Paying-off a $400,000 Mortgage at a 35% Discount! (You CAN Too)

How I know this because I have an illustration. An illustration is actually super accurate. In fact, when I open this policy, projection is one thing, right? But projection is based on many different things, including dividends. And the dividends actually got better since opening this policy. So guess what? My overall performance of this policy or growth of this policy is actually higher than it was illustrated initially. Hi, I'm Roman Pushkar with Standard Financial and welcome to Bankers Vault. In today's video, I'm going to walk you through the process of using the infinite banking or the process of becoming your own banker to become completely mortgage free. So you'll learn how to pay off your mortgage using a participating dividend paying whole life insurance. If you don't know what I'm talking about, if you never heard infinite banking or the process of becoming your own banker, then you have an opportunity today to learn about how you can become the banker in your own life and how you can control and own own the system of banking so that all your money can flow through your books and you can be in control of interest of payments and all the payments you can redirect to flow back to your system rather than paying interest to someone else. So let's talk about using the process of becoming your own banker to pay off your mortgage. Why am I recording this video? So you know, I've always wanted to use the process of becoming your own banker or I always wanted to be mortgage free, right? And actually this is how I found infinite banking. I was looking for ways to pay down my mortgage and the only thing I could found was just do extra payments, right? Do extra payments and skip the scheduled plan and save on interest. That's what I, what I was able to find. But in fact you can use something better. So instead of just giving more money to the banker and leaving yourself short of cash, you can actually do something better. You can put this extra cash you have into a place that you own and control that is growing every single day, guaranteed. When the time is right, you can tap into this pool of money, you can take a loan on your terms and you can use this loan to potentially pay off your mortgage. Why I'm saying potentially because this may or may not be your objective. For me, it is actually not my objective, but because I'm coaching Canadians and many of my clients actually ask me, hey coach. Hey Roman. How do I become debt free? How do I become mortgage free completely so that I can use my policies that I have in force, How I can use the step by step process, show me to become Completely mortgage free. By the way, the process of becoming your own banker can be used to not only become mortgage free, but also it can pay down your credit card, car loan, boat loan, a home equity line of credit, whatever debt debts you have. If you haven't watched a debt recapture video, follow the link in the corner and then we will show you a case study how you can use the process of becoming your own banker to be completely debt free or pay down your car or your mortgage or any other debt. So let's talk about the problem. Okay, I have a mortgage. When I opened this mortgage, it was a 25 year mortgage. And the remaining amortization right now is 17 years. Remaining balance on my mortgage is $309,900 and the interest rate right now is 1.59%. I got this pretty nice interest rate. It was interesting story. I actually worked with a mortgage broker and I decided on a variable rate first and then I really, it was a 20, I believe it was 2021 when, when the interest rates were so low, I actually got 1.89% and then at some point the interest rates actually went down and I decided, you know what, it can be better than this. I, I gotta fix it. So I got, I got a fixed rate at 1.59. Right after that the interest rates went up. And now the five year mortgage in Canada you can get for 5% or 4.79%, something like this. So the interest rates are super high. Right now it is up for renewal in almost two years. So I have to renew it in March 2026. The renewal rate is unknown, but most likely my payment will go up. The interest rate will be also way higher than it is today. Again, I'm not sure what it will be, but I will be assuming an interest rate. In my video, my objectives, I want to show you how I can do that without changing my cash flow. Even though I can pay more if I want to. But I don't want to do this right. I want to show you how you can be mortgage free without changing the cash flow. So right now my mortgage payment is $1,617.87 per month, which comes to almost 19,500 a year, including interest and principal. Most likely when I renew, my payment will be more than $2,000. But I'm going to show you how I can do exactly the same thing, be mortgage free without changing my mortgage payment. So I'm going to stick to this number, 1600 $17.87 per month. My second objective is to show you how I can be mortgage free using the system I have in place using the participating dividend paying whole life insurance. So the tool, I have already 12 policies in place on me, my children and my wife. And I have several policies actually on my life, but I'm going to only using one policy. The very, very first policy I opened back in 2020 in November 2020. So in 2020 I was 44 years old. So male, 44 year old, non smoker. I opened it three and a half years ago in November 2020. The premium is $14,000 a year which comes to approximately $1,167 per month. My minimum required premium in this policy is $6,340. And my flexible portion, which is also called in Nelson's book by the way, if you don't know, if you've never heard of this book, please go ahead and grab yourself a copy. Order this book, it's titled Become Neuron Banker by R. Nelson Nash and you will learn how this amazing tool works. So my flexible