Is a cash-back mortgage right for you?

Tracy Head • October 10, 2022

With rates rising and house prices dropping slowly, I’m finding some clients are having a tougher time qualifying right now.

I feel like I have been saying the same thing for different reasons over the last few years.


A significant number of the clients I work with live in northern B.C. I was chatting with a realtor in Fort St John this week and shared that the challenge finding financing for northern clients is slightly different (sweeping generalization here) than clients in the Okanagan.


I have not done statistical research, so I am speaking based on my experience with my clients in both areas, and my comments don’t apply to clients across the board in either area as there are always exceptions.


In northern B.C., in resource-based communities, I regularly see family incomes of $150,000 or more. In the Okanagan, I see family incomes more in the $75,000 to $90,000 range.


House prices are of course very different in various parts of the province. In Mackenzie, I have clients buying fully renovated family homes with large yards for under $200,000. In Smithers and Fort St John prices run between $400,000 and $500,000 for similar homes.


In the Okanagan. I’m noticing more of price drop but similar homes to what I’ve just described are still well over $700,000.

What evens the playing field is lifestyle choice.


In northern B.C., it’s rare for me to work on an application where the clients don’t own several “toys” (trailers, quads, boats, etc) which usually come with loan payments. Although some clients in the Okanagan also have those items, I find more of my applicants might have a vehicle payment and otherwise limited credit usage.


This week, I’m working with first-time buyers in northern B.C. I took their application and was pleased to see all of their toys but one were owned outright. They did, however, finance a brand-new, shiny pickup truck three months ago to the tune of $80,000, or $1,350 per month.


Then he was offered an amazing opportunity in a different community. They have been saving for a down payment, so have their down payment and closing costs taken care of.


They found a home they love but with the new truck payment and the quad payment their ratios are a little high.


For these clients, we will be working with a lender that offers a cash-back program. They will be getting three per cent of the mortgage balance as cash at the time of closing.That cash will be used to pay off their quad loan. Win-win.


As a rule, I am not a huge fan of cash-back mortgages.


There is one particular chartered bank that really promotes its cash-back option, but if the borrowers need to pay the mortgage out early for any reason (before their initial five-year term is up) they have to repay every single penny of the cash-back funds, regardless of how long they have been paying on the mortgage.


The lender I took these clients to also offers three per cent cash back, and if clients have to pay the mortgage off before the initial five-year term is up, they have to repay a portion of the cash-back funds, but on a sliding scale depending on how long they have had the mortgage.


The key takeaway here is if you are considering a cash-back mortgage program, it is important you understand the fine print. Life happens so a little time researching up front may save aggravation down the road.


For these particular clients the mortgage is the right fit.


If you are looking at applying for a mortgage in the near future, I suggest holding off on any purchases that require financing until you’ve had a chance to work with your mortgage person to see how a new loan payment might affect your borrowing power.

If you’d like to play with numbers to see what you qualify for, and how a potential loan payment might affect your borrowing power, feel free to download the link to My Mortgage Planner.


If you are able to hold off on a purchase until you are into your new home, you will likely find it easier to arrange mortgage financing.


Happy Thanksgiving.

