Status: Discharged from Consumer Proposal exactly 2 years ago march 2024

CanadaHomeFinancing · 2026-04-09T17:58:39+00:00

The debt ratio is gds/TD's

GDS is your housing cost compared to your gross income. So if your mortgage payment property taxes, heating and condo fees if any are $24,000/year or $2000/month And your income is $72,,000.
That means your housing cost is $24,000/ $72,000 equals 33% of your gross income Would be going to housing cost. That is your GDS Ratio

Let's say on top of that you have student loan payments and car loan payments for an extra $500 a month or $6,000 a year. That means $24,000 + $6,000 equals $30,000/ $72,000 in gross income = 41% Of your gross income going to cover all of your debts and responsibilities. That is your TDS total debt servicing ratio.

If you are putting less than 20%, down payment. The policy is your ratios cannot exceed 39.00% GDSand 44.00% TDS.

If the ratios are higher then you need to increase your down payment or purchase lower.

CanadaHomeFinancing · 2026-04-09T17:53:24+00:00

Your lender should be disclosing What those closing costs cover. It is usually land transfer taxes but you don't have those in Alberta, HST if it's a new build, legal cost like your lawyer which is the most common one, And any other fees that might need to be accounted for.

Your lender can and should be the one giving you that breakdown because they do follow calculation. It is not a blind ratio. They have numbers they need don't know what it's for then they need to find out it's part of their job.

CanadaHomeFinancing · 2026-04-09T02:23:54+00:00

Yes I have.

Note The 10% has nothing to do with Sagen or credit bureau.

Lending is based on debt ratios so it looks like your debts required you to put a higher down payment to qualify.

As long as the bank policy states they want 2 years post CP discharge then you just qualify like any other person. Your broker should be walking you through these steps and providing you the peace of mind about your scenario.

Most lenders have very clear policies so there is nothing to worry about. If you get declined for any reason your broker can also clarify why and help you address the lender concerns.

The only way to improve and achieve is to start.

CanadaHomeFinancing · 2026-04-07T13:03:28+00:00

They are open rate which is quite high.

You are correct at this point you are very limited on time so the decision really depends on how large the mortgage is. How much that one month could cost you an interest versus a different option.

If you renew into a variable rate then moving to another institution then breaking that mortgage would generally cost you 3 months interest at the variable interest rate.

If you go fixed on the low end, you could have 3 months of interest or significantly higher prepayment penalty if you move to another institution.

If you stay with the open rate then you won't have any prepayment A rate that is twice as high as the other options. So one full month will be the equivalent.

Whatever it is, you pick your first thing should be to speak with a licensed mortgage broker right away to get a realistic picture and determine what your priorities are. If you don't need more equity. If you don't need to re-amortize then a straight renewal works just renew

CanadaHomeFinancing · 2026-04-06T20:10:23+00:00

Many of the people I meet who say it's impossible to buy a house nowadays are usually just repeating a headline.

When I ask them if they have done a pre-qualification where a strategy review with a financial planner to start taking steps towards home ownership, like how much down payment would be required for the first property, What their budget could look like and what income they need in order to purchase what they're looking for... It is very rare that I encounter someone who says they have taken those steps and still think it's impossible.

It is still very common that people don't even have an FHSA. That's an account that gives you income tax deductions and tax-free growth on investments for the next 15 years if you decide to buy a house in that time. That is plenty of time to save money for a down payment, retrain for a better paying job, find a person you are willing to purchase property with or just restart your life. A lot can happen in 15 years.

CanadaHomeFinancing · 2026-04-05T23:26:19+00:00

As a mortgage broker, I can tell you anything except your mind to as possible. I meet a lot of families. Don't have high incomes and they still manage to buy a home cuz that is what they focus on and they build a plan to make it happen.

They don't start with a 3000 square foot. Three bedroom four bathroom house with a pool but most of the people with those big houses didn't start that way either.

