Do you have a mortgage? If so, have you explored the option of refinancing it with interest rates being so low? There is a high probability that you could save money by doing so right now.

I am in the process of doing this right now. This will save me about $4800 over the next 2 years. That is $200 per month. I don’t know your specific financial situation but I know I could use an extra $200 per month right now. This savings includes the early payout penalty for my current mortgage.

This refinancing will allow me to lock some of my mortgage with a new five-year term with an interest rate of around 2% per year. Imagine what people who had mortgages in the early 1980s would think of that rate. The interest rate back then reached a high of around 17%. While I will be locking in a portion of my mortgage into a new 5-year term, the rest of it will be set up in a Manulife One account. This is an innovative, all-in-one account that allows me to combine my mortgage (and any other debt one may have) with my income and short-term savings. Every dollar I deposit will be put directly against my mortgage. This allows me to reduce my mortgage by the amount of each pay-cheque I receive. It also allows me access to the equity in my home when I need or want it. I become in full control of my money instead of having to follow the rules of a traditional mortgage. These small changes should allow me to pay off my mortgage quicker than the traditional route while also reducing the amount of interest I pay.

Here is a link to Manulife’s online calculator to see if the Manulife One might save you money. https://manulifebankmortgages.ca/manulife-one/calculators/

If that option is not better for you, it is still in your best interest to look into the costs and savings of refinancing your existing mortgage. There is a good chance that you could save money by refinancing right now. If you have questions about the steps needed to do this, please let me know and I can connect your with a retail lending specialist.