Just like a sound Financial Plan, a solid Mortgage Plan is key to managing your net worth and accelerating financial growth on the way to retirement.
In fact, a mortgage plan should be wrapped into your financial plan and should be regularly reviewed, just like your investment plan.
There is a tendency in Canada to consider your home as separate from the rest of your financial life. That's a sound way of thinking of course, but there is an opportunity to use financing to gift down payment funds to kids, top up TFSAs ( for example ) or a hundred other important things, all while preserving your investments and minimising tax exposure. If you must borrow, then borrowing mortgage funds is likely the least costly way of doing it.
You can mortgage plan the renewal of your existing mortgage as well. In today's rate environment, where renewal rates can be 2.5% higher than the existing rate, some simple steps can reduce the monthly payment obligation by hundreds of dollars, preserving cash flow.
For Planners and Wealth Advisors, the right mortgage plan can actually assist in increasing investable assets or maintain a clients asset base longer. It can allow for some early estate planning while minimising tax implications at a low cost.
If you are concerned about managing your mortgage financing or are a wealth advisor wanting to explore integrating mortgage planning, please don't hesitate to reach out.
I can be reached at 778-230-2572
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