A new mortgage software program called Smart Equity has been launched exclusively in Canada with the broker firm Home n Work Mortgages.
The program is described by Home n Work president Greg Stanley as a "GPS system" for finances. It prompts clients to pay down their mortgages faster with a "reverse interest cancellation" strategy that involves borrowing money from a HELOC to make monthly payments and reduce the principle.
"In this economy, the best advice to give to clients is to pay down debt faster," said Stanley, who is also a certified financial planner, adding the software is only suitable for those with good credit and who spend less than they make each month. He also noted the software could be used with a Smith Manoeuvre-type strategy.
Smart Equity requires a financial professional to set up clients with a line of credit and the software, which sells for just under $1,000. Stanley said his company is open to working with other mortgage brokers who want to use the program and is also exploring co-branding opportunities.