It's worth it to work with a trusted mortgage broker

Tracy Head • November 21, 2022

Last week I ran into a situation with clients who didn’t understand what they were signing. The fallout has been expensive for them.

The clients are selling a home in Toronto and moving to the Okanagan for a well-deserved retirement. They both grew up in B.C. and knew they wanted to move back at some point. They came out for an exploratory trip and found a patio home in Osoyoos that checked all their boxes.


They wrote an offer with a fairly standard two-week financing subject clause but they did not add a clause to make the offer subject to the sale of their home in Toronto.


They went home to Toronto and lined up financing with their bank, including a provision for bridge financing in case the sale of their home did not close before their purchase was scheduled to close. They listed their home for sale the first day they were back in Toronto. Two weeks flew by with a few viewings but no offers on their home.


In the meantime, a backup offer came in on the home in Osoyoos. My clients still had six weeks before they were supposed to close on the new home. They asked their realtor in Ontario how likely it was that their home would sell in the next few weeks. He told them it would absolutely sell, no concerns whatsoever.


And he said even if it didn’t sell, their would be options for financing.


Based on their realtor’s confidence, they removed the subject to financing clause and went firm on their purchase in the Okanagan.

One week went by. Two weeks went by. Three weeks went by.


Fast forward to 10 days before closing on their new home. Crickets. Not so much as an offer, even a lowball offer, for them to consider.


They called their bank and asked what to do to line up alternative financing. The bank sent them to a broker in Ontario who reached out to me. Based on their circumstances and the tight turnaround time, their options were limited. Most private lenders prefer larger centres and many private lenders are tapped out right now as more and more clients have had to go the private route.


After an incredibly hectic and stressful week, the clients did complete the purchase on their new home.


I mentioned at the beginning of the story that this was an expensive journey for the clients. Due to the request being so last-minute, the private lender that did provide an approval and charged an extra fee for the rush. The lawyers charged almost double for the rush. The clients now have a $3,500 a month payment on the new home, plus the mortgage payment on their current home until the current home sells. At minimum, this cost the clients more than $40,000, an amount that could have been avoided.

Over the last few years, rolling the dice on selling a home would still have been a dicey move but odds were in the sellers’ favour that their home would sell, usually quickly and often with multiple offers.With the rapid increase in interest rates however, the market has definitely cooled, making this a very risky proposition.


In previous columns I’ve talked about investors choosing to walk away from properties, and risk being sued as they felt that would be less of a hit than moving forward with a purchase where the value of the property had dropped so much. In this case, I truly feel the clients did not understand the implications of their decision to go firm without a sale in the works.


If you are considering making a move now (or ever), I cannot stress enough the importance of working with a mortgage professional that you trust. Try your best to take the emotion out of the home-buying process and consider the possible consequences if you move forward without a firm sale in place.


There will always be other homes. Losing a significant chunk of the money you have worked hard for can really put a dent in your pocketbook.


Make sure you have someone who you trust to help guide you through the process.

Tracy Head

Mortgage Broker

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Purchase Plus Improvements

By Tracy Head • March 19, 2026
Hammer, Nails… and a Mortgage That Sees Potential Over the years I’ve noticed a pattern: buyers fall into two camps. The “this house is perfect” crowd… and the “this could be perfect if we just fix a few things” crowd. Today, we’re talking about the second group—and one of the most underused tools in the Canadian mortgage world: the purchase plus improvements mortgage. What Is It (and Why Should You Care)? A purchase plus improvements mortgage lets you roll renovation costs into your mortgage at the time of purchase. Instead of draining your savings—or worse, putting renovations on a high-interest line of credit—you finance those upgrades at your mortgage rate. In plain English: you buy the house and fix it up, all in one tidy package. You get to enjoy the renovations while you live in your home, rather than scrambling to renovate or update when you are getting ready to sell. Lenders like this because you're increasing the value of the home. You should like it because you're borrowing at (usually) the cheapest rate you'll ever get. Let’s say you’ve found a home priced at $700,000. It’s solid—but a little tired. You want to: Upgrade a dated bathroom Replace an aging furnace Put on a new roof Total improvement budget: $40,000 With a purchase plus improvements mortgage, your financing is based on the “as-improved” value, meaning: Purchase price: $700,000 Improvements: $40,000 Total financed value: $740,000 Because the purchase price exceeds $500,000, the minimum down payment in Canada is not 5% flat. It’s calculated as: 5% on the first $500,000 = $25,000 10% on the remaining $240,000 = $20,000 Minimum required down payment: $49,000 Mortgage Before Insurance Total value: $740,000 Down payment: $49,000 Base mortgage: $691,000 Adding the CMHC Insurance Premium Because your down payment is under 20%, mortgage default insurance applies. At this loan-to-value (roughly 93.4%), the CMHC premium is 4%. CMHC premium: $691,000 × 4% ≈ $27,640 This premium is typically added to the mortgage, not paid upfront. Total mortgage after insurance: ≈ $712,421 What Does That Payment Look Like? Now let’s plug that into real numbers: Mortgage: $712,421 Rate: 3.99% Amortization: 25 years Estimated monthly payment: ≈ $3,750–$3,760/month (call it $3,755/month for coffee-shop accuracy). Why This Still Makes Sense Here’s where people sometimes hesitate: “Wait—I’m paying insurance and financing renovations?” Yes. And in most cases, it still works in your favour. Because: You’re financing renovations at 3.99%, not 8–10%+ You’re improving the home’s value immediately You’re avoiding the markup baked into fully renovated homes In other words, you’re not just spending money—you’re strategically improving the value of your new home. How It Actually Works Behind the Scenes Here’s the part most buyers don’t realize: You submit quotes for the renovations upfront The lender approves the total (purchase + improvements) The purchase closes as usual The renovation funds are held back by your lawyer You complete the work Funds are released once the work is verified It’s a bit of paperwork—but compared to juggling contractors and separate financing? It’s a win. Why I Recommend This More Often Than You’d Think After years in this business, I can tell you this - the “perfect home” usually comes with a premium price tag. But the “almost perfect” home? That’s where the opportunity is. With a purchase plus improvements mortgage, you can sometimes: Buy in a better neighborhood Customize the home to your taste Avoid bidding wars on fully renovated properties Finance upgrades at mortgage rates (instead of 8–10%+ elsewhere) If you’re considering this route, here’s my advice: Get detailed quotes (not ballpark guesses) Plan for a buffer—renovations love surprises Work with a broker early (this is not a last-minute add-on) And most importantly: don’t be scared of a home that needs work. Some of the best purchases I’ve seen over the years started with the phrase, “Well… it’s not perfect, but…” Final Thought A purchase plus improvements mortgage isn’t just financing—it’s strategy. It’s the difference between settling for someone else’s vision… and building your own, from day one.  And in a market like Canada’s, that kind of flexibility isn’t just nice to have—it’s powerful.

