DO YOU OWN YOUR HOME – OR DOES YOUR LENDER?

FOR MOST OF US, THE MORTGAGE IS THE LARGEST DEBT WE WILL EVER HAVE!

On average our clients learn to:

Pay off their 30 year loans

in 8-14 years!

Without makingHigher

Monthly payments

No Mortgage Payment?What could you do?

MORT – GAGEPledge Until Death!

mort·gage (mōŕgij) n. [[ OFr – mort, dead

+ gage, pledge]]

1 to pledge (property) by a mortgage

2 to put an advance claim on / to mortgage one’s future/

The Cost of a $200,000 Mortgage @ 6%

(Is It or Isn’t It 6% ?)

Year Total Paid Principal Interest Balance

1

2

10

20

30

14,389

28,778

143,892

287,784

431,677

2,456

5,036

32,628

91,992

200,000

11,933

23,714

111,263

195,791

231,677

197,543

194,936

167,371

108,007

0

Compare the Options

$200,000

TotalRepay

Principal& InterestFortnightl

y

Principal

& Interest

Monthly

YEARS TO BE DEBT FREE

INTEREST PAID

12 YEARS

$97,637

25 YEARS

$184,367

30 YEARS

$231,677

YOU HAVE CHOICES!!REGULAR CHEQUE ACCOUNTDeposit Income

HouseholdCheque Acct

Earns

0%Interest

• Cheques• Service Fees• Money orders• Travelers cheques• Bounced cheques

Mortgages

Living Expenses

Credit Cards, etc.

Miscellaneous

INTEREST ONLY 2 ND MORTGAGE

IncomeLowers

Balance –

Saves $$(interest)

Deposit Income/Make Payment

Mortgages

Living Expenses

Credit Cards, etc.

Miscellaneous

We PayFor

Benefits

• Simple Interest

• Interest Only

• Pre-Approved Limit

• Purchasing Power

John & Jane

What’s In A Home?

Value

1st Mortgage

Payment/Month

Principal/Month

$400,000

$200,000

$1,200

$200

Fixed 1st Mortgage

1st Year Balance

Yearly Principal

Sub Total

$200,000

$2,500

$197,500

Example: Consumer Debt Debts That Could Be Consolidated

Loans (car, etc.) Amt. Pymt.

Cards, etc. Amt. Pymt.

Total

$20,000

$30,000

$750

$500

$1,250

2nd Mortgage Bal. $50,000

$50,000

6%

Interest

Only

Line of Credit $50,000

Payment $250

Pay Off

-$250

$1,000

Income & Expenses

Income

Expenses

Left Over

$5,000

$4,000

$1,000

LINE OF CREDIT AS THE CHEQUE ACCOUNT

Start Balance

Payment / Income

Balance

Expenses

Balance Month One

Payment / Income

Balance

Expenses

Balance Month Two

$50,000

-5,000

45,000

+4,000

49,000

Surplus 1st mo. $1,000 -5,000

44,000Surplus 2nd mo. $1,000

+4,000

48,00012 Month $12,000

2nd Balance $38,000

Reducing the 1st Mortgage1st Year Bal.

Yearly Prin.

Sub Total

From 2nd Mort

Total Year 1

Yearly Prin.

Sub Total

From 2nd Mort

Total Year 2

$200,000

$2,500

$197,500

From the LOC

$185,500

$12,000$12,000

Amortization Schedule

Amortization Schedule For: John and Jane

Property Address: 1324 Owe D’ Bank Way

Loan Programme:

