Debt Management: "Clear Home Mortgage"

Strategy Name: Clear Home Mortgage
Type of Strategy: 'Variable' Strategy
Impact on modelling: Money is moved from the Bank Balance to the Principal Residence Liability
Default: A balance equivalent to that of the Mortgage, will be used from Bank Balance to pay off the Mortgage. 
 

Recommendation: In this example, we are recommending that the client utilises their money available at the Bank to pay off their Mortgage immediately

1. Increase/Decrease: For the purpose of this strategy, we would always recommend selecting Increase
2. Amount: A 'variable' strategy will allow you to either choose Relative or Fixed. In this example here, if we were recommending to complete this at a future date, we wouldn't know what the balance would be so utilising the Relative Figure and choosing 100% ensures that the outstanding balance of the Liability will be paid.  
3. Repeats: As you are clearing the mortgage, this will not repeat.
4. Starts: You have the option to recommend this 'immediately' or set a future date or client age.