Melissa Thimot Real Estate

Scan the internet and social media and you won’t find a shortage of mortgage brokers sharing stories of what not to do when buying a home, or how a $1,500 truck payment can derail your mortgage plans.

Even if you feel confident you can afford both your current expenses and a new mortgage payment, especially if it’s close to what you’re already paying in rent, lenders see things differently. 

When it comes to qualifying for a mortgage, lenders look beyond your income, down payment, and current housing costs. They’ll also consider all your monthly debts, such as car loans, student loans, personal loans, credit cards and lines of credit, to ensure you can comfortably handle a mortgage on top of everything else.

Here’s how those non-mortgage expenses can
affect what you qualify for.

Why your debt matters
Every lender uses what’s called a “debt-service ratio” to calculate affordability. This compares your monthly debt payments to your gross income. If too much of your income is already going toward other loans, there’s less left to cover mortgage payments, and that can reduce the size of the mortgage you qualify for.

Car loans and leases
Car payments are one of the most common affordability limiters. A $600 monthly car payment can have a surprisingly large impact, roughly equivalent to $100,000 less mortgage qualification in many cases. If you’re close to buying, it’s worth discussing options to reduce or consolidate this debt first.

Student loans
Even if you’ve deferred your student loans, lenders often include a notional payment in their calculation, typically around 1% of the outstanding balance per month. For example, a $25,000 student loan could add $250 to your monthly debt load, reducing your borrowing power by tens of thousands of dollars.

Credit cards and lines of credit
Even if you don’t carry a large balance, lenders use a minimum payment amount (often 3% of the limit for credit cards or the actual payment amount for lines of credit). For example, a lender will require that a $600 payment is factored in for a $20,000 credit card balance, even if your minimum payment required on your statement is much less.

Paying down balances can make a noticeable difference, but think twice before closing your oldest zero balance credit accounts. Those long-standing accounts help show your credit history and can contribute to a stronger score.

How to strengthen your affordability

• Pay down balances: Reducing your revolving debt lowers your overall monthly obligations and can improve your credit score. 

• Avoid new loans: Taking on a new car or personal loan before applying for a mortgage can hurt your approval.

• Consolidate: If you’re carrying significant debt, an amortizing consolidation loan can reduce your payments and improve your credit.

• Talk to your broker early: A quick affordability check can show how much of a difference paying off or consolidating certain debts can make.

I can walk you through different scenarios; what happens if you pay off that car loan or consolidate credit cards, so you can see how each move affects your approval range. Sometimes small adjustments can make a big difference.

If you’re planning to buy or refinance soon, I’d be happy to help you review your current debts and get you the most suitable mortgage for your situation. 

Let’s connect for a quick chat about your goals and what’s possible for you right now and build a plan that achieves your goals.

Paul Macara
Mortgage Professional
(250) 857-4741
paul@macaramortgages.com

Moving to a new home is an exciting chapter for any family, but it can also be one of the most stressful experiences—especially when you have little ones in tow. The thought of packing up an entire household, managing the logistics, and keeping everything running smoothly can feel overwhelming. But with a little planning and the right approach, your move can be much more manageable and even fun!

If you’re a family or a first-time homebuyer gearing up for a big move, don’t worry—we’ve got you covered. Here are some essential moving tips for families that will help you stay organized, minimize stress, and make the process as smooth as possible.

1. Start Planning Early

When you’re moving with kids, time is your best friend. The earlier you begin planning, the less rushed and chaotic the move will feel. Ideally, start packing a few weeks before your moving day. Begin by sorting through your belongings and deciding what to keep, donate, or throw away. This is the perfect time to declutter and get rid of items you no longer need.

Create a moving checklist with tasks broken down into manageable steps. Don’t forget to include setting up utilities, transferring mail, and finding a moving company or rental truck.

2. Get the Kids Involved (In Age-Appropriate Ways)

Moving can be a lot for kids to handle, but involving them in the process can help them feel more in control and excited about the move. Depending on their age, there are different ways they can help out.

For younger children, give them simple tasks like sorting through their toys or packing their books. Older kids can help by packing their own clothes or even organizing their room. You can also encourage them to decorate their moving boxes or make a special moving-day playlist. The key is to make it a fun and inclusive process!

3. Create a Family Moving Kit

With so much to pack, it's easy to forget the essential items you’ll need right away. Put together a family moving kit with everything you’ll need for the first day or two in your new home. This kit should include:

- Clothes for the next few days (for each family member)

- Toiletries (toothbrushes, toothpaste, soap, etc.)

- Snacks and drinks for the move

- Important documents (passports, ID, school records, etc.)

- Favorite toys or comfort items for kids

- Cleaning supplies (for a quick clean-up in the new home)

Having this kit easily accessible will save you from rummaging through boxes when you need something quickly.

4. Label Everything

Labeling your boxes is crucial, especially when you have kids. You’ll want to make it easy to unpack, especially when it comes to essentials like bedding, clothes, and toys. Use color-coded labels or clear markers to indicate which boxes belong in which rooms. For example, label your child's box with a picture of their room (if they’re too young to read) or use a different color for each child’s belongings.

Be as specific as possible on the labels so that unpacking will be a breeze. Write down exactly what’s inside each box (e.g., "Living Room: Books and DVDs"), and keep an inventory list of everything that’s packed.