portion, which in this book is titled Paid UP editions is $7,660. So total premium is $14,000, minimum is 6,340 and then the flexible portion is 76 60. The total cash flow I'm working with is only my mortgage and only my premium. So 14,000 a year and 19,500 a year for the mortgage. That's it. I'm not going to be using any extra cash, extra income, whatever it is. I'm only working with these two numbers and nothing else. Now let's talk about the process. So here's the step by step process. How this system works. In my mortgage, I have a right to pay about 20% down each year to bring my mortgage balance down without any penalties. In most mortgages in Canada, banks or credit unions will allow you to do that. What it also means is that you can actually pay down your mortgage, pay off your mortgage completely in five years. I'm not going to be paying down 20% each year. But what I want to do is I want to wait until my mortgage is up for renewal and at that point I am going to use a policy, use a policy loan to actually bring down the balance. Why do I want to do this? The problem is if I take a 20% down today, sorry, if I take a 20% of my mortgage today, let's say I have access to, let's say $40,000 today, right? So if I put $40,000 on my mortgage, yes, my balance goes down, but what happens to my payment? It doesn't change, does it? So I'm still going to pay $1,617.87 every single month for the next two years. I'm not really gaining anything other than just saving some interest. But at the same time I need to now service interest and my policy loan will incur some interest. Right. I'm not going to be using policy loans right now. I'm going to wait for two years and at that point when my mortgage is up for renewal, I'm going to use a policy loan to bring down my balance on the mortgage. And actually instead of renewal, I'm going to refinance my mortgage. I'm going to actually make it a 30 year mortgage. Yes, you heard it right. So in Canada you actually can do a 30 year mortgage, but you have to qualify for it. So one of the limitations for the mortgages in Canada is it has to be minimum 20% down so that CMHC insurance doesn't get involved in that. Because CMHC insurance only, it's insurance. If you don't have a 20% down payment on your mortgage, it can only allow you to take it 25 years long mortgage. In my case, I will have enough cash in my policy to take a loan and pay down 20% of remaining balance. This will allow me to bring down the balance on the mortgage and make it very, very long in terms of the term 30 years. So my payment goes down. That's my main objective. So my payment goes down and I can free up actually a little bit of cash from my allocated payment, which is, you remember, $1,617.87. So the money that I free up from this payment can actually be redirected back to my systems that my system can receive a little bit of payments, not only someone else's bank. So on this screen you can see that first thing you can see is that the policy is actually right now in month 41 from inception. Right. So when I opened this policy, it was November 2020. Right now is April 2024. Right now it is a 41st month of this policy. Right now policy loan available is $42,106. And if you don't know, I can borrow 90% of my total cash value. So $42,106 is actually 90% of my total cash value. If you want to see what my total cash value is, you just need to divide this number by 90% and you will see. So this is my monthly cash flow that is going directly to My mortgage payment to the bank that I do not control and I don't own this bank, but I own my whole life policy, which is my own bank. The annual premium is $14,000 and it is every November, every year, November, I have to pay this premium again. I'm going to pay not only the minimum, I'm only paying the maximum as well, the flexible portion. So right now I'm in year three of this policy. Next premium is due. November 2024. $14,000 is due and my loan available will actually be higher. You will also see that my starting death benefit in this policy was $222,000. Again, I also have a term insurance on top of this because this insurance is not enough for me because I have a big family. So I'm not going to be talking about term insurance right now because it has nothing to do with my mortgage or with my whole life policy. It doesn't really matter at this point right now. What matters is this specific policy. So as you see right now this is my regular mortgage payment mortgage balance, which is going down naturally because I'm making these mortgage payments and you can see you're here. So this orange line is where we are at right now. Like I said, I'm not taking a policy loan right now because I don't want to pay this mortgage balance down. Because if I do, my payment of 1618 does not really change. So I'm going to wait for almost two years until March 2026. So let's scroll down and see how it plays. November 2025, my loan available is $60,453. And the debt benefit actually goes up from initially $222,000. It will be $364,000. So $142,000 more because I am using the flexible portion of my premium to buy something called paid up additions, which is additional death benefit. So in five years, I went from $222,000 in death benefit to $364,000 of death benefit by adding paid up insurance. If you don't know how paid up insurance works, I recommend you watching this video. It's titled Making Sense of Paid up Additions. Please watch this video. It's almost seven minutes. Richard Canfield is amazing. He's explaining how this works and why this works. All right, so the mortgage balance goes down and this is my renewal. The blue line is my renewal. So what's going to happen is I will have 60,000. I will actually have more. But my example is based on $60,000 of policy loan, which I'm taking from my policy against my policy. So this is insurance company's money, my money. My capital is going