nbdebt & Cashflow Solutions

Transcription

1 nbdebt & Cashflow Solutions Manage your Debt and Cashflow More Efficiently

2 nbnavigator Solutions

3 Financial Planning Pyramid

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5 Not All Debt Created Equal Good Debt - Use of Debt to acquire assets and build wealth (Commonly referred to as Leverage ). Bad Debt - Debt accumulated to simply to keep up with a desired lifestyle. If left unchecked, this bad debt is simply living beyond our means and will erode our future growth of household wealth. For many, your house might be your most significant asset which also makes your mortgage your most significant form of debt. Understand your options for financing your home and how to make your most efficient choice.

6 Mortgage Mortgage = Traditional Form of Home Financing through most banks, mortgage brokers, and credit unions. Payments = Fixed regular payments (typically monthly) of both principal and interest paid over as many as 25 years. Pre-payments are usually restricted Access = Delivered as a Lump Sum Interest = Fixed or variable interest rates set for each term (usually a period of five years per term) Keep in mind that normal mortgage rates historically are closer to 7-8% or more. You may pay more in interest than the face value of the loan over the entire life of the mortgage Being halfway through your repayment schedule does not mean that your mortgage will be have paid off.

7 HELOC HELOC = HELOC is a Home Equity Line of Credit available through most banks, credit unions, and even some mortgage brokers. Typically limited to 65% of your home's appraised value If being combined with a regular mortgage, the combined loan value cannot exceed 80% of the appraised value of your home. Payments = interest only payments required (This makes a lower required payment but if interest is only paid, the principal value will never decrease and you will never pay off the balance of your HELOC) Pre-payments are allowed at any time and principal amounts repaid are available to be drawn on again without having to refinance or be reapproved. Access = Entire amount available once approved but access money as needed and pay interest only on what you use. Interest = Typically variable interest rate within open term Usually provide an option to lock in a portion or all of the balance at regular mortgage rates (and regular mortgage rules on that locked-in portion)

8 Manulife One = Offered by Manulife Bank (a fully chartered banking institution in Canada) which brings your mortgage, savings, and income together into one multipurpose "borrowing and chequing" account. Typically limited to 65% of your home's appraised value If being combined with a regular mortgage, the combined loan value cannot exceed 80% of the appraised value of your home. Payments = Your income could instantly reduce what you have borrowed. Every day that even one dollar of your regular income stays in your account, you have less debt, so you will pay less interest. Access = The idea behind the Manulife one account is simple: having your income and savings work harder to reduce your total debt faster all in one single account. Consolidate your Debts. Put your savings and your income to work for you. Interest = Variable interest rate within open term.

9 Traditional Banking keeps what you have (your earnings, savings, short-term investments, etc.) separate from what you owe (your mortgage, loans, etc.). You earn a lower rate of interest on your deposits while paying a higher rate of interest on what you borrow and this keeps you in debt longer and paying more interest over time. Manulife One Account Manulife One: What if your deposits and your borrowing were combined into a single account so that every dollar you earned automatically went towards paying down your debt? It brings your mortgage, savings and income together so that every dollar you deposit goes towards paying off your debt, every day.

10 nbmortgage Solutions: An in-house mortgage brokerage department affiliated with Canada Mortgage Brokers Inc. (A Proud Member of our National Best Financial Network) Full menu of mortgage options available such as: Residential / Commercial Mortgage options designed for the self-employed Mortgage options for high loan-to-value mortgages (i.e. smaller down payments) Construction and property redevelopment loans Mortgage options for $1 Million Plus Mortgages (Special CHMC rules) You now have the ability to make your mortgage a part of your financial solution within the National Best Financial Network.

11 nbcashflow Solutions: A Certified Cashflow Specialist (CCS) who can help you better manage the money that you do have and how it can benefit your life. Do you feel like you are making a great income but you don't know where it all goes? Do you feel like you could do so much more of the money if you only knew how? Do you want more life from the money that you already have? If your financial plan doesn't include a written cash flow plan, you may be missing the most important step. Get more life out of the money that you do have.. You now have the ability to integrate your own cashflow plan with your insurance and investments as a part of your financial solution within our National Best Financial Network.

12 nbdebt Solutions: Confidential One-on-One consultation to discuss and manage your debt in order to get on track to being debt-free sooner. Are you tired of the restrictions that come with bad credit or the stress of not being able to make your minimum monthly payments? Fix your credit today. Get more credit. Get your credit back on track. Debt management options such as the following: Credit Repair / Debt Consultation / Debt Consolidation / Debt Settlement You now have the ability to integrate your debt management plan with your insurance and investments as a part of your financial solution within our National Best Financial Network.

13 Final Note on Debt Always ensure that any amount of debt that you take on is right for your situation. Just because a bank will give it to you, it does not necessarily mean that you should take it. Take your time finding the right product for you and your situation both for today & for tomorrow. Remember that a mortgage is typically a long term commitment so take your time choosing.