August 16, 2018

Do You Know Someone That Needs Financial Assistance?

The holidays are over and now the credit card bills start coming in.  Prior to the holidays, statistics state that a majority of consumers  credit cards were already maxed out.  Add on gift buying and you have financial worries about how you are going to make all your payments.  This is a very stressful time of year for many people.

I work with many clients who can no longer meet their monthly obligations due to their debt load.  Between their mortgage payment, property taxes, utility bills, loan payments and credit cards, there just isn’t enough monthly income to cover all the expenses.

I had a referral last week that looked list this.  Client has $50,000 in credit card debt plus the mortgage and is on disability and pension income.  The first thing I do is look at the existing mortgage and if we were to refinance the mortgage, what would the penalties be to break the mortgage and what rate can we expect to receive compared to what the client is currently paying.  Build in the rates being paid on the credit cards, I do a profitability analysis and determine what is in the clients best interest.

In this particular scenario, the mortgage is up for renewal within the next 3 months so the penalties will be nominal.  I will be refinancing the home, paying off all the debts and the client will then be able to afford all the monthly obligations.  As the debt servicing will still be very tight, I will work with my client to establish a budget and hopefully a savings plan so we don’t get back into high interest rate credit cards again.

It gives me such pleasure to see the look of relief on clients faces when they know they will sleep better tonight without worrying about their finances!

Colleen Saunders is a 20 year veteran in the mortgage industry, serving Mississauga, Burlington, Oakville and Toronto and offering all mortgage related services such as 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  or call 416-459-2406