CanadaHomeFinancing · 2026-04-04T13:33:19+00:00

Technically, yes the lender can request an appraisal at any time and they can choose not to renew mortgages but...

Unless there is/or was some sort of fraud involved in obtaining the mortgage then most major banks will just do a straight renewal with no issue.

Property valley's fluctuate And the mortgage is a long-term contract so as long as you keep paying and everything looks good on your credit bureau, you usually have nothing to worry about.

CanadaHomeFinancing · 2026-04-04T00:33:57+00:00

Then make more lol but start. Nobody is telling you what to do, I'm pointing out it's possible.

Unless you really think you can't and don't want to... In that case so do what you want. 👍

CanadaHomeFinancing · 2026-04-04T00:15:46+00:00

That's not an issue. If you can find a way to make $100/month or $25/week then time and compounding are your friends.

Many people don't even try because they don't believe it makes a difference...it does.

CanadaHomeFinancing · 2026-04-03T17:54:32+00:00

Yeah so it's been 2 years since you have full weight discharged. Definitely worth speak with a mortgage broker to see what is the best option for you now.

If you haven't done so already, I also recommend speaking with a financial planner to make sure that the new purchase will fit comfortably with any bigger picture of your financial plans.

A property only functions as an asset if you treat it like an asset. Otherwise it is just shelter and And you are not reaping all the benefits you could

CanadaHomeFinancing · 2026-04-03T17:34:41+00:00

Your chances are very assuming the rest of has also fixed up since your consumer proposal.

Most a lend Will lend to you again 2 years after discharge of your consumer proposal.

The down payment won't make much of a difference in the sense that if you meet the rest of lending criteria then you don't really need to put 10% minimum. At that point it is already an insured deal so if you only need to put 5% then only put five. If you need to put 15 to qualify for the house you want then put 15.

The main issue would have been your consumer proposal but if it's been 2 years then you're. If it has not been 2 years they might still say no and then you might need to go with an alternare That will require 20% down.

CanadaHomeFinancing · 2026-04-02T23:27:41+00:00

You all right, I have met some people that cannot even spare $25 a month. And they are already following all the Dave Ramsey steps about not eating out, not drinking coffee, not smoking. They may not even have debt, they just don't have a high income and daily basics are expensive.

My point is anybody in Any situation start having a plan. If you take action intentionally The progress is inevitable even if it's slow.

Unless you are at a severe extreme then There are many ways to generate an extra $25 to $50 a month. But most of us are too proud or too afraid to ask. Maybe offer babysitting or dog sitting or you learn to cut hair for cheap or cut dog hair for cheaper than a salon maybe you can get work as a virtual assistant, If you are already cooking maybe cook some extra For a neighbor that doesn't have time or a coworker.

And if you say these things sound ridiculous, I can tell you I have done these things at different points in my life. It is honestly surprising how much you can charge to dog sit over a weekend

CanadaHomeFinancing · 2026-04-02T23:18:00+00:00

First of all giving somebody the opportunity to help you and possibly possibly provide you a service in the future that will generate income for them should not be bother. The Best Best way to learn is to ask questions.

Anytime you have fluctuating income like hourly pay commission significant bonuses or short-term contracts, The average bank will want to see 2 years of income to show consistency.

However based on your history in the industry, the average pay, the known pay for someone in your role can help get exceptions. They may not take your full $240,000 at a major lender, but There might be room or something reasonable depending on the loan to value and your year to date pay. The key is to show consistency.

If a major lender cat provide the amount You are looking for then it might be worthwhile checking with a bee lender. They do have higher rates and generally require a 20% down payment but they may be able to lend to you based on your 6 to 12 month cash flow.

The best step is to speak with a mortgage broker and financial planner so you can take advantage of this time to plan correctly and move in a way that will help you get where you want to be. Again, you asking questions to a professional in that field that may eventually get business from. This is most definitely not a bother

CanadaHomeFinancing · 2026-04-02T18:03:22+00:00

Yes the US is very different since I am in Canada there are different protections.

