Put Your Mortgage on the Stair Climber
Marci • July 26, 2012
You know that if you want to eat better you need a plan. You look at how you eat now, what you’d like to change and what the results will be.
If you want to better manage your stress, you need a plan. You need to research methods, practice and determine patterns that need to change.
Why would your mortgage be any different?
Here too, you need a plan. You need to assess how your mortgage fits your life and ensure it will work for you in the future.
Giving your mortgage a workout isn’t just for new mortgages. Taking a look is beneficial anytime. When you have all the information on hand, you are more likely to make the right decisions.
One common misconception is that you need to sign and stay with your bank at mortgage renewal. You don’t. Often you can move your mortgage, or at least renegotiate – so long as you have your information up front, you’ll be in control.
At least six months before a mortgage renewal, you should put your mortgage through the paces. A mortgage professional can help you look at your current rate, payment, terms and amortization. With that in mind, I can help you review your goals and life plans.
When do you want the mortgage paid off? Are you closer to maternity leave or an empty nest? Do you see a renovation in your future or perhaps imagine a move to a bigger place?
Yes, it can sound like a lot of work, but it doesn’t need to be.
Whether you choose to review your mortgage with me or another professional, the process of reviewing your goals and dreams in tandem with your mortgage can be easier than you think. Over tea, coffee, or a glass of wine, we can look at your current mortgage to determine if changes are needed or if you’re already on the right track.
Don’t miss the opportunity to give your mortgage a fitness test.
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Buying your first home just got a little easier — and a lot less expensive — thanks to a major new government announcement made on May 27, 2025. If you're thinking about purchasing a newly built home or condo, here's what you need to know (in plain English). What’s the Big Change? The Government of Canada is introducing a new GST rebate just for First-Time Home Buyers (FTHB) : 100% GST rebate on new homes up to $1 million A partial GST rebate for homes between $1 million and $1.5 million No rebate for homes priced $1.5 million or more 💥 Translation: You could save up to $50,000 in taxes on a new build — serious money back in your pocket! What Types of Homes Qualify? The rebate applies to: New homes or condos purchased from a builder Owner-built homes (yep, if you're building yourself!) Co-op housing units (if you're buying shares in a housing co-op) Who Qualifies as a First-Time Buyer? You’re considered a First-Time Home Buyer if: You're 18 or older A Canadian citizen or permanent resident You (or your spouse/common-law partner) haven’t owned a home in the last 4 years — anywhere in the world When Does This Start? To qualify, your purchase contract signed or construction must start on or after May 27, 2025 , and: Construction must begin before 2031 Homes must be substantially completed before 2036 Buyers with contracts signed prior to May 27, 2025 will NOT qualify Some Fine Print You Should Know There are a few limits: You can only claim this once in your lifetime If your spouse or partner already used it , you can’t You won’t qualify if the original agreement to buy was signed before May 27, 2025 (Yes, I already said that but it bears repeating!!) It must be your primary residence Why This Is a Game Changer Let’s be real — saving up for a home is hard enough , especially in today’s market. This new GST rebate is a massive win for first-time buyers and a big push to get more homes built across Canada. ✔️ Less tax ✔️ More homes ✔️ A major step toward affordable ownership 📌 Want the Full Details? You can read the full government announcement right here . Need help understanding this or to get pre-approved, I am here to help. marci@askmarci.ca
Chances are if you’re applying for a mortgage, you feel confident about the state of your current employment or your ability to find a similar position if you need to. However, your actual employment status probably means more to the lender than you might think. You see, to a lender, your employment status is a strong indicator of your employer’s commitment to your continued employment. So, regardless of how you feel about your position, it’s what can be proven on paper that matters most. Let’s walk through some of the common ways lenders can look at employment status. Permanent Employment The gold star of employment. If your employer has made you a permanent employee, it means that your position is as secure as any position can be. When a lender sees permanent status (passed probation), it gives them the confidence that you’re valuable to the company and that they can rely on your income. Probationary Period Despite the quality of your job, if you’ve only been with the company for a short while, you’ll be required to prove that you’ve passed any probationary period. Although most probationary periods are typically 3-6 months, they can be longer. You might now even be aware that you’re under probation. The lender will want to