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(NC)-"Where the heck does it all go?" You're looking at your T4 slip from last year...or maybe your most recent pay stub. Sure, many people wish that those numbers after the dollar sign were a little higher, but it's the vanishing act that alarms you most. Tax time is especially sobering; you can see how much money you made... but your credit card is still maxed out and you don't have much to show for a year's income.
If you're looking for the holes in your wallet, start by making a list of your debts and make a note of the interest rates charged. Are your credit cards teetering at the top of their limits? Do you make regular use of your overdraft protection? Do you have escalating tax liabilities? What about any department store cards? Have you added it up? Many Canadians are startled to see how much they are actually paying to service their debt.
With some mortgage rates still tipping below 5%, you may want to make an appointment with a mortgage professional. By rolling your other debt into a mortgage - either new or existing - you can reduce the number of payments you're making each month, save big on interest charges, and improve your cash flow.
As an example, if you have a $160,000 mortgage at 6%, high interest credit cards and other loans of say $33,000; your total monthly payment could be $2,014.
Now if you took that $193,000 and added on an approximate $3,000 penalty to refinance your mortgage, you may be able to potentially roll that $196,000 into a 4.95% mortgage (OAC, rates subject to change) that could reduce your overall monthly payment to $1,134. That's a monthly savings of $880. Imagine if you funneled some of that cash flow back into your mortgage!
If you have equity in your home, you may want to consider taking advantage of attractive mortgage rates. Regardless of where you are in the life of your mortgage, a mortgage professional like one of the 800 plus Mortgage Intelligence consultants across the country can analyze your situation and outline your options.
Information provided by Mortgage Intelligence. For more information: www.mortgageintelligence.ca or 1-877-308-4892.
- News Canada
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