the freedom to assist you. Does it not make sense to pay off your mortgage with $300,000 or $600,000.  Why prolong something if it’s unnecessary to do so?

Below is a diagram that outlines the cycles and how the mortgage terminator works.  I will  reference the Pattern outlined at the bottom of the diagram. Starting at the bottom right side.

If we borrow from the equity  in our home,  (1) (Good Debt) and  invest,  $150,000 (any amount will do), into a  low risk  investment, earning 6%, we earn investment income (2).  It’s common knowledge that borrowing  to invest is tax deductible (Good Debt) and this generates an annual tax rebate; shown monthly (2).  Let’s also account for the monthly principle portion of the mortgage that is paid monthly.  These three amounts sum  $2,250 and are applied against the balance (Bad Debt) in the first month.  We pay off the Bad (non-deductible debt) and reborrow it as Good income producing tax deductible debt (3) and re -invest into the investment fund which is now at $152,250 after the first month.  Our investment revenue continues to slowly increase as well as our tax rebate.  As our mortgage falls, we will also see the principle portion of the payment rapidly increase because the balance is shrinking which decreases the accrued interest (still here?).

This cycle terminates your mortgage up to 50% faster.   TDMP  ( TDMP= Tax Deductible Mortgage Plan)as discussed below provides an automated system to track and manage this strategy for you. Terminator  is a key phrase we use which has many other known names. They all can be referenced back to the Smith Manoeuver for it has been the pioneer into settling many controversial arguments about borrowing against your home to invest and making it tax deductible.

Attached is a comparative analysis of a regular mortgage  vs. Terminator.  To enlarge click the picture.  Terminator is light green, vs. regular, aqua blue.  In the Orange  and yellow sections across the top is where we input your  details.  In the white column we see how much additional wealth could be created.  In this example, we  have a mortgage that is amortized to be paid off over twenty years and in comparison Terminator has it paid off in the 11th year, without increasing the payment.  Understandably this is a forecast and hypothetical.  Many variables in it will change but you can see how the program can work for you. With your copy of the Terminator Xcel Spreadsheet  you can change parameters and see how your future will look.

People often comment that investing your home equity is risky but there is a risk that they already face today by not eliminating the debt sooner and that is income security.  Yes, today you are employed but how about next year?  A generation ago jobs were stable and income stability wasn’t a concern.  Paying off your debt any way you can, while you can, and while you have your health is important.

When I was a kid  one family incomes were common but quickly became two and today two incomes aren’t enough and with the latest energy increases survival and efficiency are of critical importance. Terminator can essentially act as that third income needed to help eliminate the burden of crushing financial debt loads.  If you would like a chart created for your situation we can create one for you and teach you how to modify it at your leisure.

The chart to the left illustrates how the bad debt is eliminated (purple) compared to “no strategy” (blue) over time.  It also addresses the additional wealth created that otherwise would not have (red)been generated.

Over the last few years   TDMP   has created a fully automated system  that manages the onerous responsibility to process, track and manage all the intricate details.

TDMP manages and readvances funds deposited against your mortgage and forwards it to the investment house, synergizing the timeliness of payments and transfering of funds; a critical and grueling responsibility to do on your own.  They also assist with tax preparation of forms for  Revenue Canada for claiming your tax deductions.   TDMP is the power train that gives the Smith Manoeuver the fluidity of movement.  To do this on your own takes a great deal of discipline and commitment.  TDMP has set up additional systems to simplify processes.  Smith’s manoeuver has been around for some time and from my own experience only a few financial planners offered this program in my marketplace because of the huge administration that they would be responsible for.  Today TDMP makes it simple, as it should be!

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National Post: Strategy looks like a revolution: Making your mortgage tax-deductible.