Selecting the best mortgage for you

Tracy Head • August 30, 2022

I had a call with one of my favorite clients recently. We are working on a refinance and lining it up for when her current mortgage term is set to renew.


We worked through everything and got to the age-old question of whether she wanted to go with a fixed rate or a variable rate.

We chatted about the refinance about two months ago, and at the time I suggested a variable rate mortgage. Her home is on a huge lot in an area of Rutland where developers are buying homes in order to tear them down and build new multi-family complexes.


She has already been approached by a realtor who is representing a developer. The realtor dangled a potential figure in front of her that has her thinking about selling and relocating. To this point, the realtor has not brought her a written offer so she is not sure whether this will actually come to pass.


So, during our call we went over the final details for her approval and circled back to the rate decision. We talked about variable because if the right offer comes along she will sign before the ink is dry. Choosing a variable means she will have a three-month interest penalty to get out of the mortgage, even if the offer comes in the month after we process her refinance.


She did mention that several people she knows went into variable mortgages earlier this spring and are not very happy with their decisions.


We circled back to her situation, and I calculated what a potential penalty might be if she opted for a fixed rate term then decided to sell right away.


Based on today’s rates and her new mortgage balance, the fixed rate mortgage would cost (approximately) an additional $13,000 should she choose to pay the mortgage out in the next few months.That being said, for the amount she stands to gain by selling to a developer, the $13,000 is a drop in the bucket. However, I’d far rather see that money in her pocket if we can make that happen.


Over the last few weeks, I have had calls with many clients asking about what interest rates are doing and in particular how the rate changes are affecting their bottom lines. During all of these calls, we talked about why they chose variable in the first place, and what their future plans are.


Sitting with a variable mortgage can feel a little stressful right now. The key is to remember why you made the decision in the first place. I have seen lenders start to drop their fixed rates over the last few weeks. However, we are still in the position of having reduced borrowing power if you choose a fixed rate term over a variable.


As an example, I’m seeing 4.59% (and lower) for five-year fixed rates on insured mortgages. Using the stress test, that means we need to calculate the payment based on a rate of 6.59%, which means one would qualify for less mortgage than if he or she opted for a variable rate.


The key is to think carefully about your options and your budget. Consider what your longer-term plans are before you sign into a longer fixed-rate term.


Life happens, plans change. Know what your options are and make sure you talk to your mortgage person about what really is the best rate decision for you.

Tracy Head

Mortgage Broker

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Owning vs. Renting: A Broker’s View from the Front Lines

By Tracy Head • May 4, 2026
After a couple of decades in the Canadian mortgage world, I’ve learned that the “rent vs. buy” debate isn’t really about right or wrong—it’s about timing, lifestyle, and how comfortable you are trading flexibility for long-term wealth building. Let’s walk through both sides with some real numbers, because that’s where the story gets interesting. The Case for Buying: Building Equity (and Stability) Let’s assume you purchase a home for $600,000 CAD with a 20% down payment ($120,000), leaving you with a $480,000 mortgage at a 4% interest rate , amortized over 25 years. Monthly mortgage payment: ≈ $2,530 First-year interest portion: roughly $19,000 First-year principal paydown: roughly $11,000 That principal portion is the quiet hero here. Every payment chips away at your loan and builds equity—essentially forced savings. Fast forward 5 years: You’ve paid down roughly $60,000–$70,000 in principal If the home appreciates at a modest 3% annually , your $600,000 home could be worth about $695,000 Your equity position: Original down payment: $120,000 Principal paid: ~$65,000 Appreciation: ~$95,000 Total equity: ~$280,000 That’s a meaningful wealth position built largely through time and discipline. Other advantages: Predictable housing costs (especially with a fixed rate) Protection against rising rents Freedom to renovate and personalize Leverage: you control a $600K asset with $120K down The Reality Check: The Costs of Ownership Owning isn’t just about the mortgage. On that same $600,000 home, you might also be looking at: Property taxes: $3,000–$4,000/year Maintenance: ~1% annually (~$6,000) Insurance: $1,500–$2,000/year So your true monthly cost isn’t $2,530—it’s closer to $3,200–$3,500 when everything’s factored in. And unlike rent, surprises are your responsibility. Roof leaks don’t call the landlord—they call your bank account. The Case for Renting: Flexibility and Liquidity Let’s say a comparable home rents for $2,500/month . Right away, you’re saving: ~$700–$1,000/month compared to owning (after ownership costs) Now here’s where renters can quietly win— if they’re disciplined . Investing the difference: If you invest $800/month at a conservative 5% annual return : After 5 years: ~$54,000 After 10 years: ~$125,000 Add to that your original $120,000 down payment (which you didn’t tie up in real estate), also invested: $120,000 at 5% over 5 years: ~$153,000 Total investment portfolio after 5 years: ~$207,000 That’s not far off the homeowner’s equity position—and it’s far more liquid. The Trade-Offs: It’s Not Just Math Here’s where the decision gets personal. Buying tends to win when: You plan to stay put for 5+ years You want stability and control You’re comfortable with maintenance and unexpected costs You value long-term wealth building through real estate Renting shines when: Your lifestyle or job requires flexibility You prefer predictable monthly costs You’re disciplined about investing savings You’re wary of market fluctuations or high entry prices A Final Thought from the Broker’s Desk I’ve seen clients build substantial wealth through homeownership—and I’ve seen others feel financially stretched because they bought too soon or too much house. On the flip side, I’ve met renters who quietly built six-figure investment portfolios… and others who simply spent the difference. The truth? Both paths can work beautifully—or poorly—depending on behaviour. If you’re buying, do it with a long-term mindset and a financial cushion.  If you’re renting, treat your savings like a mortgage payment to your future self. Either way, the goal isn’t just having a roof over your head—it’s making sure that roof supports the life you actually want to live.

