sue and ron's Wealthy Homeowner™ Program
Sue and Ron have been married and home owning in the GTA for 7 years. They were ready to move and had built $200,000 of equity in their current home. We qualified them on their HDS to best fit a home priced at $400,000 while maintaining a 75% loan to value ratio.
Sue and Ron being in their early 30s expected to continue to own one home or another at least for the next 40 years and hopefully 50 or more. They enjoyed travel and were planning to add children to their family so any surplus income would be channeled to those expenses. Sue and Ron had not utilized their TFSA account as of yet which offered $96,000 of room. They preferred their mortgage payment alone did not exceed $1450 but still hoped to add equity as quickly as possible.
They were well employed but there was some concern that any job lose could put their plans on hold.
They were a health conscious couple who planned to update their home to ensure it was a safe and healthly environment to raise a child.
Had Sue and Ron been more risk adverse, Principle Guaranteed Investments with lower returns could have been considered but on any 40 year window would probably see a change in risk strategy 3 to 5 out. Sue and Ron will be more than financially capable to moving to a larger home or continuing to fill their TFSA from year 10 onward.
Really the program Sue and Ron chose is so risk averse to begin with any optional protections are in all probability not necessary.