Money Safe In Diversity

Mortgage diversity is the emphasis of financial planning. The mission of family financial planning is to maximize the financial benefits of a family but also keep the financial stability for the future and kids. So, the combination of fixed rates with variable rates, or, a short-term one with a long-term one not only offers more flexibility but also better able to take advantage of. To create a way to blend both splitting mortgage is the easiest way to pay down mortgage faster against interest rate fluctuation.

Mortgage is a security interest on real property grant to a lender. Influenced by Canadian housing bubble, the applications for mortgage when buying a house are in an increasing trend. Based on experience of living in Canada for long, the most important investment most Canadians will have to make at some point in their life is buying their very first home.  Lack of cash, and preparation for the future is always the top reasons for mortgage applications.

More importantly, there’s a saying in financial planning “don’t put all the money in only one basket”, which means we need to take mortgage with different risk levels into the consideration. Some mortgage is low interest rate but high risk. Some mortgage is high rate with low risk. The combination of these two will be the best choice for a family financial planning.

The best recommended diversity would be a combination of two products. More than two, maybe will be a obstacle in good management on the other side.