make sure that you’re not under a probationary period because your employment can be terminated without any cause while under probation. Once you’ve made it through your initial evaluation, the lender will be more confident in your employment status. Now, it’s not the length of time with the employer that the lender is scrutinizing; instead, it’s the status of your probation. So if you’ve only been with a company for one month, but you’ve been working with them as a contractor for a few years, and they’re willing to waive the probationary period based on a previous relationship, that should give the lender all the confidence they need. We’ll have to get that documented. Parental Leave Suppose you’re currently on, planning to be on, or just about to be done a parental leave, regardless of the income you’re now collecting, as long as you have an employment letter that outlines your guaranteed return to work position (and date). In that case, you can use your return to work income to qualify on your mortgage application. It’s not the parental leave that the lender has issues with; it’s the ability you have to return to the position you left. Term Contracts Term contracts are hands down the most ambiguous and misunderstood employment status as it’s usually well-qualified and educated individuals who are working excellent jobs with no documented proof of future employment. A term contract indicates that you have a start date and an end date, and you are paid a specific amount for that specified amount of time. Unfortunately, the lack of stability here is not a lot for a lender to go on when evaluating your long-term ability to repay your mortgage. So to qualify income on a term contract, you want to establish the income you’ve received for at least two years. However, sometimes lenders like to see that your contract has been renewed at least once before considering it as income towards your mortgage application. In summary If you’ve recently changed jobs or are thinking about making a career change, and qualifying for a mortgage is on the horizon, or if you have any questions at all, please connect anytime. We can work through the details together and make sure you have a plan in place. It would be a pleasure to work with you!
If you’re new to the home buying process, it’s easy to get confused by some of the terms used. The purpose of this article is to clear up any confusion between the deposit and downpayment. What is a deposit? The deposit is the money included with a purchase contract as a sign of good faith when you offer to purchase a property. It’s the “consideration” that helps make up the contract and binds you to the agreement. Typically, you include a certified cheque or a bank draft that your real estate brokerage holds while negotiations are finalized when you offer to purchase a property. If your offer is accepted, your deposit is held in your Realtor’s trust account. If your offer is accepted and you commit to buying the property, your deposit is transferred to the lawyer’s trust account and included in your downpayment. If you aren’t able to reach an agreement, the deposit is refunded to you. However, if you commit to buying the property and don’t complete the transaction, your deposit could be forfeit to the seller. Your deposit goes ahead of the downpayment but makes up part of the downpayment. The amount you put forward as a deposit when negotiating the terms of a purchase contract is arbitrary, meaning there is no predefined or standard amount. Instead, it’s best to discuss this with your real estate professional as your deposit can be a negotiating factor in and of itself. A larger deposit may give you a better chance of having your offer accepted in a competitive situation. It also puts you on the hook for more if something changes down the line and you cannot complete the purchase. What is a downpayment? Your downpayment refers to the initial payment you make when buying a property through mortgage financing. In Canada, the minimum downpayment amount is 5%, as lenders can only lend up to 95% of the property’s value. Securing mortgage financing with anything less than 20% down is only made possible through mortgage default insurance. You can source your downpayment from your resources, the sale of a property, an RRSP, a gift from a family member, or borrowed funds. Example scenario Let’s say that you are looking to purchase a property worth $400k. You’re planning on making a downpayment of 10% or $40k. When you make the initial offer to buy the property, you put forward $10k as a deposit your real estate brokerage holds in their trust account. If everything checks out with the home inspection and you’re satisfied with financing, you can remove all conditions. Your $10k deposit is transferred to the lawyer’s trust account, where will add the remaining $30k for the downpayment. With your $40k downpayment made, once you sign the mortgage documents and cover the legal and closing costs, the lender will forward the remaining 90% in the form of a mortgage registered to your title, and you have officially purchased the property! If you have any questions about the difference between the deposit and the downpayment or any other mortgage terms, please connect anytime. It would be a pleasure to work with you.
