Using Your Home Equity to Stay Just a Little Bit Longer

Diane Buchanan • September 18, 2017

Last month, the article “Can’t find the Perfect Property in Your Price Range” was published on the blog, where the purchase plus improvements program was outlined as a way to buy and renovate a property at the same time. If you are looking to buy a new home, but can’t find something you love, this article is certainly worth a read! But what if you don’t want to move? What if you like the place you’re in, but it could use a few upgrades? Well, here are some ways you might be able to stay, just a little bit longer!

Introducing the mortgage refinance, and the refinance plus improvements. Both products allow you to leverage your home equity for home improvements.

Refinance

If your mortgage balance is less than 80% of your property’s value, then assuming you qualify (given the latest changes to mortgage qualification), you can access the equity built up in your home to that 80% level. Lenders will typically ask what the funds are going to be used for, however you won’t have to prove anything after the fact. You should be able to access up to $200,000. Assuming you have the equity, a refinance is a really great way to access funds for various reasons, here are just a few:

Renovate your house
Consolidate your high-interest debts
Help your children pay for education
Top up your investments
Access money for a downpayment on a vacation property
Start a new business (just don’t quit your day job)
… Or any combination of the above

But what happens if you want to do some renovations to your property, but your mortgage balance is more than 80% of your home’s value? That’s where the refinance-plus-improvements comes in.

Refinance-Plus-Improvements

Although guidelines will vary from lender to lender, the refinance-plus-improvements will allow you to access up to 80% of your property’s existing value, plus the cost of the renovations. Most lenders will consider 10% of the initial value of the home, or $40,000, whichever is less, to be included for renovations. So when you take the existing value of your home and add the suggested cost of the renovations, this becomes the improved value. The mortgage is then based on the improved value, instead of your existing value.

However, the catch here is that the renovations have to increase the value of your home accordingly. And the lender wants to ensure that the renovations have been completed, and the value of the property has been increased before they will actually let you have access to the money. So, although the cost of the renovations can be added to the mortgage, it’s your responsibility to pay for the renovations up front, and once the improved value is substantiated by an appraisal, then the funds will be released from the lawyer’s trust account.

Securing a purchase-plus-improvements is certainly a little more tricky than executing on a refinance, but if you don’t have enough equity saved up, this might just be the product that allows you to access your home equity in order to increase the value of your home, and give you a nicer home to live in. Win win.

If you have any questions about either a refinance or a refinance plus improvements, and what each of these would look like given your financial situation, please don’t hesitate to contact me anytime , I’d love to work with you!

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DIANE BUCHANAN
Mortgage Broker

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Smart Strategies to Save for Your Down Payment

By Diane Buchanan • November 26, 2025

How to Start Saving for a Down Payment (Without Overhauling Your Life) Let’s face it—saving money isn’t always easy. Life is expensive, and setting aside extra cash takes discipline and a clear plan. Whether your goal is to buy your first home or make a move to something new, building up a down payment is one of the biggest financial hurdles. The good news? You don’t have to do it alone—and it might be simpler than you think. Step 1: Know Your Numbers Before you can start saving, you need to know where you stand. That means getting clear on two things: how much money you bring in and how much of it is going out. Figure out your monthly income. Use your net (after-tax) income, not your gross. If you’re self-employed or your income fluctuates, take an average over the last few months. Don’t forget to include occasional income like tax returns, bonuses, or government benefits. Track your spending. Go through your last 2–3 months of bank and credit card statements. List out your regular bills (rent, phone, groceries), then your extras (dining out, subscriptions, impulse buys). You might be surprised where your money’s going. This part isn’t always fun—but it’s empowering. You can’t change what you don’t see. Step 2: Create a Plan That Works for You Once you have the full picture, it’s time to make a plan. The basic formula for saving is simple: Spend less than you earn. Save the difference. But in real life, it’s more about small adjustments than major sacrifices. Cut what doesn’t matter. Cancel unused subscriptions or set a dining-out limit. Automate your savings. Set up a separate “down payment” account and auto-transfer money on payday—even if it’s just $50. Find ways to boost your income. Can you pick up a side job, sell unused stuff, or ask for a raise? Consistency matters more than big chunks. Start small and build momentum. Step 3: Think Bigger Than Just Saving A lot of people assume saving for a down payment is the first—and only—step toward buying a home. But there’s more to it. When you apply for a mortgage, lenders look at: Your income Your debt Your credit score Your down payment That means even while you’re saving, you can (and should) be doing things like: Building your credit score Paying down high-interest debt Gathering documents for pre-approval That’s where we come in. Step 4: Get Advice Early Saving up for a home doesn’t have to be a solo mission. In fact, talking to a mortgage professional early in the process can help you avoid missteps and reach your goal faster. We can: Help you calculate how much you actually need to save Offer tips to strengthen your application while you save Explore alternate down payment options (like gifts or programs for first-time buyers) Build a step-by-step plan to get you mortgage-ready Ready to get serious about buying a home? We’d love to help you build a plan that fits your life—and your goals. Reach out anytime for a no-pressure conversation.

