New Year, New Mortgage

Tracy Head • December 30, 2024

As we close out 2024 and prepare to ring in 2025 today’s column will be short and sweet. Well, short in any case.

I think many of us tough out difficult financial situations until we are through the holidays. We put on a brave face and do our best to make everyone’s holiday season fun and festive.


January hits as does reality when we look at our bills and our account balances.


If you are feeling overwhelmed with your financial commitments and don’t know where to start, a conversation with your mortgage professional might be a good place to start. If you have equity in your home it may make more sense to remortgage and consolidate your consumer debt.


My advice is to try not to do that if you can avoid it, but feeling like you shouldn’t then falling behind with your credit cards and other loans will do more damage to your financial health in the long run.


Credit counselling organizations are already advertising heavily to this target audience. Clients sometimes think (or are led to believe) that this is an easy solution and better for their credit long-term. Not all credit counselling agencies are created equal and I can’t count how many clients are still dealing with the fallout from these arrangements years down the road.



If you have tried to refinance in the past and been told no, it may be worth taking another look at this approach. Lenders change their policies and your situation likely has changed as well.


Going into January can feel a bit heavy after the holiday celebrations and I encourage you to take a close look at your finances and set yourself up for a successful year.

Tracy Head

Mortgage Broker

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Mortgage Timing

By Tracy Head • December 21, 2024
Navigating Bridge Financing When Selling and Buying a Home When clients are selling one home to buy another, realtors strive to align the sale date of the current home with the purchase date of the new one. However, when clients need a few days or even months to transition between homes, bridge financing may be a viable option. What is Bridge Financing? Bridge financing allows clients to buy a new home before selling their current one. Depending on the lender, arranging bridge financing can be straightforward, but not all lenders offer this service. In such cases, private bridge financing might be necessary. Key Considerations Before You Begin Before agreeing on dates with your realtor, it’s crucial to explore your options: Traditional Banks & Monoline Lenders : Bridge financing is usually simple to organize, with an administrative fee (around $250) and daily interest on the borrowed funds. Strategic Timing : In some instances, bridge financing might not be an option, requiring careful coordination of sale and purchase dates. When Bridge Financing Might Not Work Your lender doesn’t offer bridge financing. The cost of bridge financing seems excessive. Your current home is on First Nations land (terms of lease agreements often preclude bridge loans). Private bridge financing costs far outweigh the benefits. Alternative Solutions If bridge financing isn’t feasible, there are alternatives: Shipping Containers : Companies like Securite or Big Steel Box can provide a container for temporary storage. It’s delivered to your home before the sale, stored securely, and then transported to your new home on possession day. This approach might involve a hotel stay or staying with friends or family. For example, a recent cost-benefit analysis showed clients saving approximately $4,500 by opting for a shipping container over private bridge financing—even after accounting for hotel stays and dining out. When Bridge Financing Works For those able to use bridge financing through a monoline lender, the process is simple and cost-effective. One client paid a $250 fee and approximately $650 in interest for a week, giving them the flexibility to clean both homes and move at a relaxed pace. Plan Ahead If you’re planning to have sale and completion dates on different days, consult your mortgage professional before finalizing contract dates.  Thank You for a Wonderful Year As we head into the new year, I want to express my gratitude for your trust and support. Wishing you and your family warmth and happiness in the year ahead!

Making Good Decisions

By Tracy Head • December 13, 2024
Last Minute Mortgages Do your homework. Be prepared. Make good decisions. Don’t gamble on an outcome. Maybe most importantly don’t rush. These are lessons that can be applied to almost every aspect of our lives.  This week I jumped in to help another broker. A client of his had written an offer on a new home priced at $1,000,000. The client’s current home was owned free and clear (no mortgage outstanding) but was worth slightly less than that. The broker had a mortgage arranged to cover the difference between the purchase price and the anticipated sale proceeds of the current home. The client removed all of the subjects on his purchase before his current home was sold – basically rolling the dice and assuming it would sell. I bet you already know where this is going. There is a plot twist though. As it turns out, the other broker is unexpectedly away dealing with a health emergency. The client’s original home has not yet sold. He has to complete the purchase on his new home by the end of next week. We scrambled this week to line up private financing to cover the shortfall needed to complete the purchase of the new home. The broker had urged the client not to remove subjects on the purchase until the other home was sold. I have seen the email. The client decided to move forward regardless. This client is fortunate that he still qualifies for the new mortgage even with the current home not sold. The client will, however, be covering some unanticipated expenses. Between fees for the private loan and additional legal fees the client will be paying over $10,000 at closing on top of the expected closing costs for the purchase. As well, the monthly payment on the private loan is approximately $4500 per month so we are all hoping an offer comes in soon. The thing about houses is that they make them every day. Maybe not everyday but certainly new homes come onto the market all the time. Its hard if you are emotionally attached to the idea of a shiny new home, but I lean to the conservative side and encourage my clients to look at the long term outcome should all the pieces not fall into place. As we move into (what we expect to be) a busy spring market, I encourage you to make thoughtful decisions and not put your financial well-being at risk by jumping into something you shouldn’t.
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