Buying A Home, The 30,000 Foot View

Diane Buchanan • March 14, 2018

Did you know that the average Canadian will spend roughly 11 months actively engaged in the house buying process? However, most of the dreaming (and preparation) happens before then. Buying a home is a big deal, and it’s a decision that shouldn’t be taken lightly. With all the recent changes by the Canadian government tightening mortgage qualification, you can never be too prepared! 

Even if you don’t plan to buy for a couple years, there is only so far general information can take you. Each person is different, as are their financial situations. So if you’d like to discuss your personal financial situation, feel free to contact me anytime. I would love to work with you!

With that said, here is a 30,000 foot view of what you need to know about buying a home, as it relates to mortgage financing. 

Are You Credit Worthy?

First things first, do you have a good credit? Having good credit is of paramount importance when applying for a mortgage. Establishing a good credit score takes some time, most lenders want to see that you have managed your credit well over a minimum of a 2 year period. 

Even if you have a huge downpayment and manage your money perfectly, and the idea of debt disgusts you, having an established history of borrowing and repaying money is crucial. It’s really hard to get mortgage financing without a credit history. 

How Will You Repay Your Mortgage?

If a lender is going to lend you money to buy a property, they are going to want to know you have the means to pay them back. They want to know that you have a steady job, and will make you prove it through documentation. Depending on how you get paid, lenders will want to see an employment letter, pay stubs, your T1Generals, Notice of Assessments, and really anything else they feel gives them an accurate picture of how much money you make!

Do You Have A Downpayment?

In order to borrow money from a financial institution, you’re going to have to bring some money to the table. Of course the best downpayment comes from an accumulation of your own resources, but there are other sources of downpayment that are available to you. A 5% downpayment will be the bare minimum required, and depending on the purchase price, it might be more. 

It’s important to know that you will have to prove the source of all downpayment funds. This can typically be done through 90 days of bank statements. The lenders (and government) want to ensure that you aren’t purchasing the property with the proceeds of crime, and laundering money. Just know that there will be heavy scrutiny on where you got your downpayment. 

As houses become more expensive, a lot of parents have decided to help their kids with the purchase of a property by gifting downpayment funds for a downpayment.

How Much Can you Afford?

What you can afford on paper and what you can afford in real life are often very different. The amount you qualify to borrow is based on way too many things to include in a single article. And the rules keep changing. Most recently, the government has introduced a financial “stress test” that forces buyers to qualify at a mortgage rate that is at least 2% higher than the rate they will pay. 

So once you are ready to actually start shopping, or even months before then, it’s a good idea to sit down with an independent mortgage professional who can work through your unique financial situation and will let you know exactly what you can afford to spend on a property. 

Regardless of where you are in the home buying process, it’s never too early to give me a call! My goal is to walk you through the process from start to finish, even if that is a matter of years, instead of months. Contact me anytime, I’d love to work with you!

DIANE BUCHANAN
 Mortgage Broker

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Fixed vs. Variable Mortgage Rates in Canada

