Strategy #1: Eliminating the Bank Spread

Описание: The Spread is the difference between what banks pay on savings/checking accounts and Mortgages.
Calculate your Cost of Credit - https://mortgageslab.ca/cost-of-credit/


First of five strategies for reducing cost of credit. This video explains how banks profit from the spread between interest paid on deposits (0-2%) and interest charged on mortgages (4-5%), and demonstrates the methodology to minimize this profit center.

Core concept: Banks take your checking and savings account balances, pay you minimal interest, then lend that same money out at mortgage rates—creating a 3-4% spread as pure profit.

Strategy implementation:

Apply all savings directly to mortgage principal
Example: $48,300 in combined checking/savings accounts
Provide $85,000 zero-balance line of credit for emergency liquidity
Result: Eliminate interest on that principal while maintaining access to funds
Annual savings: $2,000-$4,000 depending on balances

Risk mitigation through line of credit at prime + 0.5% ensures you're not illiquid while your money works for you instead of the bank.

🔗 Calculate your spread impact: https://mortgageslab.ca/cost-of-credit/