Terri and Sams mortgage dilemma Fixed vs. floating rate mortgage Study 5 year intervals (1950-2000) * Better off with floating rate Renew annually Source: Prof. Moshe Milevsky, Professor of Economics, York Univ.
Advice for Terri and Sam Consider floating rate Lock in only to establish comfort level before moving to variable rate
Sarahs savings Wants access to her $10,000 Minimal debt Concerned about retirement savings
Putting Sarahs money to work Non-registered investment Security for line of credit Access to cash in emergencies Low rate of interest
Three problems, one solution 1.Convert expensive debt to regular debt 2.Reduce interest with a variable rate mortgage 3.Put savings to work Flexible mortgage account
Save yourself a whole lot of money Flexible Mortgage Account Combine floating rate approach with savings of debt consolidation Debts, savings and income in one account Save thousands in interest Access to money when needed
Tips for your fiscal fitness Pay off credit card debt immediately Pay new charges in full each month Avoid retailer financing Avoid overpaying with interest traps Use windfalls to reduce debt Switch to variable rate mortgage Use credit card to pay monthly expenses and pay balance when due
What you owe and what you own Save interest today Invest for tomorrow Get on track with debt counseling Speak to your financial advisor