Do you Have the Right Mortgage to suit your Lifecycle
Not all Mortgages are Created Equal, there are different mortgages to suit your personal Financial Needs and Goals. As part of a Real Wealth Management Plan, the type of Mortgage that you have will play a key role in how to best increase your personal net worth, while Managing your everyday expenses.
Is there more than 1 type of Mortgage?
The simple answer is yes, when looking at mortgages you will find that payments, interest, debt reduction, investments, savings accounts, and overall banking, can be adapted to suit your personal financial needs.
As part of our services, we work with clients to develop the best mortgage possible to meet their financial goals. Our Plans use the following types of mortgages or a variation of more than one to find a solution that suits you:
A traditional mortgage is the most common mortgage in the marketplace today. Its main features are:
- Payments go towards Principle and interest
- Locked in for periods of 1-5 Years or more (terms)
- Overall mortgage length up to 25 Years
- Down payment can be as little as 5% (or less)
- Fixed payments for duration of Term
- Usually the Lowest borrowing rates available
- Not Flexible
- Cost to break the mortgage eary (Sale, refinance etc)
An alternative mortgage is when your mortgage is built using multiple loans or mortgage subaccounts. It is usually a Hybrid of:
- Traditional mortgage’s
- Secured Lines of credits
- Loans at lower interest rates,
- Tax deductable portions
- Temporary Savings accounts to reduce mortgage interest
- Flexible payments and repayment periods
- Equity can be accessed without seeking refinancing
- Complies with Income Tax Regulations for tax deductability
The Structure of an alternative mortgage is unique to every situation and should be designed with the help of a Wealth Management Specialist.
Retirement Income Mortgages
When you hear the word retirement income mortgage, the first thing that comes to mind is a reverse mortgage. The difference between a properly structured retirement income mortgage, and a reverse mortgage is the cost and flexibility.
a properly structured retirement income mortgage will:
- Provide you with a source of tax free income
- Will allow you income flexibility at your discression
- provide you with a mortgage rate, versus private lender accumulated rates
- have no setup fees
- have no demand notes
- never see the debt of the mortgage exceed 80% of the home value.
- Can be Stopped at any time
The main difference between a retirement income mortgage, and a reverse mortgage is that you are always on the home, and the home transitions to the estate so that your beneficiaries can decide what to do with the home and equity that remains with it
Multi-Property Revenue Mortgages
If you own rental revenue property, you understand the terms, cash poor, equity rich.
Whether it is a vacation short-term rental, longer-term rentals, or even commercial property for rent that can be mortgaged then you need to know more about our customized Rental Mortgage Strategies. These Mortgages increase:
- Increase Cashflow
- Increase your percentage of Tax Deductible interest
- Provide Flexibility on investments
- Focus on Paying off personal non deductible debt
Overall, a properly Structured multi-property Rental mortgage will reduce your annual tax by a thousand’s every year.
How we work with You
At OBS Financial Services Ltd. We are not Mortgage Brokers. We work with Mortgage Specialists that understands that our goals are to save the clients money, and not the Banks. We work with Both Manulife bank as well as BMO on a referral basis, to find the Best Solution for you and your family.
What Can I expect when we go through this process?
Our first meeting would be to discuss your current mortgage, what you are trying to accomplish, we would do some light fact-finding, and provide a general overview of what we feel would be a mortgage strategy for you and your family.
We would go over what would be our next steps if you decided to proceed with us including:
- what we would need from you
- what we would be able to provide to the financial institutions on your behalf
- we would also discuss, how we are compensated, by our financial, investment and insurance partners, so that there are no surprises
Should you decide to proceed we would create a personal mortgage strategy for you to review and approve, at the same time in order to expedite matters, we would introduce you to the most appropriate mortgage specialist so that they could get the ball rolling well finalize the plan.
Lastly, we will review the final mortgage plan and work with you and the bank in order to ensure that the implementation is done correctly.
What does it cost to have us develop a plan for you?
In Most Cases there are no fees associated with our assistance, providing that you are part of our Wealth Management family of Clients. We receive a small referral fee from our mortgage specialist partners, for assisting with Basic Plans.
We also use this as an opportunity to find you other ways to not only save you money but provide your family with a better layer of protection, when it comes to the Insurance on your Mortgage. Most banks pressure clients into purchasing Creditor Life Insurance (Insert Link to our Blog on creditor vs life insurance). All we ask that that you allow us to explain the benefits of Term insurance vs creditor insurance, as well as provide you with a quote that we guarantee will be less than what creditor insurance will cost.
Please be aware that in the rare case where the complexity of your situation would require additional fees, we would discuss that with you prior to moving forward.
I just want you to provide me with a Plan. What is the cost of Mortgage Consultation?
While Most of our clients trust us with all of their financial needs, there are some who just want us to design a plan for them to take to their Financial Advisor, Tax Person, or Personal banker.
In these situations, we provide this as a fee for service. Once we meet to determine what you are looking for, we will provide you with an estimate on costs, and let you know if they are tax-deductible. While the amount of time we spend with you on building your plan will Vary, you can expect the process to Cost $500 or more.