Emotional Mortgaging

Tracy Head • May 19, 2023

For the last few months I have felt a bit of a return to normal in the mortgage world. Fixed rates have

been trending down and we’ve seen some great rate specials available. More importantly, it has felt like a more balanced market where people are taking a bit more time to do their due diligence and make more educated and thoughtful (as opposed to emotional / panicked) decisions about their home

purchases.


The last few weeks I’ve felt a subtle shift. The housing market is starting to heat up a little, in that I’ve seen a few situations where there are multiple competing offers. Inventory still seems a little low which is likely fuelling  this. I have been dealing with two families that have taken completely different approaches. The first family is looking to right-size their home and move from a condo to a single family home. They already have two littles and a third on the way. They are wanting more space and a better neighbourhood to raise their children in.


They wrote an offer on a lovely home before they looked into their mortgage options. They came to me with an accepted offer and are madly in love with the home they wrote the offer on. They are willing to move heaven and earth to make it happen. The challenge is that they have not had an offer on their condo yet. They both make great income and have investments that will cover the necessary down payment. The trick is that if they have haven’t sold and have to move forward with their purchase they will have to use a private lender to make it happen because their ratios are too high carrying both properties.


Two years ago I might not have been so concerned but with the market being a bit slower there is

significant risk that their condo might not sell in the time frame they need it to.


If this happens and they choose to go the private lender route, they are looking at roughly $20,000 in

fees and closing costs and an interest rate of ten per cent. Monthly payments are $4400.00. They will not be able to rent out their condo because of restrictions in their strata. With strata, property taxes, and their mortgage payment they are looking at about $2600.00 per month. If they end up having to carry both of the mortgages for more than a few months they are going to burn through their savings very quickly. They may end up having to drop the price of the condo significantly which means they might take a loss on the condo as their mortgage balance is close to the break even mark after realtor fees.


They are determined to move forward regardless and quite honestly it concerns me. Another family I am working with has taken a different view. Similar situation and they can more than cover both mortgages if they have to. They have done a very thoughtful analysis of their finances and lifestyle and have taken the approach that it will all come together if it is meant to, and that if their current home doesn’t sell they will not put themselves in jeopardy to buy this particular home.


This approach makes me much more comfortable. What is the danger in the first situation? If for some reason they do move forward and their condo doesn’t sell for several months I don’t think they will be able to afford the payments on both homes. If they fall behind they will have no buffer left and could potentially end up in foreclosure. Maybe it doesn’t get that drastic, but the stress of carrying both properties will be overwhelming.


Before you write an offer on a home, I cannot stress how important it is to connect with a mortgage

professional to get your financial ducks in a row. Knowing what you qualify for (and if you qualify for

that matter) and the costs of making a move will help set you up for success.

There is often a way to arrange temporary financing to cover both homes, but the big question is does it make sense to move forward if you are madly in love with the home? Only you can make that decision.

Tracy Head

Mortgage Broker

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Refinance to Consolidate debt

By Tracy Head • May 30, 2026
When Debt Keeps You Up at Night, Your Home Equity May Offer a Way Forward As a mortgage broker, I’ve sat across the table from hundreds of Canadians carrying more stress than they let on. Sometimes it starts with a few credit cards after the holidays. Sometimes it’s a line of credit that slowly grows over time. Other times it’s unexpected life events — job loss, divorce, rising grocery bills, helping adult children, or simply trying to keep up in an increasingly expensive world. What many people don’t realize is how common this has become. There is often a quiet sense of shame attached to consumer debt. People feel embarrassed admitting they’re struggling, especially if they’ve always been financially responsible. I regularly hear clients say things like, “I never thought I’d be in this position,” or “I feel like I’ve failed.” But needing help does not mean you’ve failed. It means you’re human. One of the most effective tools available to homeowners is refinancing a mortgage to consolidate high-interest debt. By using equity in the home to pay off credit cards, personal loans, or lines of credit, many Canadians are able to dramatically lower their monthly payments and finally breathe again. The financial math is straightforward. Credit cards often carry interest rates around 20 percent or higher. Mortgage rates are typically much lower. Rolling multiple high-interest debts into one manageable mortgage payment can free up monthly cash flow and reduce financial pressure almost immediately. But the emotional impact is often even more important.  I’ve watched clients physically relax during meetings once they realize there is a realistic path forward. Instead of juggling minimum payments and watching balances barely move, they regain a sense of control. They sleep better. Relationships improve. The constant anxiety starts to ease. The key, however, is timing. Too many people wait until they are already in serious financial trouble before exploring refinancing options. They drain savings, miss payments, max out credit cards, or fall behind on bills while hoping things will somehow improve on their own. Unfortunately, once credit scores begin to drop significantly, refinancing becomes more difficult and more expensive. That’s why I encourage homeowners to have the conversation early — before missed payments happen, not after. A strong credit profile gives borrowers more options, better rates, and greater flexibility. Waiting too long can limit those choices considerably. Seeking advice early is not a sign of weakness; it’s smart financial planning. It’s also important to understand that refinancing should not be viewed as a “last resort.” In many cases, it is simply strategic debt management. Business owners do it. Professionals do it. Young families do it. Retirees do it. Millions of Canadians have used the equity in their homes to simplify their finances and regain stability. Of course, refinancing is not a magic solution. It works best when paired with honest budgeting and a commitment to avoiding the same debt cycle moving forward. But for many homeowners, it can provide the reset they desperately need. If you are losing sleep over debt, know this: you are far from alone, and there are often more options available than you think. The hardest part is usually making the first phone call.

