Mark and Sarah were a fairly typical couple when we met them 5 years ago. He worked in the trades, while she was in customer service, both with full time hours and a steady household income. They were moving from a condo to a family home, and everything went smoothly through their mortgage process.
We stayed in touch through annual check-ins with Sarah and Mark, and there were no signs they would do anything other than renew their mortgage when the term was up. So we were a bit surprised when they called us a little more than a year before the end of that mortgage term.
Like many people, Mark and Sarah had discovered that there were some costs to owning a freehold property that they had not foreseen. They had opened a couple of unsecured lines of credit at high interest rates to help with their expenses, but it was time to consolidate that debt into a more manageable payment. They chose to refinance their mortgage, paying out their lines of credit – and the penalty for leaving their previous term early – with some of the equity they had built in their home.
It seemed as though Sarah and Mark were set, with a solution that helped to improve their monthly cash flow and let them make progress towards paying down their debt. And then their dream house was listed for sale.
Only 3 months after their previous mortgage funded, we were working with Mark and Sarah again to ensure they could purchase the property they truly wanted. They would once again face a penalty payment for breaking their mortgage term early. However, since we had paid out their debts during the refinance, both Mark and Sarah's credit scores had improved and the penalty was largely offset by a lower interest rate.
With our one-stop service, Sarah and Mark were able to get their home insurance quickly and efficiently. They also each secured a life insurance policy that will give them more flexibility than their previous mortgage insurance coverage.
Now settled in their dream home, we can't wait to see where the next 5 years will take Mark and Sarah!