The Mortgage Accelerator

Today I will again be featured on Experts on Call on Ottawa's CFRA 580am at 4pm. I will be discussing 'The Mortgage Accelerator'. To listen live click here.

I will also be speaking with Mortgage Architects on Wednesday November 07 at 7pm in Ottawa at the Embassy West Hotel.

Although the program is considered to be innovative and valuable, it is also complex and difficult for an individual to implement on their own. We have built an experienced management team to manage the program for the individual as well as to provide detailed reporting. In the upcoming weeks I will have the ability to provide clients with a unique web based experience that will not only allow people to log in and track their progress but also to show their whole financial picture in an easy to access platform.

For the purposes of the radio show I am going to give a rundown of how the program works.

Benefits of the Mortgage Accelerator:

1. Pay down your mortgage faster.
2. Gradually make your mortgage payments tax deductible.
3. Increase your tax returns every year.
4. Build an investment portfolio as you pay down your mortgage.

Key Ingredients in a Mortgage Accelerator:

1. A mortgage:

Preferably a readvanceable mortgage. Merix is an excellent provider of these products. These types of mortgages are also known as 'money merge' accounts.

2. Conservative investment loan program:

The key word: conservative. Size doesn't matter when starting out. For most people, I recommend starting small with a leverage program. Getting comfortable is important when using borrowed assets. It is very important to review all the aspects of the risks involved before entering such a program. However, when done properly, it can be an excellent tool for financial growth.

3. Return of capital investments:

AKA T-SWP programs. Click here for my last article regarding ROC investments. As well, here is an article from Fidelity about their T-SWP programs.

4. Management:

Since there are different transactions involved in making the payments either tax deductible or directed towards the mortgage, it is important to have proper structure. This calculator will help you see your potential outcome based on how much you consider putting towards the accelerator program.

It is very easy to use. Simply input your numbers into the white boxes in the left column. The 'potential savings per month' column is what you can save over and above your mortgage. This also is programmed to show how much of an investment loan program you can service. Play with it to see what you are comfortable with.

The management component is very important because there will be five separate transactions that take place. These transactions are very important towards the tax savings and debt reduction. In order to have this working properly the structure is the most important element.

If you would like a detailed diagram of how the Mortgage Accelerator works feel free to email me.

Again, feel free to listen to the program today at 4pm 580am Ottawa.