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Category Archives for "Pay Off Debt"

Should I Change My Mortgage When Rates are Dropping? – What to Do

Rates are dropping. They're going down fast due to the COVID - 19 outbreak. Right now, prices are changing every single day.

I'm getting a lot of emails and many calls from all my clients, and they're just asking, "Hey Sylvia, can I get a lower rate?" and that's a conversation that we should have. If you are wondering the same thing, it's going to all be dependent upon what your penalty will be.

How much mortgage you have outstanding if you have any debts? So, for example, I did a calculation yesterday for a client, and in the end, it was not worth it based on their penalty and their mortgage amount for them. I said, "No, stay where it is cause it's not worth it for you to break the mortgage."​

If you have any questions about building wealth through real estate connect with me for a free call.

She's Happy To Help

My Personal Story - Investing in Real Estate Almost All of My Life in Toronto

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My Personal Story – Investing in Real Estate Almost All of My Life

In step three of my live debt-free program, I teach Canadian families how to build wealth through real estate. Now let me tell you my personal story.

A long, long time ago, my mom took me to go see this house. I thought she was shopping around for a client of hers, but when we got there, she said, “This is perfect for you, let’s buy it.”

And I was like, “Great, who’s buying it?”

“You are,” she replied.

And I was a little confused because I was just a young professional.

I thought, “I can’t buy this place. I’m not ready to buy?”

I didn’t have my 5% down payment. I just graduated from university, had $50,000 of student loans, and I was still lining up a full-time job.

But God bless my mom for teaching me and pushing me in that direction cause I got the house.

Three years later, I sold the place, I paid off all of my debts and then I bought a detached home in the city of Toronto, and I own it to this day.

Since then, I’ve been hooked on real estate.

My mom taught me how to build wealth through real estate.
I want to teach you!

If you have any questions about building wealth through real estate, give me a call.

FREE YOURSELF FROM DEBT & EXPERIENCE FINANCIAL PEACE!

Want to Retire Debt Free?

In the Live Debt free program, I will teach you how to pay off your debts including your mortgage!

  • Get the best option for your family with Sylvia Ho’s mortgage expertise.
  • Accountability to keep you on track for your wealth building goals.
  • FREE VIDEO TRAINING - The 12 Concepts to Live Debt Free

Click the Button Below to Sign Up for FREE Today!

CHANGE YOUR CAR AND HOUSE INSURANCE ANNUALLY!

New insurance companies are eager to get your business. It’s work to call around, but do it! Put the annual savings towards your mortgage.

I changed my insurance company last year and saved about $2k for my home, car and other rentals. Anything you can save can go directly to your mortgage that year.  

Action plan:

  1. Call your current insurance company and ask them if you can lower the pricing somehow.  
  2. Call around to other companies or insurance brokers. I have some recommendations. 
  3. Make sure you compare apples to apples with the same deductibilities, coverage, etc.  
  4. Put those annual savings to the mortgage right away! 

Disclaimer: I am not versed in insurance, but this worked for me and saved me money. So, make informed decisions and ask the professionals and experts in that field.

Chat with Sylvia

She's Happy to Help

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Creating a Budget to Pay Off Your Mortgage Fast

Create a budget and spend less on Starbucks so you can pay off your mortgage faster. Put that $340 per month directly to your mortgage, so you pay less interest.

We all know we can be better at spending less money.

Let’s do some math…

Coffee costs around $5/day X 20 work days = $100. 

Lunches cost $12/day X 20 work days = $240. 

Put that $340 directly towards your mortgage instead.  

Cut out non-essentials, such as cable, or home landline or magazine subscriptions. 

Action items:

  • How many more years before your retirement?  
  • Take out your mortgage statement and see if you will be mortgage-free before you retire. Look for the work amortization.  
  • Take out last month’s credit card bills or interact statement and add up your non-essential spending. If you never look at your spending, you won’t change your habits.
  • Make a plan to cut down spending.  
  • Visualize your plan to pay off your mortgage.  

Call me today for a personalized plan! 
Let’s live a life free of debt, including your mortgage!

FREE YOURSELF FROM DEBT & EXPERIENCE FINANCIAL PEACE!

Want to Retire Debt Free?

In the Live Debt free program, I will teach you how to pay off your debts including your mortgage!

  • Get the best option for your family with Sylvia Ho’s mortgage expertise.
  • Accountability to keep you on track for your wealth building goals.
  • FREE VIDEO TRAINING - The 12 Concepts to Live Debt Free

Click the Button Below to Sign Up for FREE Today!

Earn Extra Income to Pay Off Your Mortgage

Having a plan to pay off your mortgage is essential. If you fail to plan, you will plan to fail. I had a client who increased her payment by $20, and this made a $6k difference at the end.  

Be creative!  