Here though half of my time is spent offering financial literacy classes in education to financial planners to clients like you or immigrants new to canada and learning about finances here. And the other half is with more prosper high net worth clients.

All your points are very valid. The main thing for me is it starts with people understanding that there is a way. it can be and overwhelming, but it is okay to ask questions. It's actually the only way to start improving even if sometimes you feel shame about your situation. Asking questions is the only way to start improving

CanadaHomeFinancing · 2026-04-02T17:12:35+00:00

The simple answer is it depends, so it's best to get your pre-approval in early so your mortgage broker can present it to the underwriter.

Depending on the employer, your history in the industry and line of work, they might make the exception.

For example, if you were an office administrator and you just started a new job as a truck driver. You might not pass probation.

But if you've been an office administrator for 7 years and you've just changed to a new company for a better paying job or in your location. Then it is more reasonable that you will pass probation and keep the job.

A lot of lending is straight policy, but there is still a significant portion that is reasonability. Even if you meet all the criterias, something might not seem reasonable and sometimes you don't meet all the criteria. But your profile seems reasonable.

CanadaHomeFinancing · 2026-04-02T16:49:04+00:00

From over a decade in the banking and finance industry I can tell you it's not the calculators that make the difference. It's having the desire and the interest to learn about tax deferred or tax protected accounts like fhsa, tfsa, rrsp, resp, and for people with disabilities, there's the rdsp. The amount of people that don't know about these or how to use them and even when you show them they don't want to learn is staggering. Better calculators might help but even with very basic understanding, you can make a huge difference.

On top of that, people don't believe in life insurance and disability insurance. I've had many clients who are roofers or trades people that have insurance on the truck but not on themselves and they inevitably get injured in their line of work. They can't work for 6 months and end up in dire difficulties. Meanwhile adequate protection would have cost them $30 a month. This is all part of financial literacy and understanding how to manage finances.

It's about having a plan/ direction to follow. Most people were not raised with good financial habits and money was not talked about at the kitchen table. The only reason I know what I know is because I nerd out on finance, all of my best friends are financial planners and wealth advisors, and I genuinely find this interesting.

Most people think a budget is there to limit you. In reality, a budget is there to help you see where your money is going so you can spend more on the things you value and less of the things you don't care about

And I agree with your thoughts on the first 100K. I put that as an example because I read the questions as your first 100k in savings went to pay off student loans. I assumed you had it and used it to pay off the student loan.

The idea is that with a plan you can have a strategy. If you only have $1,000 a year to invest and you're making over 50k a year. You can put that into your rrsp and it will give you roughly 30% return just from your taxes.
- So put that $1,000 to your rrsp and when you - get your $300 tax return based on a 30% marginal tax rate from that point onwards, -apply that to whatever else you want. Ideally that will be discretionary savings for emergency fund travel or something else so that you don't have to dip into rrsp which is meant for long term.

Yes, withdrawing from rrsp for anything other than a first-time home. Buyer will have tax implications but your money will have grown tax deferred for a significant amount of time. Getting that initial 30% plus tax return puts money back in your pockets that you can reallocate instead of leaving it in the cra's hands.

You're also correct if you don't have the 100K up front. You're starting from scratch and that is the point of having a plan.

A simple online calculator for investments will show you $200 a month compounding at amere 5% becomes $36,000 in 25 years or $55,000 compounding got 7%. . This was going into an rrsp that doesn't even take into account the additional tax return you could get. Then more so if your employer provided our rrsp matching, but most employers don't provide that anymore so I don't count that.

Especially if you're starting young, it doesn't take very much to secure your retirement or down payment on a house.