Loan Amount $200,000

Interest Rate 6%

Term 360 Months

1 6.0 1,199.10 199.10 1,000.00 199,800.90

2 6.0 1,199.10 200.10 999.00 199,600.80

3 6.0 1,199.10 201.10 998.00 199,399.70

4 6.0 1.199.10 202.10 997.00 199,197.60

5 6.0 1,199.10 203.11 995.99 198,994.49

6 6.0 1,199.10 204.13 994.97 198,790.36

7 6.0 1,199.10 205.15 993.95 198,585.21

8 6.0 1,199.10 206.17 992.93 198,379.04

9 6.0 1,199.10 207.20 991.90 198,171.84

10 6.0 1,199.10 208.24 990.86 197,963.60

11 6.0 1,199.10 209.28 989.82 197,754.32

12 6.0 1,199.10 210.33 988.77 197,543.99

14,389.20 2,456.01 11,933.1913 6.0 1,199.10 211.38 987.72 197,332.61

14 6.0 1,199.10 212.44 986.66 197,120.17

15 6.0 1,199.10 213.50 985.60 196,906.67

16 6.0 1,199.10 214.57 984.53 196,692.10

17 6.0 1,199.10 215.64 983.46 196,476.46

18 6.0 1,199.10 216.72 982.38 196,259.74

19 6.0 1,199.10 217.80 981.30 196,041.94

20 6.0 1,199.10 218.89 980.21 195,823.05

21 6.0 1,199.10 219.98 979.12 195,603.07

22 6.0 1,199.10 221.08 978.02 195,381.99

23 6.0 1,199.10 222.19 976.91 195,159.80

24 6.0 1,199.10 223.30 975.80 194,936.50

14,389.20 2,607.49 11,781.71

Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance

25 6.0 1,199.10 224.42 974.68 194,712.08

26 6.0 1,199.10 225.54 973.56 194,486.54

27 6.0 1,199.10 226.67 972.43 194,259.87

28 6.0 1.199.10 227.80 971.30 194,032.07

29 6.0 1,199.10 228.94 970.16 193,803.13

30 6.0 1,199.10 230.08 969.02 193,573.05

31 6.0 1,199.10 231.23 967.87 193,341.82

32 6.0 1,199.10 232.39 966.71 193,109.43

33 6.0 1,199.10 233.55 965.55 192,875.88

34 6.0 1,199.10 234.72 964.38 192,641.16

35 6.0 1,199.10 235.89 963.21 192,405.27

36 6.0 1,199.10 237.07 962.03 192,168.20

14,389.20 2,768.30 11,620.9037 6.0 1,199.10 238.26 960.84 191,929.94

38 6.0 1,199.10 239.45 959.65 191,690.49

39 6.0 1,199.10 240.65 958.45 191,449.84

40 6.0 1,199.10 241.85 957.25 191,207.99

41 6.0 1,199.10 243.06 956.04 190,964.93

42 6.0 1,199.10 244.28 954.82 190,720.65

43 6.0 1,199.10 245.50 953.60 190,475.15

44 6.0 1,199.10 246.72 952.38 190,228.43

45 6.0 1,199.10 247.96 951.14 189,980.47

46 6.0 1,199.10 249.20 949.90 189,731.27

47 6.0 1,199.10 250.44 948.66 189,480.83

48 6.0 1,199.10 251.70 947.40 189,229.13

14,389.20 2,939.07 11,450.13

Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance

49 6.0 1,199.10 252.95 946.15 188,976.18

50 6.0 1,199.10 254.22 944.88 188,721.96

51 6.0 1,199.10 255.49 943.61 188,466.47

52 6.0 1.199.10 256.77 942.33 188,209.70

53 6.0 1,199.10 258.05 941.05 187,951.65

54 6.0 1,199.10 259.34 939.76 187,692.31

55 6.0 1,199.10 260.64 938.46 187,431.67

56 6.0 1,199.10 261.94 937.16 187,169.73

57 6.0 1,199.10 263.25 935.85 186,906.48

58 6.0 1,199.10 264.57 934.53 186,641.91

59 6.0 1,199.10 265.89 933.21 186,376.02

60 6.0 1,199.10 267.22 931.88 186,108.80

14,389.20 3,120.33 11,268.8761 6.0 1,199.10 268.56 930.54 185,840.24

62 6.0 1,199.10 269.90 929.20 185,570.34

63 6.0 1,199.10 271.25 927.85 185,299.09

64 6.0 1,199.10 272.60 926.50 185,026.49

65 6.0 1,199.10 273.97 925.13 184,752.52

66 6.0 1,199.10 275.34 923.76 184,477.18

67 6.0 1,199.10 276.71 922.39 184,200.47

68 6.0 1,199.10 278.10 921.00 183,922.37

69 6.0 1,199.10 279.49 919.61 183,642.88

70 6.0 1,199.10 280.89 918.21 183,361.99

71 6.0 1,199.10 282.29 916.81 183,079.70

72 6.0 1,199.10 283.70 915.40 182,796.00

14,389.20 3,312.80 11,076.40

Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance

REDUCING THE 1st MORTGAGE

1st Year Bal.

Yearly Prin.

Sub Total

From 2nd Mort

Total Year 1

Yearly Prin.