I am a huge Marie Kondo fan. She promotes that art of surrounding your self with items that make you feel happy. I purged my home and sold my items. The things that didn’t sell went straight to Good Will, local shelters or Salvation Army. I also got the kids involved, and they loved it! 

I have a friend who is a police officer, and he picks up extra shifts on his days off. I had another client who worked after the kids were in bed bartending at a local pub. I just saw a family sell tomato plants and echinacea plants with the kids. Rent out your basement or garage or mow your neighbour’s lawn. Other ideas are renting out your basement or garage or parking spot if you aren’t using it during the daytime.   

Action Items:

  1. Have a goal in mind for the year. Do you want to earn $1200? Or $600? If it’s $600, that’s $50 a month.  
  2. Be Creative!
  3. Post on Facebook to offer your services. Make sure you offer a service or item that brings you joy and not just another side job. If it’s just another side job, you will quickly lose your motivation.  
  4. Track the money earned and put that extra income directly to your mortgage.
  5. Visualize your Live Debt Free Plan

Call me today for your personal Live Debt Free Program!

Pay Off Your Mortgage & Create Financial Peace

In the Live Debt free program, I will teach you how to pay off your debts including your mortgage!

  • Get the best option for your family with Sylvia Ho’s mortgage expertise.
  • Accountability to keep you on track for your wealth building goals.
  • FREE 5-MIN VIDEO TRAINING - The 12 Concepts to Live Debt Free

Click the Button Below to Sign Up for FREE Today!

Don’t Pay Property Taxes with Your Mortgage Payments

Many Canadians pay their property taxes with their mortgage payments. I agree that it sounds much easier, but you are leaving money on the table!

Depending on when you start your mortgage, you can be in a deficit or credit position with your lender. If you are in a deficit you will pay interest to your lender till you have caught up. If you are in a surplus, the interest earned is minimal.  

I recommend paying your property taxes directly to the city. By paying directly, you will never pay more than you owe. Many cities have preauthorized debit plans. 

Action plan:

  • Go to your local city’s website and look up the pre authorized property tax payment program.
  • Sign up!
  • In Toronto, you complete a form online, email it in with a VOID cheque.

It’s super easy!

FREE YOURSELF FROM DEBT & EXPERIENCE FINANCIAL PEACE!

Want to Retire Debt Free?

In the Live Debt free program, I will teach you how to pay off your debts including your mortgage!

  • Get the best option for your family with Sylvia Ho’s mortgage expertise.
  • Accountability to keep you on track for your wealth building goals.
  • FREE VIDEO TRAINING - The 12 Concepts to Live Debt Free

Click the Button Below to Sign Up for FREE Today!

Do You Have a Flexible Mortgage Contract?

Most lenders give you opportunities to pay down your mortgage.

Some lenders allow you to do this on EVERY payment date and hence, possibly 52 times a year!

Some lenders will only let you to do this one time per year.

However, if that one day happens to land on a Sunday or a holiday or you are sick or busy, you may have to wait till next year.

Understand your mortgage contract.

Life is busy, and we are juggling so many important things.

Find a lender that makes it easy for you and works with your lifestyle.

Find out the method to pay down your mortgage.

Some ask you to book an appointment and head into the branch.

Some lenders will ask you to snail mail a certified check or line up at the teller.

For me, with two kids and a busy hockey and cheer schedule, I prefer to have everything done online.

Know your options and do your research.

Make sure the process is easy, simple and works for you.

Chat with Sylvia

Click the Button to Book a Call

FREE YOURSELF FROM DEBT & EXPERIENCE FINANCIAL PEACE!

Want to Retire Debt Free?

In the Live Debt free program, I will teach you how to pay off your debts including your mortgage!

  • Get the best option for your family with Sylvia Ho’s mortgage expertise.
  • Accountability to keep you on track for your wealth building goals.
  • FREE VIDEO TRAINING - The 12 Concepts to Live Debt Free

Click the Button Below to Sign Up for FREE Today!

Found new money? Make a Lump-Sum Mortgage Payment.

Ready to get out of debt with a lump-sum mortgage payment? Today we’re going to talk about prepayment privileges.

There are two types of prepayment privileges. The first type is lump-sum payments on any payment date, and the second prepayment is increasing your mortgage payment to be set at a higher amount.

Make a Lump-Sum Payment

Lump-sum mortgage payments are any payment up and above your regular mortgage payment. This extra lump sum payment will go directly towards the principle and pays off your mortgage faster. I had a client use her tax refund to pay down her mortgage each year, and she did $3000 a year and that shaved off a number of years off her mortgage.

The key is to understand the difference between these lump-sum payments among the different lenders. There are three main differences.