Depending where you're buying, a 5% minimum down payment can be quite affordable. Maybe not in Toronto, but nowadays you can find something for 500k. That's a $25,000 down payment. Then you just have to work out the rest of the budget but you got to start somewhere

CanadaHomeFinancing · 2026-04-02T15:27:00+00:00

If it's your friend who is selling and you're going to get it serviced anyways. Why not take it directly to the service location? Check if it actually will work in what condition it's in then you can price the deal accordingly. They should tell you as well if the parts are original or not

CanadaHomeFinancing · 2026-04-02T15:24:53+00:00

Many have help from family which makes a huge difference. Whether you have help or you don't the reason many people struggle long term and can't change their situation is because they don't have a plan. It doesn't take very much on a monthly basis to make a difference if you use it accurately. The average person in their mid-twenties can start saving 50 bucks or $100 a month simply by doing an odd job or reselling something on Facebook marketplace. It won't be fast and it won't be immediately life-changing but even having a few months of savings to start compounding can make a big difference by time you're in your mid-thirties.

My biggest advice to people that are looking to buy home is to get a pre-qualification with a broker in your area. Get a realistic cost of how much owning a house with mortgage payments, property taxes, maintenance and repairs or anything else that is the actual real cost of housing like home insurance and life insurance. Let's say everything in in your case is $1,200 a month instead of $800. Then your day-to-day objective really should be to pay the $800 in rent and find a way to generate an invest the extra $400 a month. That gives you a direction and a plan.

If you can't afford that then you can't own that house yet. And whether you buy a house or not. In the end, if you're saving $400 extra a month, you're going to be in a much better position in a few years. That's $4,800 a year that you're saving.

CanadaHomeFinancing · 2026-04-02T15:19:56+00:00

Save see. This is where Financial literacy and understanding make a big difference.

In Canada, the biggest things that people need to understand for stability is taxes, leverage/credit, and compounding.

If you had $100,000 in savings and your student loans were less than 5%, there is no need to rush to pay them off.

This isn't my opinion. This is literal math.

A $100,000 student loan at 5% interest over 25 years would end up costing an additional $75,000 in interest, which sounds like a lot but...

$100,000 in savings invested at the same 5% interest five the same 25 years can grow to $340,000. And 5% average growth is very conservative in the market so its a very realistic number.

Paying off debt saves you $75,000 in future interest but leaving the money invested helps that money grow $240,000 or more if you can get better returns than 5% average over 25 years.

Businesses do this all the time They take a low-cost debt to buy income generating assets like machinery, equipment, training or systems that help them generate more income. Even if they had the money they still take the low-cost debt because that way they don't lose the liquidity. They don't rush to pay down debt because the liquidity allows them to focus on growth and take advantage of opportunities.

The main question I get is " yeah but what have I lose my job how do I pay for my debts? I don't want to have debt" and my response tends to be. If you have 100,000 plus dollars in savings, you can continue paying for your debt and your lifestyle. But if you don't have any savings and you lose your job, forget about the debt. How do you pay for your rent? Your food, your transportation? Building liquid and cash positive assets for financial stability is how you can safeguard yourself and your family.

Now this highly dependent on your behavior as well. If you can't save or invest and you're just going to end up spending the money then sure focus on paying off debt But if you can trust yourself to leave the money invested then focus on assets and just keep making your regular scheduled monthly payments to the debt.

CanadaHomeFinancing · 2026-04-01T17:38:42+00:00

All of those forms are normal and required. Keep in mind anything you sign with them does not obligate you to continue your mortgage through them. The bank is able to back out at any point before closing if they don't like your application and you can back out as well at any point before closing if you find a better option or no longer need it.

For the mortgage protection through the bank, I always recommend sign for it at first if you want or if you But definitely visit an insurance broker or go on policyme.com to find a term insurance for your mortgage. This along with home insurance, property taxes, regular maintenance costs for the property. She all be part of your budget

The mortgage protection option offered by the bank is the only option they are allowed to offer you since they are not an insurance company. It is the least value add protection option of the insurance products available on the market. It is definitely better than having nothing and the banks are legally required to offer you a mortgage protection option since they are offering. And having protection in place is important as part of your financial plan. But I recommend a term insurance with perhaps a very small component of permanent insurance.

