All-In-One Banking Generates Cash Flow
When taking on a mortgage to purchase a home, the amount of interest paid on that loan can be as much or more than the actual cost of the house itself. But it doesn’t have to be that way.
An all-in-one account is a revolutionary new concept to financial management that could save significant time and money over traditional financing. It is more than just a line of credit secured against property as is the case with many banks. It is an all-in-one flexible mortgage account that can help to save thousands of dollars in interest charges, simplify finances, and pay off debts many years earlier.
Most Canadians have learned to manage their financial affairs by doing two things:
- Depositing their income and other short-term assets into chequing and savings accounts.
- Borrowing when necessary, through mortgages, lines of credit, personal loans, and credit cards.
Sounds simple enough. Unfortunately, most financial institutions pay little or no interest on their customer’s deposits, while at the same time charging high interest rates on the money they lend out. Wouldn’t it make more sense if deposits and borrowings were combined? Why not have every dollar earned go towards paying down debt until those monies need to be spent?
An all-in-one account does exactly that – and more! It brings mortgage, savings and income together into one multi-purpose “borrowing and chequing” account. Any income deposited to the account instantly reduces the amount borrowed. As bills and other expenses are paid throughout the month, the amounts owed will slowly increase again, but the overall savings could amount to thousands of dollars. With an all-in-one account, every day that even a dollar of income stays in the account, there is less debt and so therefore less interest to pay.
An all-in-one account combines all debts, savings, borrowings, and income into a single personal borrowing and chequing account, including:
- ongoing sources of income
- chequing and savings account balances
- mortgage payments
- lines of credit
- credit card debt
- car loans / lease payments
- personal loans
The concept of having an all-in-one account makes perfect sense: it brings all banking needs together to simplify finances so that income and savings can work harder to reduce debt faster.
An all-in-one provider will usually lend up to 80% of the appraised value on an existing home. This money could be used to pay off the balance of an existing mortgage, personal lines of credit, and any other outstanding debts. Pay just one low interest rate on every dollar borrowed.
Put Savings to Work
Frustrated because of earning little or no interest on chequing accounts, savings balances and short-term investments? An all-in-one account can help to put that money to work. It applies those balances against borrowings, instantly reducing total debt… and saving a person much more in interest costs than they would likely ever make in interest earnings! And what’s more, those monies can be taken back out whenever needed (up to the borrowing limit).
Put Income to Work
By adding regular income to an all-in-one account, a further reduction in debt is triggered the instant the deposit is made. One’s income immediately begins working to reduce loan interest costs until it is needed for monthly expenses. With even just one extra dollar of income in the account, debt is reduced faster and so there is less interest to pay.
An all-in-one account could save Canadian families thousands of dollars in interest costs and help them become debt-free years sooner as compared to the old way of banking.
An All-In-One approach can help your money to work harder an help you to achieve your financial goals.
- No principal payments are required as long as borrowing limits have not been exceeded.
- For illustrative purposes only. A rate of 3.5% is used for the illustration above and assumes that all values will remain constant throughout the entire duration. The rate applied to an All-In-One account is usually variable and charged monthly based on the daily closing balance. Note that rates may be subject to change at anytime and are not guaranteed.
Read what Canadians are saying about how an all-in-one approach has changed the way they bank.
Interested to learn more? Just complete the information request form and your query will be forwarded to a qualified banking consultant who will be able to answer all of your questions.
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Important notice: Savii Financial Concepts is not a mortgage broker and does not in any way solicit mortgage business. The content of the posted article is intended strictly for educational purposes. Any and all inquiries relating to all-in-one banking and/or conventional mortgages will be directed immediately to a qualified banking consultant.