The first difference is what is the percentage on the lump sum payment allowed. Some lenders will give you a 5% lump sum per year to 10%, 15%, 20% or 100%. This percentage is based on your original mortgage amount. So say, for example, you had $200,000 mortgage. Your lump sum payment at 5% would be $10,000 a year, or if your lump-sum payment was 20%, you could put down an extra $40k every year. That money will go directly towards the principal and pay off your mortgage faster.

How Often Are You Allowed to Make Lump-Sum Mortgage Payments?

The second difference is how many times will the Lender allow you to make these lump-sum payments. There are some lenders that will enable you to do it one time a year or three times a year and some lenders will allow you to do it up to 52 times a year. I love the lenders that give us the most flexibility.

Things to look out for are one time a year lenders. These lenders are among the big five big banks, and if you miss out on that one day because it landed on a Sunday or you were sick, or you were busy, or it was a holiday then you have to wait an entire year before you can take advantage of your prepayment again.

How Easy is it for You to Make Lump-Sum Mortgage Payments?

The third difference is how comfortable do the lenders make it for you to pre-pay your mortgage. For example, some lenders want you to come into the branch, set up an appointment and give them a certified check. Other lenders want you to get a certified check and mail it into the Lender. Some vendors make it super easy, and you do everything online or via email. Make sure you work with a lender that works with your lifestyle and makes it super easy to pay down your mortgage.

If you have any questions about your prepayment privileges, send me a message.

FREE YOURSELF FROM DEBT & EXPERIENCE FINANCIAL PEACE!

Want to Retire Debt Free?

In the Live Debt free program, I will teach you how to pay off your debts including your mortgage!

  • Get the best option for your family with Sylvia Ho’s mortgage expertise.
  • Accountability to keep you on track for your wealth building goals.
  • FREE VIDEO TRAINING - The 12 Concepts to Live Debt Free

Click the Button Below to Sign Up for FREE Today!

You Can Save Thousands of Dollars By Rounding Off Your Mortgage

Round off your mortgage payment to the next $100 and see the difference it makes!

I had a client increase by $20 and it made a $6000 difference at the end.

Prepayments increase your payment.

There are two types of pre-payment privileges:

  1. Lump sum payment
  2. Increasing your mortgage payment

Most lenders will allow you to increase your mortgage payment.

Any increase up above your minimum payment will go directly towards the principle and pay off your mortgage faster. 

The differences between lenders would be the percentage you are allowed to increase your mortgage payment by.

There are some lenders that will do 5% 10% 50% 20% up to 100%.

Some lenders will not allow you to increase your payments. 

I had a client increase by $20 and it made a $6000 difference at the end.  Any amount that you can contribute to your mortgage will make a difference.  Making this decision to actively pay off your mortgage will bring you closer to financial freedom. 

There’s one key difference to keep in mind when you increase your mortgage payment and that is to make sure the lender will allow you to decrease it back down.  

So, for example, your mortgage payment is $1000 per month.  We increase it by the 15% allowed which is $150.02, so now your payment is $1150.  A few years later you decide that you want to take that $150 and use it towards your RESP for the kids.  To your surprise, you’re not allowed to make that change. Some lenders will not allow you to drop your payments. 

 You want a lender that will give you the most flexibility to allow life to happen. 

What more insights to pay off your mortgage and become totally debt free? Enter your name and email below to join our Live Debt Free Program!

Pay Off Your Mortgage & Create Financial Peace

In the Live Debt free program, I will teach you how to pay off your debts including your mortgage!

Get the best option for your family with Sylvia Ho’s mortgage expertise.

Accountability to keep you on track for your wealth building goals.

FREE 5-MIN VIDEO TRAINING - The 12 Concepts to Live Debt Free

Click the Button Below to Sign Up for FREE Today!

Pay Off Your Debt with Biweekly Accelerated!

Today we will talk about paying off your mortgage earlier by paying biweekly accelerated.  

This does NOT mean biweekly regular.

Many clients who biweekly feel they are paying off their mortgage faster, but in fact, they are not.

Check your mortgage statement for the word ACCELERATED!

Or confirm your original monthly payment and divide it in half.

That’s what you should be paying to be on the accelerated plan.

For example, let’s say you had a mortgage for $300k at 3.5% interest, your monthly payment is $1342.91. Thus your accelerated biweekly payment will be $671.45. By paying biweekly accelerated, you will save $20,330.19 in interest.

Now, let’s do some simple math.  

Let’s say your mortgage payment is $1000 per month.  Hence, in one year, $12k will come out of your account.  

Biweekly regular calculation:  $12k/year divided by 26= $461 every two weeks.  Here you will pay the most interest to your lender.  

Biweekly accelerated calculation:  $1k/mo equates to $500 every two weeks.  $500/biweekly X 26 payments equal to $13k per year.  That extra $1k payment per year will do directly towards principal and pay off your mortgage faster.  

Call your lender today to find out if you are regular biweekly or accelerated biweekly or call me today for a second opinion!

You can reach me at 647-223-6100.