Could You Benefit from a Spring Mortgage Checkup?
Tanya Toye • April 17, 2025
Spring is in the air! This fresh new season creates a sense of hope for the warmer weather to come. And while you’ve likely begun spring cleaning your home and airing it out after it has been closed up all winter, it’s also important to dust off your mortgage contract every year to ensure you’re saving as much money as possible.
A lot can change over the course of your mortgage term, including your income, debt load and even interest rates.
You annual mortgage review should take a look at your mortgage features and how you’re using them, and include an evaluation of your personal and financial situation to ensure they’re still compatible. Spring is also a popular time for homeowners to begin tackling your renovation project to-do list, and deciding how you plan to finance these renos.
Here’s a quick list of what to review during your annual checkup:
- Assess your financial goals. Life changes, such as a new job or growing family, can impact your financial situation. A review can help ensure your mortgage still aligns with your goals as they evolve
- Look for savings opportunities. Reviewing your mortgage features can identify any opportunities to save, such as switching to a better product or reducing your monthly payment
- Consider debt consolidation. If you’re managing multiple debts, such as credit cards, car loans and credit lines, a mortgage review could help you explore the option of consolidating high-interest debts, using your home equity to lower your monthly costs
- Evaluate current interest rates. Mortgage rates often fluctuate. A review can help you determine if refinancing or switching to a new product could lower your rate and save you money
Have questions about your mortgage options or wish to book a free review to see if your mortgage is still right for you? I’m here to help: 604-788-8693 |
tanya@tanyatoye.ca
If you’re new to managing personal finance and you want to learn about credit, you’ve come to the right place. Establishing new credit is a bit of a catch-22. To build a credit history, you need credit. But it’s hard to get credit without having a credit history. So, where do you start? Well, the first thing you should know is that building credit takes time. It’s not something that happens overnight. If you’re looking to secure mortgage financing, you will want to have a minimum of two trade lines (credit cards, loans, or lines of credit) with a minimum limit of $2500, reporting for at least two years. If you don’t have any credit yet, the best time to get started is right now. However, that may be difficult because, as we've already identified, without a credit history, most lenders won’t feel confident about taking a chance on you. What’s the solution? Consider a secured credit card. With a secured credit card, you make a deposit upfront that matches the amount you want to borrow. A reasonable amount would be $1000 deposited on a single secured credit card. You then use your secured credit card to make household purchases and regular utility payments, paying off the total balance each month. If you default on the money borrowed for whatever reason, the lender will retain the money you put up as collateral. When looking for a secured credit card, be sure to ask whether they report to the two nationwide credit bureaus, Equifax and TransUnion. If the credit card company doesn't report, the credit card account will be useless for your purposes; move on until you find a company that reports to both credit bureaus. Once your secured credit card begins reporting to the credit bureaus, you begin to have a credit score; usually, this takes about three months. Now you can start to seek out a second trade line in the form of an unsecured credit card. Don’t forget to ensure that this card reports to both of the credit reporting agencies. Another option at this point could be a car loan. From here, you simply want to make all your payments on time! But what happens if you’re looking to secure mortgage financing before you have a fully established credit report? Well, if you have someone who would consider co-signing, you can certainly go that route. The mortgage application will depend on their income and credit report, but your name will be on the mortgage. Hopefully, when the mortgage is up for renewal, you’ll have the established credit required to remove them from the mortgage and qualify on your own. Although establishing credit takes a minimum of two years, it really begins with putting together a plan. If you’d like to discuss anything credit or mortgage-related, please get in touch!
There’s promising news out of Ottawa for first-time homebuyers that could significantly reduce the cost of getting into the housing market when purchasing a newly built or substantially renovated home. On May 27 th , the federal government proposed legislation to provide GST relief on new home purchases for first time buyers: A full rebate on purchases of up to $1 million and a partial rebate on homes between $1Million and $1.5Million. The proposal still needs to be passed by parliament, but this change could translate into savings of up to $50,000, making a big difference in both the short- and long-term homeownership affordability. In today’s high-price environment, first-time buyers often struggle to save the required down payment while also qualifying for a large enough mortgage. By removing or reducing the 5% GST on qualifying new builds and substantially renovated properties, this policy eases some of that financial burden. A recent report from Desjardins Economics shows these savings are more than just hypothetical. A first-time buyer purchasing a new home at the $1 million mark (inclusive of tax) could see a reduction of around $240 on their monthly mortgage payments. This money could then be redirected toward savings, home improvements or simply making life more manageable. Plus, with the tax removed, the required down payment is also slightly lower, which helps ease upfront costs. Maximizing support for first-time homebuyers For parents helping children buy their first home – whether through gifting the down payment or co-signing a mortgage – this change presents an opportunity to maximize that support. A lower purchase price and more affordable carrying costs make it easier for younger buyers toqualify for financing and remain financially stable after closing day. If you’re considering buying a newly built or substantially renovated home, now is a great time to talk to your mortgage broker about how this GST rebate could impact your mortgage strategy – and your bottom line. Have questions about your first-time homebuyer mortgage options or wish to book a free review to see if your mortgage is still right for you? I’m here to help: 604-788-8693 | tanya@tanyatoye.ca
