Banks: What They Don’t Want You To Know

We have seen this time and again in our office at Robert Floris – Mortgage Architects on the East Hamilton Mountain. Clients have purchased a home and over-extended themselves either because they haven’t budgeted well or they are trying to do too much; paying down the mortgage quickly, racking up credit card bills, paying for vehicle loans and leases. This is what the Banks love. Keep everyone in debt for as long as possible. The higher the interest the Banks make, the better…FOR THEM. Unfortunately, we seen this wreak havoc on relationships.

The Right Way

At our office, we teach you how to beat the Banks. We flip the scenario. The thing you need to put first and foremost is your relationship. Banks don’t understand this. You need to share your hopes and wishes. You have one life. The next priority is to pay yourself first. This may sound like a cliche, or you may not understand it. What it means is that when you receive your paycheque, you put a little bit away before the Banks get their money. How? You can reduce your mortgage payments by amortizing over a longer period of time. Consolidate high interest debt into low interest debt secured against your home. You can budget so that you don’t reaccumulate the high interest debt again. This strategy gives you 2 great advantages: options and preparedness.

The mortgage option should be the last in the list of priorities. Why? You have 25 to 30 years to pay off your home. Every year we preach to our clients to increase your payments by $50 to $100/month per year. The key to saving money is the reduction of years of interest paid to the Banks. Example: If we saved one year from 25 years to 24 years, we would save $12,000 if the payments were $1000/mth.

Any questions, please call Robert Floris’s office, no obligation, easy to talk to, honest answers.

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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