By Diane Buchanan • March 4, 2026
Fixed vs. Variable Rate Mortgages: Which One Fits Your Life? Whether you’re buying your first home, refinancing your current mortgage, or approaching renewal, one big decision stands in your way: fixed or variable rate? It’s a question many homeowners wrestle with—and the right answer depends on your goals, lifestyle, and risk tolerance. Let’s break down the key differences so you can move forward with confidence. Fixed Rate: Stability & Predictability A fixed-rate mortgage offers one major advantage: peace of mind . Your interest rate stays the same for the entire term—usually five years—regardless of what happens in the broader economy. Pros: Your monthly payment never changes during the term. Ideal if you value budgeting certainty. Shields you from rate increases. Cons: Fixed rates are usually higher than variable rates at the outset. Penalties for breaking your mortgage early can be steep , thanks to something called the Interest Rate Differential (IRD) —a complex and often costly formula used by lenders. In fact, IRD penalties have been known to reach up to 4.5% of your mortgage balance in some cases. That’s a lot to pay if you need to move, refinance, or restructure your mortgage before the end of your term. Variable Rate: Flexibility & Potential Savings With a variable-rate mortgage , your interest rate moves with the market—specifically, it adjusts based on changes to the lender’s prime rate. For example, if your mortgage is set at Prime minus 0.50% and prime is 6.00% , your rate would be 5.50% . If prime increases or decreases, your mortgage rate will change too. Pros: Typically starts out lower than a fixed rate. Penalties are simpler and smaller —usually just three months’ interest (often 2–2.5 mortgage payments). Historically, many Canadians have paid less overall interest with a variable mortgage. Cons: Your payment could increase if rates rise. Not ideal if rate fluctuations keep you up at night. The Penalty Factor: Why It Matters More Than You Think One of the biggest surprises for homeowners is the cost of breaking a mortgage early —something nearly 6 out of 10 Canadians do before their term ends. Fixed Rate = Unpredictable, potentially high penalty (IRD) Variable Rate = Predictable, usually lower penalty (3 months’ interest) Even if you don’t plan to break your mortgage, life happens—career changes, family needs, or new opportunities could shift your path. So, Which One is Best? There’s no one-size-fits-all answer. A fixed rate might be perfect for someone who wants stable budgeting and plans to stay put for years. A variable rate might work better for someone who’s financially flexible and open to market changes—or who may need to exit their mortgage early. Ultimately, the best mortgage is the one that fits your goals and your reality —not just what the bank recommends. Let's Find the Right Fit Choosing between fixed and variable isn’t just about numbers—it’s about understanding your needs, your future plans, and how much financial flexibility you want. Let’s sit down and walk through your options together. I’ll help you make an informed, confident choice—no guesswork required.

Is Refinancing Your Mortgage a Good Way to Consolidate Debt?

By Diane Buchanan • February 25, 2026
If you're a homeowner juggling multiple debts, you're not alone. Credit cards, car loans, lines of credit—it can feel like you’re paying out in every direction with no end in sight. But what if there was a smarter way to handle it? Good news: there is. And it starts with your home. Use the Equity You’ve Built to Lighten the Load Every mortgage payment you make, every bit your home appreciates—you're building equity. And that equity can be a powerful financial tool. Instead of letting high-interest debts drain your income, you can leverage your home’s equity to combine and simplify what you owe into one manageable, lower-interest payment. What Does That Look Like? This strategy is called debt consolidation , and there are a few ways to do it: Refinance your existing mortgage Access a Home Equity Line of Credit (HELOC) Take out a second mortgage Each option has its own pros and cons, and the right one depends on your situation. That’s where I come in—we’ll look at the numbers together and choose the best path forward. What Can You Consolidate? You can roll most types of consumer debt into your mortgage, including: Credit cards Personal loans Payday loans Car loans Unsecured lines of credit Student loans These types of debts often come with sky-high interest rates. When you consolidate them into a mortgage—secured by your home—you can typically access much lower rates, freeing up cash flow and reducing financial stress. Why This Works Debt consolidation through your mortgage offers: Lower interest rates (often significantly lower than credit cards or payday loans) One simple monthly payment Potential for faster repayment Improved cash flow And if your mortgage allows prepayment privileges—like lump-sum payments or increased monthly payments—those features can help you pay everything off even faster. Smart Strategy, Not Just a Quick Fix This isn’t just about lowering your monthly bills (although that’s a major perk). It’s about restructuring your finances in a way that’s sustainable, efficient, and empowering. Instead of feeling like you're constantly catching up, you can create a plan to move forward with confidence—and even start saving again. Here’s What the Process Looks Like: Review your current debts and cash flow Assess how much equity you’ve built in your home Explore consolidation options that fit your goals Create a personalized plan to streamline your payments and reduce overall costs Ready to Regain Control? If your debts are holding you back and you're ready to use the equity you've worked hard to build, let's talk. There’s no pressure—just a practical conversation about your options and how to move toward a more flexible, debt-free future. Reach out today. I’m here to help you make the most of what you already have.