Importance of a PreApproval

By Tracy Head • May 16, 2026
There’s a moment I see all the time in this business. A buyer walks into an open house “just to look,” falls completely in love with the place, and by supper time they’re talking about writing an offer. It’s exciting. It’s emotional. And sometimes, it’s exactly where people get themselves into trouble. I can tell you one of the smartest things a buyer can do before house hunting is get a proper mortgage pre-approval in place. Not the casual “I think we qualify for around this amount” conversation. I mean an actual reviewed pre-approval with income, down payment, credit, and monthly budget all looked at carefully. Because once you’re standing in someone else’s dream kitchen imagining where your coffee maker will go, logic has a funny way of leaving the building. A pre-approval does a few very important things. First, it tells you what a lender is likely willing to lend you. That sounds obvious, but many buyers are shocked to discover that what they want to spend and what the bank is comfortable approving are two very different numbers. Second, it helps you shop with confidence. In competitive markets, sellers take pre-approved buyers much more seriously. A seller who has two similar offers in front of them will almost always feel more comfortable with the buyer who already has financing lined up. But here’s the part I think matters even more — a pre-approval gives you the chance to figure out what home ownership will actually feel like every month. And this is where many people make a mistake. They focus only on the mortgage payment. The mortgage payment is important, of course, but it’s only one piece of the puzzle. Before writing an offer, buyers should sit down and calculate the total monthly cost of the home. That means including: Mortgage payment Property taxes City utilities Home insurance Strata fees, if applicable Heating costs Potential maintenance expenses Because the difference between “technically approved” and “comfortably affordable” can be huge. Let’s use a simple example. Suppose you purchase a home for $650,000 with a reasonable down payment. At current interest rates, your mortgage payment might land somewhere around $3,100 per month. At first glance, that may seem manageable. But then we add: Property taxes: $350/month Utilities: $200/month Home insurance: $140/month Strata fees: $450/month Suddenly the true monthly housing cost is closer to $4,240 per month. That’s a very different conversation. And if you haven’t done those calculations ahead of time, you may find yourself house-rich and lifestyle-poor after possession day. I often tell clients this: your home should support your life, not consume it. You still want room for groceries, kids’ sports, travel, retirement savings, and the occasional dinner out where nobody has to do dishes afterward. Another benefit of getting pre-approved early is discovering issues before they become emergencies. Sometimes we uncover small credit issues, missing documents, or income challenges that can be fixed with a little planning and time. It’s much better to solve those things before you fall in love with a home than three days before financing conditions are due. And please remember — just because a lender says you qualify for a certain amount does not mean you have to spend that much. Some of the happiest homeowners I know bought below their maximum approval and left themselves breathing room financially. Funny enough, those are usually the people sleeping best at night when interest rates rise or life throws a curveball. Buying a home should feel exciting, not terrifying. So before you start measuring living rooms for sectional sofas or debating paint colours, take the time to get a proper pre-approval completed and run the real monthly numbers carefully.  Future-you will be very grateful.