Mortgage Planning for Next Steps

Tracy Head • June 28, 2024

While working with my clients I take the time to understand not only what they are hoping to accomplish right now but also where they see themselves headed in the future.


Why is this important?


Sometimes clients have a short-term goal of getting into the housing market and planning to upgrade within the next few years. Sometimes clients are relocating but are nearing retirement so will be looking to downsize soon. Others may be in it for the long haul – starting their families and buying a home they intend to raise their children in.


Qualifying what comes next to say that the best laid plans can often go awry. Rate is not always the deciding factor. When I am choosing a lender for my clients, knowing what their longer-term plans are may steer me one direction or another.


For example, if I know that my clients may potentially make a move and upsize in the next few years I will most likely choose a lender that has favorable policies around porting their mortgages and that offers a blend and extend option.


If my clients express the intention that they will be downsizing in the next few years, and potentially into an age-restricted complex, I will likely choose a different lender. If my clients feel that they will be staying put for the long haul I may well look at yet a different lender.


Why might I look at one lender over another?


As an example, certain lenders will not offer mortgages in age-restricted complexes. Some lenders have very restrictive policies around how they offer clients the option to port their mortgage from one home to the next.


Lenders can have different geographical lending areas, so we also consider that if a client tells us they may be wanting to move to a more rural area. Some lenders are far more aggressive at renewal with respect to what they will offer their clients in terms of a rate for their next term.


I also consider the client service provided by lenders after the mortgage has been advanced.


There are a few lenders that I will not place clients with because of the experience I or other clients have had with them in the past. These particular lenders often have the lowest of the low rates but in this case you get what you pay for.


In my earlier days brokering I used the tagline “creating clients for life”. That was of course interpreted by some as meaning clients would have mortgages for life – this was not what I meant. The intent behind the phrase was that I aim to build relationships with my clients to make future moves and changes to their mortgages much smoother for them.


Quick reminder: if you haven’t already claimed your Home Owner Grant – do it sooner rather than later!


Happy Canada Day all.

Tracy Head

Mortgage Broker

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Changes Affecting Financing

By Tracy Head • November 14, 2025
I consider myself a lifelong learner, which is part of the reason I love my work. Every day there is something new and exciting to learn, or in some cases re-learn. When I first came back to the mortgage world a more seasoned broker gave me a copy of a handout she used with clients. It talked about the ten most important things NOT to do between removing your financing subject and finalizing the purchase of your home. At the time I remember thinking that the handout sounded patronizing and I assumed clients just understood they shouldn’t do any of the ten things. You know what they say about assuming things. Once or twice my clients have made decisions that have almost jeopardized their financing. The reason this came up for me right now is that I am working my way through a training course which is geared towards helping me re-design my team and my workflow, with the ultimate goal of providing even better support to my clients. One of the changes I am going to implement is adding a list very similar to the original ten things not to do list to my signing packages so that we are all on the same page and avoid any potential challenges down the road. What are the ten things? I won’t go over all of them, but here are a few of the things that have surfaced recently: If you change the closing date on your purchase or if you receive the Notice of Completion on a newly built home, advise your mortgage person right away. Never assume your realtor will do this for you. Do not go out and finance anything without checking with your mortgage person. If you are pushing the upper limit of your buying power even a small loan for furniture might put your financing at risk. Many lenders pull your credit again shortly before your mortgage finalizes. Along the same lines, make sure all of your payments are made on time. Do not co-sign a loan for anyone. Do not quit your job or change employers without talking to your mortgage person ahead of time. Do not spend any of the money you have tucked away for your down payment. If you have money sitting in higher-risk investment better to move them to something more stable in case of market fluctuations. Most people think that once they get the ok to remove their financing subject that their mortgage is a done deal. The small print on every mortgage commitment includes a clause that says something along the lines of “Your financing is based on your current situation. Material changes to your situation prior to the funding of your mortgage may affect your approval.” I’m currently working with a young lady that decided to purchase a boat between the time we had our pre-approval conversation and the day she wrote her offer to purchase. She had decided not to buy a home then found her dream property. We’ve had to look at a few options as the boat payment threw her ratios out of line. She is fortunate that her parents are very supportive and are going to gift her the money to pay off the boat loan, but if she didn’t have that back up plan the new loan would have reduced her borrowing power by over $100,000. The reason I added the comment “without checking with your mortgage person” in the bullets above is that every client’s situation is unique and some of those changes might be just fine. Some might not, and the last thing you want to do is find yourself scrambling to figure out a Plan B shortly before closing.  Best to have the conversation and be certain.

Mortgage Options

By Tracy Head • November 1, 2025
In past columns I’ve covered when no means no and when no means maybe there’s another option. There are many aspects of my work that I love. One is that I learn something new each and every day. No two clients are the same and no two applications are the same. Some are easier than others to put together. Another thing I love is that we have so many options to consider when working on our files. I do find immense satisfaction when I tackle a complicated file and find a great solution for my clients. I am working with an amazing young couple as they build their portfolio of rental properties. They are relatively young but both work incredibly hard and really have their ducks in a row. The plot twist they have is that they both transitioned from salaried positions to being self-employed over the last year. Their credit scores are both in the high 800s (900 is a perfect score), they are both making substantial income, and they have saved over $100,000 for their down payment.  Seems like a slam dunk right? Because they don’t have two years of filed tax returns as self-employed business people our options are a bit limited. There is a program we use in this situation but their scenario does not fit within the guidelines. Their dream home just came on the market so they are wanting to buy and convert their current home to a rental property. This particular home came up in the neighborhood they really want to be in, and homes don’t come up very often. It is immaculate and has a legal suite. They had originally approached their bank and been told it was a hard no. I work with their realtor fairly often and she suggested they give me a call. Within 24 hours we had the approval in place for them. We ended up taking the application to an alternative lender for a two-year term. The interest rate is about .5 per cent higher than a chartered back and there is a 1 per cent fee charged. We weighed out the pros and cons of going this route versus holding off until their next tax returns are filed before purchasing another property. After chatting with their financial advisor and accountant they felt it was worth the slightly higher interest rate to be able to buy the home now. I will say I love straightforward simple applications but in reality those are few and far between. Most of the applications I work on these days seem to have some sort of plot twist like this one so I am very grateful there are so many options available to help clients who may fall a little outside of the standard lending guidelines.