Did You Know… 60% of Canadians have two or more credit cards. The average outstanding balance is $3,500. (Source: CMHC 2013 Change in the Canadian Mortgage Market Report, May 2013). By using the equity in their home as security, your clients can reduce their monthly payment obligations and save money on interest charges. As credit card charges add up, speak to your clients about the advantages of debt consolidation: • A significantly lower interest rate – saving your clients thousands of dollars over the long term. • One monthly payment – allowing your clients to keep track of debt and simplifying financial decisions. • Debt is conveniently secured in one place – full access to financial records and updates from only one location. • Lower monthly payments – extending debt repayment over a longer period of time. If your client’s mortgage has payout penalties, calculate the loss/benefit. Long term savings from a reduction in interest rate charges and monthly payments are very likely to offset any payout penalties. Your Client’s -SAVINGS OF $987 PER MONTH! Old Plan Amount Rate* Monthly Payment Mortgage $200,0006.00% $1,432.00 Car Loan $13,000 6.50% $254.00 Credit Card $3,000 19.00% $151.00 Line of Credit $8,000 7.00% $350.00 TOTAL $224,000 $2,187.00 New Consolidated Plan Amount Rate* Monthly Payment $224,000 5.00% $1,200.00 *Rates used above are for illustrative purposes only.