5. Hire Professional Movers (If You Can)

While DIY moves can save money, hiring professional movers can make the process much easier—especially when you have kids to worry about. Movers can handle heavy lifting, packing fragile items, and ensuring everything arrives safely at your new home. This can free up your time to focus on your family, rather than trying to coordinate the move on your own.

If you do decide to hire movers, make sure to get quotes from several companies, check reviews, and ask for recommendations from friends or family. A reliable moving company can reduce stress and ensure your move goes smoothly.

6. Pack an Essentials Bag for Each Family Member

In addition to your family moving kit, packing a personal essentials bag for each family member is a great way to stay organized. This bag should include anything each person might need in the first 24 hours—clothes, toiletries, medications, a phone charger, and any personal comfort items like a favorite blanket or stuffed animal.

For your kids, this is also a great time to let them pick out a few “special” items to carry with them during the move—something they can cling to during a big transition.

7. Set Up the Kids' Rooms First

Once you arrive at your new home, prioritize setting up your kids’ rooms first. Having their space organized and familiar will give them a sense of stability and comfort in the midst of all the change. Start by unpacking their toys, setting up the bed, and placing favorite books or decor on shelves.

If possible, involve them in arranging their room in a way that makes it feel like their own. This gives them a sense of control and ownership over their new space, which can make the transition easier.

8. Prepare for the First Night in Your New Home

The first night in your new home is a big deal for your family. To help ease the transition, make sure the bedrooms are ready for sleeping, and that everyone has their favorite blankets and pillows. Have a fun family dinner together to celebrate the move, even if it’s something simple like take-out or a quick meal you can prepare ahead of time.

Consider making the night special with a family movie or a storytime, helping everyone feel comfortable in their new surroundings.

9. Keep a Positive Attitude

Moving with kids can be unpredictable, and things may not always go according to plan. But maintaining a positive, patient attitude will set the tone for your family. Children can pick up on stress, so try to stay calm and upbeat during the process.

If things get overwhelming, take breaks, grab a snack, and remember that this is an exciting new chapter. The boxes will eventually get unpacked, and before you know it, you’ll be settling into your beautiful new home.

10. Explore Your New Neighborhood Together

Once the move is complete and you’ve settled in, take the time to explore your new neighborhood as a family. Go for a walk, visit a nearby park, or stop by a local café. Meeting new neighbors and discovering local attractions will help your family feel connected and at home.

Moving with a family doesn’t have to be a stressful experience. By starting early, staying organized, and getting everyone involved, you can make the process smoother and more enjoyable for everyone. And remember—this is the beginning of a new adventure, and soon enough, your family will be making memories in your beautiful new home.

If you need any help with your home search or moving process, don’t hesitate to reach out! I’m here to help guide you every step of the way.

If it feels like the cost of homeownership has crept up faster than your paycheque, you’re not alone. Many households’ budgets are feeling the squeeze across Canada. For many families, the challenge isn’t just keeping up with their rent or mortgage — it’s keeping up with everything else. The good news is there are ways to regain some control.

Smart budgeting moves 

A budget isn’t about cutting out all the fun, it’s about seeing where your money goes and making choices that keep you ahead. Whether you’re feeling the pinch or saving for a down payment, try tracking your spending for a month or two. Many people are surprised at how much slips away on small recurring costs like subscriptions, coffee runs or take-out. Once you see it clearly, it’s easier to make changes without feeling deprived.

Another common surprise is irregular bills. Annual tax bills, insurance renewals and home and auto repairs don’t come every month, but they can throw you off track if you’re not ready for them. Breaking them into monthly amounts and setting that money aside can make a big difference for budgeting.

You can also chip away at utilities. A programmable thermostat, LED bulbs and sealing drafty windows are simple steps that lower bills. Some provinces and municipalities even offer rebates for energy-efficient upgrades.

Having an emergency buffer, even a small one, helps avoid relying on credit when unexpected expenses pop up. And if you’re carrying balances on high-interest credit cards, tackling those first should be a top priority.

Using your home equity

While saving for a down payment can be challenging for those dreaming of home ownership, many homeowners are feeling the pressure of keeping up with their mortgage and household expenses. The rising costs of consumer debt is making many Canadians feel like they just can’t get ahead. If you’ve built up equity in your property, you may be able to re-amortize or consolidate that debt into your mortgage or a secured line of credit.

Doing so can be a sigh of relief for your monthly budget by lowering your monthly payments and freeing up cash flow, since mortgage and secured line rates are usually much lower than credit card or personal loan rates. But it’s not a decision to take lightly. Rolling consumer debt into your mortgage can mean paying it off over a longer period, which may cost more in the end if you’re not careful.

Think of it as a reset button. It can simplify your payments and buy you breathing room, but it only works if you commit to avoiding the same debt cycle again. Timing also matters, since current interest rates play a big role in whether this strategy makes sense.

The bottom line

Rising costs are a reality, but there are a number of tools to help manage them. A refreshed budget can create meaningful relief, and if you’ve built up some equity but are feeling stretched, there may be options to create some relief. Every situation is different, and that’s where I can help.

If you’d like to talk through your budget or review an equity strategy that could ease your financial stress, reach out anytime. I’d be happy to walk you through the options and help you find what works best for you.

Paul Macara
Mortgage Professional
(250) 857-4741
paul@macaramortgages.com