program info

What is the Financial Equalization Program?
The Financial Equalization Program is a unique, proprietary copyrighted financial plan.  While the Program is not a loan program per se, it utilizes the mortgage as a strategic tool to accomplish several or all of the following plan features:

1. Cut the mortgage repaying time by up to half
2. Pay off debts (which can include credit cards, school loans, personal loans, car payments, etc.)
3. Increase monthly cash flow (generally from $200-$500 per month)
4. Provide a lump sum of cash
5. Save thousands of dollars by paying your mortgage off in up to half the time or less (in turn, building equity and net worth much faster)

This can all be accomplished with no up-front, out-of-pocket expenses, with the exception of the property appraisal fee ($200-$250), which will be reimbursed at the closing. The charge to the client for the program is included as a fee in the loan closing costs.

How does the Financial Equalization Plan work?
The Financial Equalization Program simply takes advantage of the "weak links" in the mortgage amortization schedule and converts it into the borrowers' favour. This results in time becoming the borrowers' ally rather than the banks. Further, these techniques will increase the principal payment portion of the mortgage payments while, over time, decreasing the monthly mortgage payments overall. The Program is based on refinancing a mortgage and consolidation of as much of the borrowers' debt as possible. Typically, with a conventional mortgage refinancing, this is where the advantages stop. The borrower, in most cases, is now strapped with a new 25-year mortgage. However, with the Financial Equalization Program, by adhering to the program’s directives, a borrower can accelerate the pay off of the mortgage’s principal balance and save tens of thousands of dollars, again with no out-of-pocket expenses to the borrower.

Specifically, there will be a designated amount of money that will be applied to the principal of the loan when directed to, on key dates, by the program. This is money that has been derived from the consolidation.  Further there are complex calculations to compensate for interest rate increases and to determine how fast the mortgage principal pay-off can be accelerated. Each case is customized to the client’s individual financial situation and their needs (what they want this plan to accomplish). Each borrower will receive a portfolio within 60 days after the mortgage closing, detailing his/her individual case, including instructions on what to do throughout the duration of the mortgage term.

The Financial Equalization Program does not involve speculative investment and there is no necessity for additional income or expenditure. There is no greater risk involved than would apply to any mortgage loan provided by Canada's leading banks. In fact there is less risk, as the client isn’t exposed to the length of time of indebtedness as in a usual mortgage contract.

Profile of Clients
This Program is a specialized product. It works well with clients who meet the following criteria:

• Have an existing mortgage
• Have equity in their home (25% or greater)
• Have a good credit rating
• Have other debt (credit cards, loans, car payments) 
• Currently employed (including self-employed)

However, anyone who is interested in the Program should at least go through the qualification process if they have an existing mortgage (some people have qualified even though they haven’t met all the criteria).

Generally, the people who qualify for the Program meet the following profile:

Most clients have a conventional mortgage and they have been paying their bills on time throughout their lives. As a result, they have good credit. However, they are consistently in debt with mortgage payments, credit card payments, school payments, car payments, etc. Further they have some equity in their home (usually 25% minimum).

It should be noted that many people haven’t refinanced conventionally because of the following reasons:

• Complacency
  Complacency is overcome by personal recommendation from a trusted financial professional or existing client and the full disclosure contained within the Moneysmart Consultants presentation. 
• Unaware of the benefits of consolidation
  The benefits of consolidation far outweigh any negative aspects because of the unique manner in which the loan document is constructed and the method used to pay the monthly amounts requested by the lender.
• Do not want to get into another 25-year mortgage obligation
  Our promise to each and every client is to dramatically shorten their time to pay, by as much as half of where they presently are, or we will not proceed with the Program.
• Waiting for interest rates to come down 
  In the case of a Moneysmart client, the interest rate isn’t nearly as important as the amount of time that the principle is exposed to the interest. We structure each client’s mortgage to effectively re-direct a portion of the money they are already paying to the lender as interest towards the principle

In short, Moneysmart clients use leveraging to dramatically increase their real equity build and consolidation to significantly increase their household cash flow.

Results of submitting your financial situation to Moneysmart Consultants are both immediate and far-reaching. The immediacy is the increase in cash flow of $200-500 per month.

The far- reaching is the certain removal of years of ‘time to pay’, which eliminates thousands of dollars of interest. No program is placed unless those criteria are met.

It should be noted that implementing the Financial Equalization plan exclusively offered in Western Canada by Moneysmart Consultants is a three-stage process. You cannot buy the program "off the shelf". Either your math works or it doesn’t. The first stage is simple: see if you have the pre-requisites to submit to the second stage. The second stage is actually submitting your financial picture, as it stands (fill out a confidential questionnaire), to Moneysmart Consultants to see if a summary can be generated. The third stage is placing your new proposal with a Canadian lender, under the guidance and scrutiny of local, licensed mortgage brokers and local, independent lawyers.

Remember, you cannot purchase this Program!
Either you qualify or you don’t. If you and your current situation mathematically fit, then the results can be outstanding.

Shouldn’t we see if you qualify?

The ability of Moneysmart Consultants to apply the Financial Equalization program to any specific client results in an immediate benefit of increased cash flow.

Secondly, the long-term goal of paying the mortgage out becomes a near term goal.

Both of these results are guaranteed or the program will not be offered to the client.