HOW CAN YOU BEAT THE BANKS?

2. DO YOU OWN YOUR HOME –
OR DOES YOUR LENDER?

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

4. On average our
clients learn to:
Pay off
their 30 year loans
in 8-14 years!
Without making
Higher
Monthly
payments

5. No Mortgage Payment?
What could you do?

6. MORT – GAGE
Pledge 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/

7. The Cost of a $200,000 Mortgage @ 6%
(Is It or Isn’t It 6% ?)
Year Total Paid Principal Interest Balance
1 14,389 2,456 11,933 197,543
2 28,778 5,036 23,714 194,936
10 143,892 32,628 111,263 167,371
20 287,784 91,992 195,791 108,007
30 431,677 200,000 231,677 0

8. Compare the Options
Total Principal Principal
$200,000 & Interest & Interest
Repay Fortnightly Monthly
YEARS TO BE DEBT 12 YEARS 25 YEARS 30 YEARS
FREE
$97,637 $184,367 $231,677
INTEREST PAID

9. YOU HAVE CHOICES!!
REGULAR CHEQUE ACCOUNT We Pay
Deposit Income For
Mortgages • Cheques
Household • Service Fees
Cheque Acct Living Expenses • Money orders
Earns • Travelers cheques
• Bounced cheques
Credit Cards, etc.
0%
Interest
Miscellaneous
INTEREST ONLY 2 ND MORTGAGE
Deposit Income/ Benefits
Make Payment
Mortgages • Simple Interest
Income
• Interest Only
Lowers Living Expenses
• Pre-Approved Limit
Balance –
Credit Cards, etc. • Purchasing
Saves $$ Power
(interest)
Miscellaneous

10. John & Jane

11. What’s In A Home?
Value $400,000
1st Mortgage $200,000
Payment/Month $1,200
Principal/Month $200

12. Fixed 1st Mortgage
1st Year Balance $200,000
Yearly Principal $2,500
$197,500
Sub Total

13. Example: Consumer Debt
Debts That Could Be Consolidated
Loans (car, etc.) Amt. $20,000 Pymt. $750
Cards, etc. Amt. $30,000 Pymt. $500
$50,000
Pay Off
Total $1,250
-$250
Line of Credit $50,000 $1,000
6%
Payment $250
Interest
Only
2nd Mortgage Bal. $50,000

14. Income & Expenses
Income $5,000
Expenses $4,000
Left Over $1,000

15. LINE OF CREDIT AS THE
CHEQUE ACCOUNT
Start Balance $50,000
Payment / Income -5,000
Balance 45,000
Expenses +4,000
Balance Month One 49,000
Surplus 1st mo. $1,000 Payment / Income -5,000
Balance 44,000
Surplus 2nd mo. $1,000
Expenses +4,000
12 Month $12,000
Balance Month Two 48,000
2nd Balance $38,000

16. Reducing the 1st Mortgage
1st Year Bal. $200,000
Yearly Prin. $2,500
Sub Total $197,500
From 2nd Mort $12,000 From the LOC
Total Year 1 $185,500
Yearly Prin.
Sub Total
From 2nd Mort
Total Year 2

17. 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

18. Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining
No Rate Payment Principal Interest Balance
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 11,933.19
13 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

19. 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 11,620.90
37 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

20. 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 11,268.87
61 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

21. REDUCING THE 1st MORTGAGE
1st Year Bal. $200,000
Yearly Prin. $2,500
Sub Total $197,500
From 2nd Mort $12,000 $12,000 From 2nd Mortgage
Total Year 1 $185,500
Yearly Prin. $3,500
$47,979 INTEREST
Sub Total $182,000 SAVING
From 2nd Mort
Total Year 2 $170,000

22. 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 11,268.87
61 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

23. 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

24. 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 10,424.85
109 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 1,199.10 346.34 852.76 170,205.40
113 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

25. REDUCING THE 1st MORTGAGE
1st Year Bal. $200,000
Yearly Prin. $2,500
Sub Total $197,500
From 2nd Mort $12,000 $12,000 From 2nd Mortgage
Interest Savings
Total Year 1 $185,500
$47,979 From Amortization
Yearly Prin. $3,500
Sub Total $182,000
$32,825 Savings 2nd Year
From 2nd Mort $12,000
Total Year 2 $170,000 $80,804

26. 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.

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