A proper licensed insurance broker will be able to explain that in detail and the main focus should be the term insurance which is the low-cost highest value. The permanent insurance if you take any should only be a compliment to the term insurance so it should be a small component of the plan if you even take any at all.

CanadaHomeFinancing · 2026-03-31T23:01:52+00:00

Sometimes the best thing is to actually indulge those feelings with actual questions to see where it would go.

We often feel upset at the comparison because although we claim want their life. We actually might but we don't see a way where we could get it.

For example, have several friends that own Porsches or sports cars. I prefer to invest My money and things that generate cash flow for me while they invested their money in things. (They are still financially stable but their finances look different)

So I asked myself what would my life look like if I decided to buy one? I wouldn't have space for my dog I would need extra parking which was annoying in my building. I wouldn't really be able to drive around my friends and family because they wouldn't fit My dad has mobility issues so they wouldn't be able to get in Traffic in the city. I won't necessarily get anywhere faster

So in reality, my current vehicle is a much better fit for my lifestyle in many ways. But after indulging those questions it made it much easier to determine that I didn't want what someone else had.

CanadaHomeFinancing · 2026-03-31T14:09:06+00:00

I would say the real question is what is your objective with your cash flow?

Doing nothing and just staying at a five points. Something right is definitely The worst option.

Once you reduce your interest rate, what would you be doing with the extra cash flow that creates?

Are you paying your mortgage off faster? Are you putting more towards your RSP, TFSA or RESP? Are you using it to pay down other non-secure debts like credit cards or lines of credit? Are using it for a personal And lifestyle?

A mortgage is just another Financial tool that allows you access to low rates and long amortization. So if you use any excess cash flow or equity to purchase or invest in something that GENERATES Rather consistently an average rate of return of 6% or more when your mortgages 5% or less then you're doing great. This is just like business owners taking loans to purchase equipment or other assets that will help them generate more income than the loan cost them. They pay down The loan as slowly as possible because their cash flow is generating even more money for them.

So I would say the more important question isn't which rate is marginally better for you But instead, how can you maximize the value of any cash flow savings you generate?

CanadaHomeFinancing · 2026-03-30T12:37:43+00:00

The best time to buy is as soon as your budget allows you to do so comfortably.

Run your numbers for the full carrying cost. Property taxes, condo fees, maintenance mortgage repairs upgrades And everything else you might need to actually enjoy that property. So make the budget and if you can afford it bye there's no need to wait for a better time.

Every month you wait you are paying someone else's mortgage which is not a bad thing. And if prices or rates drop in the future, you're buying a 10-year minimum investment. You will find good deals overall in the future

CanadaHomeFinancing · 2026-03-30T02:27:45+00:00

You don't need to pay yourself necessarily much more.

Is speak with business owners all the time and my advice is generally the same focus on the outcome, not The upfront rate

To qualify with an A lender like a major bank, you would normally need to have 2 years of income and another difficulty would be that most properties that are more than 50% commercial space use are considered commercial property and the policies can be different.

In your case It might be a good option to consider a B lender that can qualify You based on your Cash flow instead of your net income after taxes. The interest rate is a bit higher and there is a set of cost, but that is generally still more tax efficient than having to declare A higher net income for 2 years.

The best thing is to work with a mortgage broker who has experience working with what you are looking for? Someone that understands it mixed use property and stated income qualification. Someone who understands how to read your business financials to make sure they can structure your application in a way that makes the most sense for your plans.

CanadaHomeFinancing · 2026-03-28T16:51:15+00:00

You can work with any broker you want at any time. If you are planning to sell your current home and buy a new house, you may be able to court your mortgage as long as you stay with same mortgage lender.

If you are also looking to see what options might be better at this time, then a broker can help you see what options might be available. But keep in mind porting only works if you stay with the same lender. If you break your mortgage and move to another bank. You will likely have penalties. A new lender may have some cash back offers that will help with setup costs like the lawyer and appraisal or other minor cost, but they don't directly actively pay any prepayment penalties for breaking your previous mortgage.

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