As you know the Real Estate Market during COVID-19 has been a very hot market and homes are selling for above listed price. The good news is, if you own a home you probably have a lot of equity now and you can therefore benefit from this.
Have you thought of taking advantage of the equity in your home by refinancing to:
- Renovate your home
- Invest for yours and your children’s future
- Pay off higher interest debt
- Buy a second home or an investment property
Did You Know That The Mortgage Rules Are Changing Yet Again, On June 1st, 2021?
On June 1st, the new mortgage rules will affect the amount of mortgage that you will be able to qualify for. This is due to the increase in the qualifying interest rate of the Stress Test. Presently the qualifying interest rate is 4.79% and as of June 1st this will increase to 5.25%.
What this means, is that even if you get a mortgage interest rate of 2.2%, you have to prove to the lender that you can afford to pay for a mortgage based on the Stress Test interest rate.
A mortgage Stress Test is a way of determining exactly how much you can afford and if your income was reduced, you lost your job or interest rates go up in the future, you could you still afford to make your mortgage payments.
When the mortgage interest rates were higher, it made sense for some of us to pay down our mortgage as much as we could. However, now that the mortgage interest rates are at an all time low, this might not be the best strategy for many people, as there are other great options available, while still taking advantage of these low interest rates.
At the Blackmore Levy Group we have been fortunate enough to help many families who have been worried about their finances. Financial challenges put so much stress on families and we are here to help you during this time of such great uncertainty. Government programs are able to help some families but sometimes that just isn’t enough.
Financial Relief Plan for Couple in their 50’s
This lovely blended family we helped recently are in their early fifties. David is a Dentist and Samantha is an Office Manager. Since the COVID-19 lockdown, they have both been fortunate enough to continue working. They have 2 children in university, and 1 in high school, who are now all studying at home full time.
Like many families, before COVID-19 they were just getting by financially and now they seem to be spending more money than ever before. This was a great worry to them and they were looking for some financial and emotional relief. Luckily, they were referred to us by their Accountant.
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 and custom design a personalized blueprint of their new Financial House.
We helped this lovely family and were able to save them over $2,470/month by custom designing their Financial House the right way.
Home Value of $1,350,000 – Oakville Property
This was their financial situation:
| Debts | Balance | Monthly Payment | Interest |
| Current Mortgage | $420,000 | $2,520.00 | 3.89% |
| All Other Debts | $223,500 | $3,350.00 | * |
| Total Monthly Payments | $5,870.00 |
*Debts: Car Loans, Credit Cards, Lines Of Credit with varying interest rates up to 24.9%
New Financial Blueprint
This lovely family really needed financial help to reduce their high interest debt and to stop relying on their lines of credit and credit cards for extra cash. With the increased equity in their home, they had plenty of room to renovate, invest for their future and pay off all their debts.
Borrowing money at a very low interest rate to pay off high interest debt is a very smart plan. Borrowing money at a very low interest rate to invest in their future is also a very smart plan as they will be receiving a higher rate of return. This would also relieve their stress level during this difficult time.
Blackmore Levy Group is a full-service Financial Brokerage specializing in Insurance, Investments, Mortgages, all Debt Strategies and Estate Planning.
We arranged a new first Mortgage and paid off all their outstanding debt. Now they have one lower monthly payment, which gave them a huge financial relief. They no longer have to use their lines of credit or credit cards.
NEW Monthly Payment of $3,400.00 = a monthly savings of $2,470.00
Their New Blueprint 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:
- Life Insurance – So their family is now fully protected
- Will and POA’s – They didn’t have them in place, now they do
- Set up an Emergency Fund – So they don’t have to rely on their credit cards and Lines of Credit
- They made deposits to their Saving & Retirement Plans and will be receiving a tax refund. We set up monthly contributions to take advantage of Dollar Cost Averaging
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. This customized plan was a huge financial relief for them.
Are you and your family struggling with financial challenges?
At Blackmore Levy Group, together, we custom design and build or re-build your Financial House the right way. We would love to help you. If you would like to have a FREE, private and non-judgemental conversation, please contact us or call us at 1.888.520.6520. Let us help you smile again.
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