How Do You Port a Mortgage?

By Diane Buchanan • November 19, 2025

Porting your mortgage is when you transfer the remainder of your current mortgage term, outstanding principal balance, and interest rate to a new property if you’re selling your existing home and buying a new one. Now, despite what some big banks would lead you to believe, porting your mortgage is not an easy process. It’s not a magic process that guarantees you will qualify to purchase a new property using the mortgage you had on a previous property. In addition to re-qualifying for the mortgage you already have, the lender will also assess the property you’re looking to purchase. Many moving parts come into play. You’re more likely to have significant setbacks throughout the process than you are to execute a flawless port. Here are some of the reasons: You may not qualify for the mortgage Let’s say you’re moving to a new city to take a new job. If you’re relying on porting your mortgage to buy a new property, you’ll have to substantiate your new income. If you’re on probation or changed professions, there’s a chance the lender will decline your application. Porting a mortgage is a lot like qualifying for a new mortgage, just with more conditions. The property you are buying has to be approved So let’s say that your income isn’t an issue and that you qualify for the mortgage. The subject property you want to purchase has to be approved as well. Just because the lender accepted your last property as collateral for the mortgage doesn’t mean the lender will accept the new property. The lender will require an appraisal and scrutinize the condition of the property you’re looking to buy. Property values are rarely the same Chances are, if you’re selling a property and buying a new one, there’ll be some price difference. When looking to port a mortgage, if the new property’s value is higher than your previous property, requiring a higher mortgage amount, you’ll most likely have to take a blended rate on the new money, which could increase your payment. If the property value is considerably less, you might incur a penalty to reduce the total mortgage amount. You still need a downpayment Porting a mortgage isn’t just a simple case of swapping one property for another while keeping the same mortgage. You’re still required to come up with a downpayment on the new property. You’ll most likely have to pay a penalty Most lenders will charge the total discharge penalty when you sell your property and take it from the sale proceeds. The penalty is then refunded when you execute the port and purchase the new property. So if you are relying on the proceeds of sale to come up with your downpayment, you might have to make other arrangements. Timelines rarely work out When assessing the housing market, It’s usually a buyer’s market or a seller’s market, not both at the same time. So although you may be able to sell your property overnight, you might not be able to find a suitable property to buy. Alternatively, you may be able to find many suitable properties to purchase while your house sits on the market with no showings. And, chances are, when you end up selling your property and find a new property to buy, the closing dates rarely match up perfectly. Different lenders have different port periods Understanding that different lenders have different port periods is where the fine print in the mortgage documents comes into play. Did you know that depending on the lender, the time you have to port your mortgage can range from one day to six months? So if it’s one day, your lawyer will have to close both the sale of your property and the purchase of your new property on the same day, or the port won’t work. Or, with a more extended port period, you run the risk of selling your house with the intention of porting the mortgage, only to not be able to find a suitable property to buy. So while the idea of porting your mortgage can seem like a good idea, and it might even make sense if you have a low rate that you want to carry over to a property of similar value, it’s always a good idea to get professional mortgage advice and look at all your options. While porting your mortgage is a nice feature to have because it provides you with options, please understand that it is not a guarantee that you’ll be able to swap out properties and keep making the same payments. There’s a lot to know. If you’re looking to sell your existing property and buy a new one, please connect anytime. It would be a pleasure to walk you through the process and help you consider all your options, including a port if that makes the most sense!