There is a GUARANTEED way to STAY IN DEBT:  Get a MORTGAGE without a PLAN!

How to understand debt, restructure your finances and BECOME DEBT FREE much sooner than you imagined!

 Hi there! My name is Joe Ornato, and I'd like to introduce you to a new way of thinking about your mortgage!

What’s it like to own a home? I remember the feeling of shopping for my first home, picking out the paint colours, dreaming of which room will be my workout room and my entertainment room. I envisioned family barbecues on the deck on a warm summer evening, sipping on a smooth glass of Cab-Merlot red wine, feeling the velvety taste linger as I felt at peace with my new investment as I watched my children play in the yard.

Looking back, I never really gave much thought to the budgeting and the debt implications of the purchase, even though I was a banker in the mortgage industry! It 's all seemingly simple and accepted by society that when you buy a home, you justify the purchase, then you apply to borrow for it.

After my fourth home and 13 years after my first purchase, I realized that the mortgage is tone of the most overlooked, yet powerful financial tools, but it is the one that gives us our dream and then takes it away. Mortgage debt can propel you into the trapped routine of working to pay bills, only to re-borrow, then work some more, pay some more bills and pay some of your debt, only to repeat the cycle every few years.

It really hit me when, after the first five years of my mortgage broker career, I started getting repeat business. I mean, who doesn’t like repeat business? That means my clients liked my service, and, of course, I was honoured to help them achieve their immediate goal, be it another purchase or to consolidate debt into a more manageable payment. However, what really baffled me was the self sabotaging and unconscious habits we have as humans to always want more than what we already have! I was getting repeat business because my clients were purchasing their dreams on credit and worried about the consequences later.

It then became a passion of mine to ask the question, "Why do we tend to over-spend and under-save?".

My journey of studying debt lead me to the fact that borrowing has been made easy by our lenders. Let's face it, The Bank Of Canada (BOC) has created and environment with the lowest borrowing rates in history! Unfortunately, my customers found it too easy accumulate more debt.  We are so blinded by the last decade of low interest rates that we have become complacent. In fact, I do not think there is a first time buyer today who could ever conceive that interest rates can go higher than 6%, and this disturbs me! The historical average of mortgage rates in Canada is somewhere between 8-10%.


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How can we achieve any of our financial goals, when we believe it is a duty to fulfill immediate desires with purchases using debt and then justify those purchases?

Still better,

Why do we believe that debt products such as mortgages, loans and credit cards can help us achieve financial freedom by perpetual refinancing and consolidation?


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So now I ask the question, "why do we tend to over-spend and under-save?"

It has become a passion of mine to break the cycle of perpetual borrowing into three major causes:

The Monetary System:

Money is simply debt!  Once you understand that money was created out of a need for greed and sly thinking, you realize that the more exposure you have to debt, the greator control others have over your future.  For a really simple overview of our monetary system, click here. (Youtube™)

Neurological malfunctions in our brains:

Our brain is the most powerful organ within our bodies.  However, what does our biology have to do with our debt.  Apparently a lot! 

When you decide to buy something, there is a release of a feel good chemical known as dopamine.  However, it is not the purchase that produces the release of dopamine, it is the "expectation" that the purchase will make us happy!  Ever wonder why that brand new car felt good before you bought it and then 2 months later you wonder why you were so excited?  That's dopamine in action.  The problem is that dopamine kicks in early in the buying process, and because we have access to credit, we really don't feel the affects of losing any money because NO MONEY has exchanged hands.  Rather, you used credit (money-sometime in the future) to make a purchase that satisfied the dopamine rush built on the expectation that something good was about to occur.  In a society where losing something is not desirable, it is no wonder as to why our banks have created debit and credit cards.  When we use "plastic" to purchase, we don't experience what  some psychologists call "loss aversion". Let me demonstrate what this means. Try this little exercise for the next week:

Take out enough CASH for your groceries, gas for the car, eating out, coffee, entertaining, etc.  My weekly figure for these is $500 per week.  Then leave your debit and credit cards at home and only use the cash.  If you are like me, you will think twice about your purchases for that week because you are actually giving up that piece of paper called "money" in exchange for a good or service!  On the contrary, when this is done with plastic (debit or credit card), you get to keep your plastic and put it back in your wallet!

Conclusively, our brains are hardwired to work for us or against us.  Unfortunately, the monetary system , low interest rates and the electronic way of using money produces a malfunction in our brains of which corporations are looking to exploit every day!

The Banking Trap™:

The Banking Trap™ is designed on purpose by our banks.  They want you to keep money in your bank account so that you don't pay down your debts as aggressively as you might if the structure was different.  Take Australia for example.  Australians have come to be known for a mortgage product called an "all-in-one" or "The Australian Mortgage". 

These products allow a consumer to borrow money, but then use it as a bank account in order to pre-pay the debt by using the money that would be sitting in a bank account to pay down the mortgage instead.  They allow the consumer to easily access this money if they need it, but also allow the money to pay down debt and, therefore, not incur interest charges while they don't need the money. 

Basically, the consumer borrows when they actually need the money and don't borrow when they don't need it.  In North America, we are borrowing all the time until we feel we don't need the money by keeping money in our separate bank accounts!  Of course we're told that we can put lump sum payments on our debts, but because we have so much money going in our bank accounts and various debits coming out at all days of the month, how could we possibly put extra against our debt and not cause a cheque to bounce?  This is the affect of what we like to call The Banking Trap™.  Once you understand that banks have designed the products to prevent you from getting ahead sooner than you could if the structure was different, you can restructure so that YOU benefit from cash flow efficiencies and accelerated debt repayment.

When you become a client of The Ornato Group, we strategically help you assess where you are, where you are going, and what needs to happen to get there using a unique process called The Smart Debt Plan™.  We customize a debt plan to help you understand that the monetary system creates a cycle of perpetual borrowing ON PURPOSE (just look at those bank profits).  We educate you about the broken banking structure you are in that is known as your bank account; finally, we help you restructure so that you maximize your own cash flow and organize your finances so that you have a plan to pay down your debt in a confident, non-guilty way.

We offer the following Financial Coaching Programs to help you become DEBT FREE sooner!

(call us at 1.866.265.1219 ext. 1 to learn more)

The Smart Debt Plan™

The Mortgage Secret™

Pre-Approval 101™

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