Sub Total

From 2nd Mort

Total Year 2

$200,000

$2,500

$197,500

From 2nd Mortgage

$185,500

$3,500

$182,000

$12,000$12,000$12,000

$170,000

INTEREST

SAVING

$47,979

$12,000

49 6.0 1,199.10 252.95 946.15 188,976.18

50 6.0 1,199.10 254.22 944.88 188,721.96

51 6.0 1,199.10 255.49 943.61 188,466.47

52 6.0 1.199.10 256.77 942.33 188,209.70

53 6.0 1,199.10 258.05 941.05 187,951.65

54 6.0 1,199.10 259.34 939.76 187,692.31

55 6.0 1,199.10 260.64 938.46 187,431.67

56 6.0 1,199.10 261.94 937.16 187,169.73

57 6.0 1,199.10 263.25 935.85 186,906.48

58 6.0 1,199.10 264.57 934.53 186,641.91

59 6.0 1,199.10 265.89 933.21 186,376.02

60 6.0 1,199.10 267.22 931.88 186,108.80

14,389.20 3,120.33 11,268.8761 6.0 1,199.10 268.56 930.54 185,840.24

62 6.0 1,199.10 269.90 929.20 185,570.34

63 6.0 1,199.10 271.25 927.85 185,299.09

64 6.0 1,199.10 272.60 926.50 185,026.49

65 6.0 1,199.10 273.97 925.13 184,752.52

66 6.0 1,199.10 275.34 923.76 184,477.18

67 6.0 1,199.10 276.71 922.39 184,200.47

68 6.0 1,199.10 278.10 921.00 183,922.37

69 6.0 1,199.10 279.49 919.61 183,642.88

70 6.0 1,199.10 280.89 918.21 183,361.99

71 6.0 1,199.10 282.29 916.81 183,079.70

72 6.0 1,199.10 283.70 915.40 182,796.00

14,389.20 3,312.80 11,076.40

Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance

73 6.0 1,199.10 285.12 913.98 182,510.88

74 6.0 1,199.10 286.55 912.55 182,224.33

75 6.0 1,199.10 287.98 911.12 181,936.35

76 6.0 1.199.10 289.42 909.68 181,646.93

77 6.0 1,199.10 290.87 908.23 181,356.06

78 6.0 1,199.10 292.32 906.78 181,063.74

79 6.0 1,199.10 293.78 905.32 180,769.96

80 6.0 1,199.10 295.25 903.85 180,474.71

81 6.0 1,199.10 296.73 902.37 180,177.98

82 6.0 1,199.10 298.21 900.89 179,879.77

83 6.0 1,199.10 299.70 899.40 179,580.07

84 6.0 1,199.10 301.20 897.90 179,278.87

14,389.20 3,517.13 10,872.07 85 6.0 1,199.10 302.71 896.39 178,976.16

86 6.0 1,199.10 304.22 894.88 178,671.94

87 6.0 1,199.10 305.74 893.36 178,366.20

88 6.0 1,199.10 307.27 891.83 178,058.93

89 6.0 1,199.10 308.81 890.29 177,750.12

90 6.0 1,199.10 310.35 888.75 177,439.77

91 6.0 1,199.10 311.90 887.20 177,127.87

92 6.0 1,199.10 313.46 885.64 176,814.41

93 6.0 1,199.10 315.03 884.07 176,499.38

94 6.0 1,199.10 316.60 882.50 176,182.78

95 6.0 1,199.10 318.19 880.91 175,864.59

96 6.0 1,199.10 319.78 879.32 175,544.81

14,389.20 3,734.06 10,655.14

Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance

97 6.0 1,199.10 321.38 877.72 175,223.43

98 6.0 1,199.10 322.98 876.12 174,900.45

99 6.0 1,199.10 324.60 874.50 174,575.85

100 6.0 1.199.10 326.22 872.88 174,249.63

101 6.0 1,199.10 327.85 871.25 173,921.78

102 6.0 1,199.10 329.49 869.61 173,592.29

103 6.0 1,199.10 331.14 867.96 173,261.15

104 6.0 1,199.10 332.79 866.31 172,928.36

105 6.0 1,199.10 334.46 864.64 172,593.90

106 6.0 1,199.10 336.13 862.97 172,257.77

107 6.0 1,199.10 337.81 861.29 171,919.96

108 6.0 1,199.10 339.50 859.60 171,580.46

14,389.20 3,964.35 10,424.85109 6.0 1,199.10 341.20 857.90 171,239.26

110 6.0 1,199.10 342.90 856.20 170,896.36

111 6.0 1,199.10 344.62 854.48 170,551.74

112 6.0 1,199.10 346.34 852.76 170,205.40113 6.0 1,199.10 348.07 851.03 169,857.33

114 6.0 1,199.10 349.81 849.29 169,507.52

115 6.0 1,199.10 351.56 847.54 169,155.96

116 6.0 1,199.10 353.32 845.78 168,802.64

117 6.0 1,199.10 355.09 844.01 168,447.55

118 6.0 1,199.10 356.86 842.24 168,090.69

119 6.0 1,199.10 358.65 840.45 167,732.04

120 6.0 1,199.10 360.44 838.66 167,371.60

14,389.20 4,208.86 10,180.34

Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance

REDUCING THE 1st MORTGAGE

1st Year Bal.

Yearly Prin.

Sub Total

From 2nd Mort

Total Year 1

Yearly Prin.

Sub Total

From 2nd Mort

Total Year 2

$200,000

$2,500

$197,500

From 2nd Mortgage

$185,500

$3,500

$182,000

$12,000

$170,000

Interest Savings

From Amortization$47,979

Savings 2nd Year$32,825

$80,804

$12,000

$12,000

THE SOLUTION

• We evaluate client’s total consumer debt

• We calculate the exact split for your 1st Mortgage and Line of Credit to maximise savings.

• Use your LOC like your current household cheque account to avoid interest and simplify your finances.• Should your loans need restructuring, we are

always there to assist.

“Many companies will give you a mortgage …. We show you how to get out of one!”