The Budgeting Resource Everyone Has (And Nobody Uses)

Diane Buchanan • October 18, 2016

This article was written by Sandi Martin of Spring Personal Finance and was originally published here on Spring The Blog on Oct. 27th 2015.

Does This Sound Familiar?

You’ve read a book or a blog series or watched a show about budgeting and getting your money under control. You’re all fired up, ready to really get it together, and get to work on that budget. The first few lines are easy:

Monthly net income? Read it off the paycheque, check.

Mortgage payment? Burned in the memory, check. Oh, man. This budgeting stuff is easy.

Groceries? Uh…well, we usually shop once a week (unless we forgot something) and it usually comes in between $120-$180…I’ll put $150.

Clothing? Oh, man. I don’t know, $50? Except in September, when the kids go back to school, and October when their feet maliciously grow and we have to buy new running shoes with only one month until the snow falls…and April, when we realize it’s too warm for winter coats and too cold for sweaters…

Entertainment? Erm…let’s say $10. I dunno, do late charges at the library count?

When the time comes to “stick to the budget” and that budget is just a series of made up numbers, what happens?

Or This?

You take the advice most people are offering about controlling your spending: you begin to track your income. You get a notebook and a pen, and you write down every penny you spend, every day. Until Thursday comes along, and you’re so busy that you just keep the receipts in the book, because you know you’ll have time on Friday and you’ll remember, but Friday becomes Saturday two weeks later, and you’re sitting in front of a pile of little pieces of paper, trying to forensically reconstruct seventeen days of spending and hoping that missing the two pocketfuls of receipts that went through the wash won’t screw you up too much.

Maybe, instead of the notebook or spreadsheet, you signed up for Mint or Quicken or YNAB instead, and you faithfully input or categorize all of your spending for almost a month. And then suddenly your checking account (according to the program) has $1,315.92 in it, when your checking account (according to reality) has $541.01. And you can’t find the mistake.

When your books are a mess and you actually have no idea how closely you’ve been “sticking to the budget”, what happens?

Protip: Use What You Already Have to Start Budgeting Well

Look, these things happen, even to someone who ::cough:: has been tracking her transactions and living on a spending plan for ::coughtenyearscough:: But when one of these is your first experience with the whole budgeting thing, it can very, very easily be your last. Or your last for a while. I truly don’t understand why the inevitable advice for first-timers is always A) write out a budget and/or B) track your spending. The only people who won’t get lost in the land of 78 spending categories and account reconciliation are the ones who probably wouldn’t have needed to read the book or watch the TV show to get themselves organized, and were going to be fine anyway.

The frustration goes away with time and practice, it really does. Any budgeting system will work if you give yourself enough time to learn and adapt to it, honestly. But why go through all the aggravation of trying to live by a guess-timated budget if you don’t have to?

If you’re convinced that some part of budgeting is worth doing, then the first place to start isn’t how you’re going to spend in the future; it’s how you’ve already spent in the past.

You have years worth of data lying dormant in your bank and credit card history as we speak – a complete picture of how you spent your money when you weren’t paying attention, and accessing it is as simple as downloading a good sample size to a spreadsheet, sorting them out, and adding them up.

Easy For Me To Say

This is one of those pieces of advice that could very easily become that “just” advice that I hate so much.

I use spreadsheets every day (and love every minute of it) so this is an easy thing for me to do and recommend. If you don’t speak spreadsheet very fluently, this exercise might be as frustrating as trying to guess how much you’re going to spend on clothes in the next _insert arbitrary period of time here_.

But, like most things prefaced with “just”, it might be worth your time and effort to try. If you have even a passing familiarity with rows, columns, and cells, and know how to use the “sort” function, examining your past spending in aggregate is a good way to set yourself up for success with your future spending .

Why start with a guess when you can start with data?

Note: Some readers have mistakenly read this as a recommendation to use spreadsheets to track ongoing spending, to which I can only say: please don’t use spreadsheets to track your spending unless you’re a confirmed spreadsheet ninja. /PSA

 

DIANE BUCHANAN
 Mortgage Broker

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Home Reno Dreams? Let’s Talk Mortgage Financing