Home Inspections

By Tracy Head • April 16, 2026
Why Skipping the Home Inspection Could Be the Most Expensive Shortcut You Ever Take By the time buyers reach the home purchase stage, they’ve often run an emotional marathon. You’ve found “the one,” navigated offers, and maybe even competed in a multiple-offer situation. At that point, it can feel tempting - almost logical - to waive the home inspection to strengthen your offer. As a mortgage broker who has seen the full lifecycle of homeownership—from eager purchase to unexpected financial strain - I can tell you this: skipping a home inspection is one of the riskiest decisions a buyer can make. A home inspection isn’t just a formality. It’s your one real opportunity to understand what you’re buying beyond the paint colour and staging. The Hidden Stories Behind the Walls Most homes look great on the surface. Fresh paint, modern fixtures, and carefully placed furniture can disguise a long list of underlying issues. A qualified home inspector, however, sees what most of us don’t. Some of the most common—and costly—deficiencies include: Roofing problems : Missing shingles, poor ventilation, or nearing end-of-life materials. A new roof can easily cost $10,000–$25,000. Foundation concerns : Small cracks may seem harmless, but they can indicate structural movement or water intrusion. Outdated electrical systems : Knob-and-tube wiring or aluminum wiring can present both safety hazards and insurance challenges. Plumbing issues : Poly-B piping, slow leaks, or poor drainage can lead to significant water damage over time. Furnace and HVAC wear : A furnace on its last legs might work fine during a showing—but fail in the middle of January. Attic insulation and ventilation : Poor airflow can lead to mold growth or ice damming—issues many buyers never think to check. And then there are the less obvious findings: Improperly installed renovations (that “beautiful” basement suite may not meet code) Grading issues around the home leading to water pooling near the foundation Bathroom fans venting into the attic instead of outside (a mold recipe) Decks or railings that aren’t structurally sound These aren’t just inconveniences—they’re financial commitments waiting to happen. The Domino Effect of Skipping the Inspection What many buyers don’t realize is how quickly these issues can snowball. A small leak becomes mold.  An aging furnace becomes an emergency replacement. A minor foundation crack becomes a major repair. And unlike cosmetic upgrades, these aren’t optional expenses. They demand attention—and often, immediate cash. From a mortgage perspective, this can put real strain on homeowners. I’ve worked with clients who stretched to purchase their home, only to face unexpected repair bills within months. It’s not just stressful - it can impact your ability to manage your mortgage comfortably. Negotiation Power You Don’t Want to Give Up A home inspection isn’t just about identifying problems - it’s a powerful negotiation tool. If issues are discovered, buyers can: Request repairs Negotiate a price reduction Or, in some cases, walk away entirely Without an inspection, you lose that leverage. You’re agreeing to purchase the home “as is” - whether you realize it or not. Peace of Mind Is Worth Something Even in cases where the inspection comes back clean, there’s real value in knowing the condition of your home. You move in with confidence, not crossed fingers. And if issues are identified but manageable, you can plan ahead - budgeting for repairs instead of being blindsided. A Final Thought In competitive markets, I understand the pressure to make your offer as appealing as possible. But there are smarter ways to do that than removing your safety net. A home is likely the largest purchase you’ll ever make. Spending a few hundred dollars on a professional inspection isn’t just wise - it’s essential. Because the truth is, what you don’t know about a home can absolutely cost you. And in this business, I’ve seen that lesson learned the hard way more times than I’d like.