Amir and his wife Jennie have built successful careers over the last 20 years – Amir as an infrastructure engineer and Jennie as a senior executive with a global management consulting firm. They’re prudent spenders and good savers who have been clients of Rubach Wealth for almost two years.

But Amir and Jennie had been feeling pinched financially. Interest rate increases had translated into higher payments on the variable portion of their mortgage. They wanted to add a self-contained in-law suite to their house for Amir’s mother, who had been widowed recently, but weren’t sure how they could afford it.

Here’s how Rubach Wealth helped them:

• Cash flow analysis. As careful as they were with their money, Amir and Jennie were also too busy with work to track what they were earning, spending and paying down. The team at Rubach Wealth sat down with them to figure out how much money was coming and going out each month and over the entire year. This cash flow analysis gave them a clear picture of where they stood financially.

 

• Mortgage refinancing. Rubach Wealth brought in a trusted partner with proven expertise in mortgages. After analyzing various scenarios, the mortgage specialist recommended that Amir and Jennie refinance their mortgage into a more flexible program that combines a line of credit and fixed-term mortgage with the ability to reduce debt every time money is deposited into their account. This would allow them to minimize their interest payments while maximizing their cash flow.

 

• Renovation financing. The mortgage specialist also suggested that Amir and Jennie draw from the equity in their home to pay for their in-law suite extension project. The best way to do this was through the home equity line of credit set up as part of their mortgage program. Rubach Wealth backed this solution, knowing that Amir and Jennie had the discipline to use their home equity line of credit only for the extension.

 

• Putting it all together. With a refinanced mortgage, a home equity line of credit and a better understanding of their cash flow, Amir and Jennie were ready to greenlight their house extension project. Rubach Wealth updated their cash flow analysis to take into account the new fixed-rate mortgage payments and the line of credit withdrawals the couple would be making over the next few months. Rubach Wealth also updated Amir and Jennie’s financial plan to reflect these latest insights and developments.

 

What’s next: Estate planning for Amir’s mother

Building the new in-law suite took two months, with the project running smoothly overall. Amir’s mother has moved into the suite and has already made friends with the next-door neighbours. She has asked Rubach Wealth to help her with her estate plan.