Tracy Head

Mortgage Broker

GET STARTED

Reverse Mortgages

By Tracy Head • February 6, 2026
Reverse Mortgages: A Tool More Canadians Should Understand After years in the mortgage business, I’ve learned that few financial tools are as misunderstood as the reverse mortgage. I’ll admit it upfront: for a long time, even mentioning the words made people tense up. I’d see shoulders tighten, brows furrow, and someone would inevitably say, “Isn’t that how you lose your house?” Let’s clear the air. A reverse mortgage is simply a way for Canadian homeowners aged 55 and over to access some of the equity they’ve built up in their home—without having to sell it or make monthly mortgage payments. For many retirees, that alone is a game changer. Many Canadians I work with are “house rich and cash poor.” They may own a home worth a significant amount, but their retirement income hasn’t kept pace with the rising cost of groceries, utilities, property taxes, or helping adult kids and grandkids. A reverse mortgage can help bridge that gap by turning part of that home equity into tax-free cash. That money can be taken as a lump sum, regular payments, or a combination of both. Some homeowners use it to top up their retirement income. Others use it to pay off an existing mortgage or line of credit, eliminate monthly debt payments, or fund renovations that let them age comfortably in place. I’ve even seen clients use it to cover medical expenses or make their home safer with mobility upgrades. One of the biggest benefits—and one that surprises people—is that you don’t have to make monthly payments. Interest is added to the balance, and the loan is typically repaid when the home is sold or the owner moves out permanently. As long as you keep the home maintained, insured, and pay your property taxes, you remain the owner of your home. Another common concern is inheritance. It’s a fair question. What happens to the house? The reality is this: when the home is eventually sold, the reverse mortgage is paid off, and any remaining equity goes to the homeowner or their estate. These products in Canada are regulated and include safeguards so you’ll never owe more than the fair market value of your home. Are reverse mortgages right for everyone? Absolutely not. They tend to work best for homeowners who plan to stay in their home long term and need access to equity but don’t want the pressure of monthly payments. They’re also something that should be discussed openly with family and reviewed with a qualified professional who understands the fine print. What I always encourage is education—not fear. Too many homeowners dismiss reverse mortgages based on outdated information or horror stories that don’t reflect today’s Canadian market. Like any financial tool, they have pros and cons, but when used appropriately, they can provide flexibility, dignity, and peace of mind in retirement. At the end of the day, retirement isn’t just about numbers on a page. It’s about choices. Staying in the home you love. Reducing financial stress. Enjoying the life you worked so hard to build. For many Canadian homeowners, a reverse mortgage can be one of the tools that helps make that possible. And that’s worth a second look.

Trying to Buy a Home in a Competitive Market

By Tracy Head • January 23, 2026
Trying to Buy a Home in a Competitive Market? You’re Not Imagining Things After years as a mortgage broker, I can tell you this with confidence: buying a home in a competitive market isn’t just hard. It’s emotionally exhausting. I talk to buyers every day who feel like they’re doing everything right. They’ve saved a down payment, checked their credit, talked to a lender, and started house hunting with realistic expectations. And yet, they’re still losing out. Multiple offers. Bidding wars. Homes selling in days — or hours. It can make even the most level-headed buyer question whether homeownership is still within reach. One of the biggest challenges I see is speed . In competitive markets, hesitation can cost you the house. Buyers are often expected to make quick decisions on the largest purchase of their lives, sometimes with limited conditions and tight timelines. That’s a lot of pressure, especially for first-time buyers who are still learning the process as they go. Then there’s the financing side. In a hot market, a strong offer isn’t just about price. It’s about certainty . Sellers want to know the deal will close. That’s why buyers with solid pre-approvals, flexible closing dates, and fewer conditions tend to stand out. Unfortunately, many buyers don’t realize how important this is until they’ve already lost a few bidding wars. Another challenge is expectations versus reality . Online listings and headline prices don’t always tell the full story. I often see buyers fall in love with homes that are priced low to attract attention, only to sell well above asking. That can be discouraging, especially when it happens repeatedly. It’s not that you’re doing something wrong. It’s that the market is playing a different game. Appraisals can also throw a wrench into things. Even if you’re willing to pay more, the lender still needs the property to appraise at or near the purchase price. When prices are rising quickly, appraisals sometimes lag behind the market. That can mean buyers need to come up with extra cash or renegotiate. That’s not a conversation anyone wants after winning a bidding war. And let’s not forget the emotional toll. I’ve seen buyers go from excited to deflated more times than I can count. Losing out on a home — especially one you pictured yourself living in — hurts. Do it three or four times, and it’s easy to feel burnt out or start second-guessing your plans entirely. So what helps? Preparation. Flexibility. And a good team. Getting your financing sorted early — ideally before you start house hunting — gives you clarity and confidence. Understanding your true budget (not just the maximum you qualify for) helps you move decisively when the right home appears. Being open on location, property type, or timing can also make a big difference. Most importantly, remind yourself of this: This market is not a reflection of your worth or your effort. It’s competitive because demand is high and supply is tight. Not because you’re failing. I’ve seen many buyers feel like they’d never catch a break, only to end up in a home they love — sometimes one they hadn’t even considered at first. The path may be longer and bumpier than expected, but with the right guidance and a bit of resilience, it’s still very possible. If there’s one thing I want buyers to know, it’s this: You’re not alone. And you’re not crazy.  This market is tough — but tough doesn’t mean impossible.