up every single day, no matter what, and I'm going to bring down the balance. So you see, the balance here on March 2026 is actually $281,717. And after I applied $60,000, it actually went went down to 221,323. Right now I have a balance here of $60,000 in policy loan, which is at 6.5%. Again, I'm not sure what interest rate it will be, but I'm assuming the interest rate will not change, which may, but it is not going to change all the numbers substantially. What is going to happen is the mortgage at this point is going to renew for not renew, but extend for 30 years. This is going to be a whole new mortgage. So my payment will be $1,056. So I'm freeing up $561 from this payment and 1,056 is going to my mortgage company and 561 is going to to the policy loan repayment. So the policy loan is still incurring some interest on the balance. But then because of the repayment, the balance of my policy loan actually goes down. And I do this for the next five years. You will see no difference. Nothing super interested for the next five years other than I'm still paying my premiums every single year for $10,000. And in five years. Let's fast forward to March 2031. At this point you see that my mortgage balance naturally went down from $221,000 to $140,091, naturally. Right. So, and then my balance of the policy loan also went down. It went down from $60,000 to $43,629. At this point, I have a $103,000 available in my policy to borrow against in addition to the outstanding policy loan. So my outstanding policy loan at this point is going to be 43,000. So in addition to that, I can borrow 103,000 more. So my total outstanding balance on my policy will be $146,304. If you subtract from the mortgage balance, that is left $140,000 mortgage balance, right. If you subtract 103,000, then you will see that the mortgage balance is actually 37,000.

That's it. So I don't think I will be renewing my mortgage again for 30 years if it was a higher mortgage I would probably do that, but in this case I just want to use a heloc. Maybe I'll go to my bank and I will open up a home equity line of credit so that I can completely wipe off this mortgage and be completely mortgage free. So now we're introducing a third account, which is home equity line of credit balance. And then so I'm completely mortgage free officially, but now I have a HELOC and a policy loan outstanding. Right. I'm going to choose between two of them. Which one should I pay now? Should I pay next? So I'm assuming that the policy loan interest is still 6.5% simple interest, but at the same time mortgage. I'm sorry, the home equity line of credit is most likely to be higher in interest, right? So right now it is at 8 or 8.5%. So I should say that probably I'm going to attack my home equity line of credit first. And I may or may not service the interest on my policy loans. But in this example, for simplicity, I want to redirect all the payments exactly the same payment, 16, $17.87 I'm going to use for home equity line of credit, interest and principal. And for now, for some time, I'm not using this payment to bring down my balance on the policy loan. You see, the policy loan actually goes up is because I'm not servicing the policy loan and the interest is adding to the outstanding balance. Now the home equity line of credit goes down and I'm naturally paying it off in about two years. So in March 2033, there's no more home equity line of credit and I'm officially mortgage free. But now I have this policy loan outstanding which I have to continue making payments towards, which is I am officially mortgage free, but I'm the banker for my own family. So all this payment that I'm used to paying for 12 years. No, actually the mortgage, the policy is 12 years, but the mortgage I have been paying for longer. So I'm used to paying this, this exact mortgage payment every single month. So what I want to do is I want to use the same exact cash flow without changing it. And I'm going to pay it to my system that I own, own and control every single month. Remember, I want to make sure that my system is profitable and I'm paying the same exact mortgage payment, even though I can, you know, take off and maybe go to Las Vegas and spend some money, you know, without thinking about paying down my mortgage. Because. Because I can. But one of Nelson Nash's golden rules is never steal the piece, right? Meaning that if you have ownership in control, if you have a banking business, make sure that you don't steal money from a banking business. So in this illustration, all this money is actually bringing down the balance on my policy loan. You see that up to this point the policy loan balance has been increasing. And after that it is now going down again. I'm not going to show you the full schedule of bringing down this policy loan because it is obvious that it will take some time for me to bring it down service some interest. But now what has happened is all my money, so $14,000 is going into my banking system. And now all my payments that I used to be paying to mortgage is now going to exactly the same system. So instead of sending this money away from me, now this money is going to me because I'm the banker in this transaction. And all these payments are coming back to my system. So instead of sending away 19,500 a year as mortgage payment and interest and principal, I have redirected the same payment back to my system and look at the loan available. So my total loan available here is $200,000. And I have 160 outstanding. So I have about 30,000 remaining. I can maybe borrow and maybe buy a car, maybe invest it, maybe do something else, maybe do private landing. The longer I do this again in only one year, you see from it's going from 200,000 to 221,000. So I paid 14,000 in one year. But my borrowing capacity went from 200,000 to $221,000. So where did the $7,000 extra came from is because of compounding. It