Many people did not anticipate that this pandemic would have such a huge impact on us. Around 760,000 Canadians applied for some sort of Mortgage deferral since the pandemic began. That’s 1 out of 6 people with a Mortgage who opted to defer at least one Mortgage payment. This was a huge financial relief for many families.
Most of those deferral programs were for six months at most, which means those who applied early are due to start making up those payments now or very soon. If that’s you, are YOU ready for tomorrow?
We feel extremely fortunate that many families have been referred to us, as their finances have been affected in many different ways. Luckily, we’ve been able to help them by providing some financial relief, which reduces their stress level at this time of such great uncertainty.
Government programs are able to reach many families but sometimes that just isn’t enough.
One couple we helped recently are in their mid 40’s. They both are working full time and since the COVID-19 lockdown, they have both been working from home. They have three children who were being home schooled and now two of them have just returned back to school. Before COVID-19 they were just getting by financially and didn’t have much money left over at the end of the month. Now with the possible COVID-19 second wave, this family desperately needed some financial help and guidance. Their good friend referred them to us.
At the Blackmore Levy Group, we sit down with families and individuals and gather all their financial information – the good, the bad and the ugly. With this lovely family we were able to save them $3,015/month by custom designing a personalized Blueprint of their Financial House.
Financial Relief Plan for Couple in their 40’s
Our clients are in their mid 40’s. Adam has been a self-employed commissioned sales representative for the last 15 years and Sarah has a salaried position as a graphic designer.
Home Value: $1,200,000 – Oakville Property
This was their financial situation:
| Debts | Balance | Monthly Payment | Interest |
| Current Mortgage | $411,000 | $2,140.00 | 4.79% |
| All Other Debts* | $108,000 | $3,320.00 | *Various |
| Total Monthly Payments | $5,460.00 |
*Debts, Car Loans, Credit Cards, Lines of Credit with varying interest rates up to 24.4%
New Financial Relief Plan
The first thing we noticed is that this lovely family really needed financial help to first, reduce their debt and secondly, to reduce their stress levels during this difficult time. We arranged a new first mortgage with a lender that specializes in self-employed individuals. Mortgages for self-employed individuals have a different set of rules and an independent mortgage broker like the Blackmore Levy Group can help find lenders that best suit any situation. With the new mortgage in place we paid off all their outstanding debt and consolidated it into one lower monthly payment, which finally gave them some breathing room. This is much better than using their retirement assets.
We saw that they had Mortgage Life Insurance attached to their mortgage, so we explained all the reasons why this isn’t a good idea and that they were making the Bank the Beneficiary and not their own family. Having their own Life Insurance policy is a much better plan and they agreed, especially after we showed them this video (In Denial). We share this brilliant CBC Marketplace Video with all our clients, as it explains exactly how Mortgage Life Insurance really works.
NEW Monthly Payment of $2,445.00 = NEW Monthly Savings of $3,015.00
Huge Financial Relief
Their New Plan outlines exactly what to do with their freed up money, which puts them in a better financial position for their future. This is what we implemented which was a huge financial relief:
- Life Insurance – Now their family is fully protected
- Will and POA’s – They were no longer valid so they had a lawyer update them
- Set up an Emergency Fund – that they didn’t have
- Set up monthly contributions to Saving & Retirement Plans (Dollar Cost Averaging)
- Set up monthly contributions to their Children’s RESP’s
- Accelerated the New Mortgage, to pay it off 9 years sooner, saving them over $76,000.00 in interest!
At the end of the month they still had money left over so they could enjoy family time and no longer be stressed about not having enough money. It was a huge financial relief.
Are You Financially Ready For A Second Wave?
Unfortunately, money challenges cause a lot of hardship in families and we at the Blackmore Levy Group are here to help you. We custom design and build or re-build your Financial House the right way. If you would like to have a FREE, private and non-judgemental conversation, please don’t hesitate to contact us or call us at 1.888.520.6520. Let us help you smile again!
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