Useless Brochures

Below is page 7 of a recent brochure (592180–802) that is available from a Canadian lender. The terminology is confusing. The omission of the weekly payment plan under the heading “Own your home faster for less!” is an obvious oversight, or is it?

First of all, one should always try to increase regular principle payments regardless of the payment frequency. The statement, “Increase you regular principal and interest payment …. ” implies that one can actually increase their regular interest payments. Increasing your interest payments is meaningless. No one in their right mind would increase their interest payments. You increase your blended payment, the interest portion remains the same for that period, the increased money by definition is applied towards the principal and thus the interest charges are reduced on the next payment. The author of this brochure is using sloppy terminology. The line should have read, “Increase your regular blended payments by up to a 100% over the term of your mortgage.” Some may say that I am being a nit picker but I have had numerous calls of late asking me to clarify that page in the brochure.

Secondly, why wouldn’t this lender at least mention weekly or biweekly payment mortgages as they outperform the lump sum payment methods hands down? It is ironic that this lender initially introduced the weekly payment plan in 1984.