So Your Mortgage Is Approved

By Tracy Head • March 6, 2026
So Your Mortgage Is Approved… Now Don’t Break It By the time a buyer gets the call that their mortgage has been approved, the reaction is usually somewhere between relief and a sudden urge to celebrate like they’ve just won the Stanley Cup. After weeks of paperwork, bank statements, document requests, and answering questions about that mysterious $73 e-transfer from your cousin, you’ve made it to the home stretch. But here’s the thing many buyers don’t realize: a mortgage approval isn’t the finish line. It’s more like the last lap before the ribbon. And in this final stretch, there are a few things that can still trip you up if you’re not careful. As a mortgage broker who has watched this happen more times than I care to admit, allow me to offer a friendly list of things you absolutely should not do between mortgage approval and possession day. 1. Do Not Finance a New Car (Even If It Smells Amazing) You might think, “What better way to celebrate a new house than with a new truck in the driveway?” The lender disagrees. Taking on new debt before your mortgage funds can change your debt ratios, which were carefully calculated to get you approved in the first place. I once had a client proudly tell me about the brand-new SUV they bought the week before closing. Unfortunately, the lender was less impressed. Celebrate later. The house comes first. The new car can wait. 2. Do Not Quit Your Job to ‘Follow Your Passion’ I’m a big supporter of people chasing their dreams. But if your dream involves leaving your stable salaried position to start a kombucha brewing company three days before your mortgage funds… perhaps give that dream a couple more weeks. Lenders like stability. A sudden career change can send underwriting departments into mild panic mode. 3. Do Not Open New Credit Cards for Furniture, Appliances, or “Just in Case” It’s very tempting. You walk into a furniture store, see the perfect sectional, and suddenly there’s a cheerful salesperson offering “12 months no payments!” It sounds harmless, but that new credit line can affect your credit score and your debt calculations. Also, you may be shocked to learn this: the house will still accept furniture purchases after you own it. 4. Do Not Move Money Around Like You’re Running an Offshore Hedge Fund During the mortgage process, lenders carefully verify where your down payment and funds are coming from. If large, unexplained deposits suddenly start bouncing between accounts, it can raise questions. Questions lead to paperwork. Paperwork leads to stress. Stress leads to calling your mortgage broker at 9:45 p.m. Keep things simple and predictable until the deal is done. 5. Do Not Co-Sign a Loan for Someone Else You may be the generous type. A friend or family member might ask you to co-sign for a car or a line of credit. As noble as that is, lenders will treat that new obligation as your debt too. Even if your cousin promises they’ll “definitely make the payments.” Your lender prefers promises backed by math. 6. Do Not Miss Any Bill Payments Your credit report was likely pulled during the approval process, and lenders sometimes check again before funding the mortgage. A missed payment can ding your credit score at the worst possible moment. In other words, now is the time to be the most financially responsible version of yourself. The Bottom Line Once your mortgage is approved, the best strategy is surprisingly simple: keep everything exactly the same until your home officially closes. Same job. Same credit habits. Same bank accounts. Think of it like carrying a tray of drinks across a crowded room. You’re almost there—now is not the time to start dancing. The good news? Once the keys are in your hand and the deal is finalized, you’re free to celebrate however you like. Buy the couch. Paint the walls. Host the housewarming party.  Just maybe hold off on the kombucha startup for a week or two.