By Diane Buchanan • June 3, 2026
How to Use Your Mortgage to Finance Home Renovations Home renovations can be exciting—but they can also be expensive. Whether you're upgrading your kitchen, finishing the basement, or tackling a much-needed repair, the cost of materials and labour adds up quickly. If you don’t have all the cash on hand, don’t worry. There are smart ways to use mortgage financing to fund your renovation plans without derailing your financial stability. Here are three mortgage-related strategies that can help: 1. Refinancing Your Mortgage If you're already a homeowner, one of the most straightforward ways to access funds for renovations is through a mortgage refinance. This involves breaking your current mortgage and replacing it with a new one that includes the amount you need for your renovations. Key benefits: You can access up to 80% of your home’s appraised value , assuming you qualify. It may be possible to lower your interest rate or reduce your monthly payments. Timing tip: If your mortgage is up for renewal soon, refinancing at that time can help you avoid prepayment penalties. Even mid-term refinancing could make financial sense, depending on your existing rate and your renovation goals. 2. Home Equity Line of Credit (HELOC) If you have significant equity in your home, a Home Equity Line of Credit (HELOC) can offer flexible funding for renovations. A HELOC is a revolving credit line secured against your home, typically at a lower interest rate than unsecured borrowing. Why consider a HELOC? You only pay interest on the amount you use. You can access funds as needed, which is ideal for staged or ongoing renovations. You maintain the terms of your existing mortgage if you don’t want to refinance. Unlike a traditional loan, a HELOC allows you to borrow, repay, and borrow again—similar to how a credit card works, but with much lower rates. 3. Purchase Plus Improvements Mortgage If you're in the market for a new home and find a property that needs some work, a "Purchase Plus Improvements" mortgage could be a great option. This allows you to include renovation costs in your initial mortgage. How it works: The renovation funds are advanced based on a quote and are held in trust until the work is complete. The renovations must add value to the property and meet lender requirements. This type of mortgage lets you start with a home that might be more affordable upfront and customize it to your taste—all while building equity from day one. Final Thoughts Your home is likely your biggest investment, and upgrading it wisely can enhance both your comfort and its value. Mortgage financing can be a powerful tool to fund renovations without tapping into high-interest debt. The right solution depends on your unique financial situation, goals, and timing. Let’s chat about your options, run the numbers, and create a plan that works for you. 📞 Ready to renovate? Connect anytime to get started!

Buying a Vacation Property or Rental? Here’s What Lenders Look For

By Diane Buchanan • May 27, 2026
Owning a vacation home or an investment rental property is a dream for many Canadians. Whether it’s a cottage on the lake for family getaways or a rental unit to generate extra income, real estate can be both a lifestyle choice and a smart financial move. But before you dive in, it’s important to know what lenders look for when financing these types of properties. 1. Down Payment Requirements The biggest difference between buying a primary residence and a vacation or rental property is the down payment. Vacation property (owner-occupied, seasonal, or secondary home): Typically requires at least 5–10% down, depending on the lender and whether the property is winterized and accessible year-round. Rental property: Usually requires a minimum of 20% down. This is because rental income can fluctuate, and lenders want extra security before approving financing. 2. Property Type & Location Not all properties qualify for traditional mortgage financing. Lenders consider: Accessibility : Is the property accessible year-round (roads maintained, utilities available)? Condition : Seasonal or non-winterized cottages may not meet standard lending criteria. Zoning & Use : If it’s a rental, lenders want to ensure it complies with municipal bylaws and zoning regulations. Properties that fall outside these norms may require financing through alternative lenders, often with higher rates but more flexibility. 3. Rental Income Considerations If you’re buying a property with the intent to rent it out, lenders may factor the rental income into your mortgage application. Long-term rentals : Lenders typically accept 50–80% of the expected rental income when calculating your debt-service ratios. Short-term rentals (Airbnb, VRBO, etc.) : Many traditional lenders are cautious about using projected income from short-term rentals. Alternative lenders may be more flexible, depending on the property’s location and your financial profile. 4. Debt-Service Ratios Lenders use your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine if you can handle the mortgage payments alongside your other obligations. With investment or vacation properties, lenders may apply stricter guidelines, especially if your primary residence already carries a large mortgage. 5. Credit & Financial Stability Your credit score, employment history, and overall financial health still matter. Since vacation and rental properties are considered higher risk, lenders want reassurance that you can handle the additional debt—even if rental income fluctuates or the property sits vacant. 6. Insurance Requirements Rental properties often require specialized landlord insurance, and vacation homes may need coverage tailored to seasonal or secondary use. Lenders will want proof of adequate insurance before releasing mortgage funds. The Bottom Line Buying a vacation property or rental can be exciting, but financing these purchases comes with extra rules and considerations. From higher down payments to stricter property requirements, lenders want to be confident that you can handle the responsibility. If you’re considering a second property, the best step is to work with a mortgage professional who can compare lender requirements, outline your options, and find the financing that works best for you. Thinking about making your dream of a vacation or rental property a reality? Connect with us today.