Mortgage Broker

Fall 2014

Mortgage Broker is the magazine of the Canadian Mortgage Brokers Association and showcases the multi-billion dollar mortgage-broking industry to all levels of government, associated organizations and other interested individuals.

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24 | fall 2014 MortgageBroker NavigatiNg the sea of consolidation loans can be more complex than it first appears. With the banks constantly changing their lending rules to the scores of secondary or alternative lenders, mortgage professionals can find it challenging to determine the best course of action for their clients. Mortgage brokers work with many clients who have multiple credit card accounts, car loans and lines of credit. With credit card interest rates hovering as high as 29.9%, it's very difficult for consumers to pay down or pay off these cards and in many cases consolidating accounts, loans and lines of credit into one loan makes sense. e benefit of a consolidation loan is not only the resulting lower monthly payment but also a substantial interest savings combined with the ease of one or two monthly payments. Most people find it is much easier to budget with a pre-set monthly payment instead of several varying payments, dates and interest rates. Mortgage interest rates are among the lowest borrowing rates available for consumers, compared to the rates for unsecured debts such as credit card accounts. In these cases, consolidation loans where real property is used as security are usually the most effective option to help consumers restructure and pay down debt. Make it a best practice to help clients develop better financial management skills by explaining how to maximize this new-found cash flow Consolidation Benefits By crystal foti

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