Latest in Mortgage News: Newton Launches Rate Search Engine “Discovery” + MORE Oct 13th

Part 2 of 2….  In Part 1, we examined rental properties and how they can be a great way to reduce your taxes, build net worth and create an income stream.  Part 2 looks at Interest payments.  Interest payments are a big part of our personal expenses.  Here are a few suggestions on how to reduce your interest costs.

INTEREST PAYMENT REDUCTION TIPS

It is estimated there is over $2.21 trillion worth of personal debt outstanding in Canada.   $1.44 trillion of this is mortgage debt and $769 billion is credit card and other debts.   Interest rates can vary from 2.60% for a Variable rate mortgage to 20% for a credit card.  Banks make an obscene amount of profit from these interest rates.  Let’s reduce the amount we contribute to their coffers…

Consolidate your debts. There is no reason to carry credit card balances if you qualify or have access to a line of credit. Interest rates for unsecured lines of credit are around Prime plus 3%… that’s 7% today.  ($20,000 in credit cards could cost you around $4,000 in interest annually… a line of credit cost around $1,200 per year… a savings of $2,800 per year)…

Newton Connectivity Systems this week launched its new broker rate search engine, Discovery. The system, which also serves as a rate distributor for lenders, promises to improve efficiency and the quality of service brokers can provide to their clients, Kevin Dear, VP of Broker Experience at Newton, told CMT. He noted that most brokers are […]