is money. It is capital that is growing in my own system that I own control working for me. What I wanted to also point out here is the amount of death benefit that has increased. Actually, you can remember that my starting death benefit was $222,000. But at this point where I become completely mortgage free, my total death benefit went up to $602,000. And then next year it is going up again $632,000, right? So the longer I do this, the more death benefit I will have. God forbid something happens to me at that point. My wife now has a house that is free and clear paid off the insurance company what it will do, it will actually if I become an angel at that point, the insurance company will subtract the outstanding policy loan from the proceeds from the debt proceeds, right? So, so at this point, $602,000 minus $160,000. My family will receive approximately $440,000. I'm not planning to die. I'm going to live long life. But at the same time, I'm just showing you how important it is to not only, you know, think about being mortgage free, but also think about the protection, the legacy that you're going to leave behind if something happens to you. Let's look at what we have been able to achieve. So the outcome in the environment of high interest rates, my mortgage payment will actually go down. Think about it. In the environment of, you know, everyone is panicking. Today the Trudeau government introduced a new budget, 2024. Everyone is in panic. I opened YouTube. Everyone is discussing how much more taxes will be paid. Everyone is discussing how the budget has a huge deficit now. We are going to be paying more taxes, we're going to receive less money and a lot of things going on. Everyone is panicking. Everyone is thinking that the world is just going to the hell. But the problem is that people don't have ownership of the finances. People don't have ownership of the banking function in their life. And whatever the government programs we have in place, like RSPS and other programs, they try to create a problem and then give us a solution. And everyone is buying into that. And then everyone is thinking that that is a silver bullet that will save them, but it is not going to because the things are going to become worse and worse. The only people will be benefiting from this is banks and government. Right? So a lot of government debt, a lot of government spending, and everyone is just getting weaker and poor and Canadians are struggling even to pay bills. Not, I'm not even talking about, you know, buying houses or becoming mortgage free. So again, one of, one of the achievements, what I can do using the whole life insurance and the process of becoming your own bankers is not only I can become mortgage free, but I can actually reduce the mortgage payment. How? Because I have access to liquid cash in my policy loans. Had it not been for the, for the liquid cash, it would not be even, would not be even an option for me. Right. So the interest rate, I'm actually, I was assuming the interest rate in the new mortgage, the renewal mortgage is 4%. At renewal, I'm assuming the interest rate 4%. So it is actually 252% higher than it is now. But my mortgage payment is actually 35% lower. That's one of the things that I achieved just using this, the simple process of getting ownership and control over my system. It allows me to put more money into the system and own and control without changing the cash flow. I can go from controlling 0% of my cash flow from year 0 to 100% of my cash flow in year 12. Right. When I started the whole life policy in 2020, I did not control the banking function in my life. Now I'm about 42% because from this cash flow from 14,000 plus 19,500, I control about 42% because 42% of this money is going into my system and 58% is going to someone else's bank right now. But if I choose to go to this path and become mortgage free, then I can actually control 100% of the same payment. 33,500 can be redirected back to my system. My death benefit almost triples in the next seven to eight years since I'm mortgage free in year eight. If you come from now, then I can actually get a HELOC because my house is free and clear. I don't have any mortgage. So is there anything preventing me from maybe taking a home equity line credit or maybe refinancing a house again to take a new mortgage and maybe buy a rental property if I decide to? Right. This is not what I'm interested in. But if I am interested at that point, I can easily do that. Right? All this was I was able to do because four years ago I started a process of becoming your own banker. I started the process of putting money into this system that I own and control that works for my favor that is increasing every single day and has guaranteed cash value growth. And in addition to that, I have a ever increasing death benefit if I do this exactly as Nelson Nash described in this book. It is super important to not only know that this option exists for you, but also be able to do that and be coached by someone like myself or my team. We have a great team of advisors who can actually help you implement the same thing. The same process of the gaining ownership in control so that you can become completely debt free, mortgage free if you decide to. Or maybe start a policy to build wealth inside of your policy inside of you. Maybe you put a policy inside of your corporation if you decide to. So their options are endless. But you don't want to do this alone. You want to have an advisor who understands how this works, who is an authorized Infinite Banking practitioner and everyone in our company, all advisors in our company are practitioners. Get in touch with one of our advisors so that you know exactly how to solve the problem in this time of uncertainty. Thank you so much for watching this video. Remember, if you don't own the banking function in your life, someone else is.