What is Debt Consolidation?

Feeling overwhelmed by multiple bills? Looking for a solution to growing credit card debt? Reduce your debt, restore your credit, and feel relief with a debt consolidation loan. A debt consolidation loan is where a bank, credit union, or finance company provides you with the money to pay off your outstanding debts and "consolidate" them (bring them all together) into one big loan. This usually applies to your unsecured debt, which may include your credit card bills, lines of credit, unsecured loans, or any other debt that doesn’t require collateral, such as a home or car. 

Advantages of a Debt Consolidation Loan

1. You only have one monthly payment to worry about
2. You often consolidate at a lower interest rate, which saves you money
3. Your debt will be paid off in a set amount of time (typically 2 - 5 years)
4. Simple, monthly fund transfers by telephone banking, debit card, or money order
5. Timely, automatic payments to creditors, with full tracking
6. Any fees charged for this service are usually very low

 

Debt Consolidation Loan Interest Rates
Banks and credit unions usually offer the best interest rates for debt consolidation loans. Many factors can help you get a better interest rate with a bank or credit union, including your credit score, your net worth, whether you have a relationship with them, and can offer good security (collateral) for a loan or not. Good security for a debt consolidation loan will often be a newer model vehicle, boat, term deposit (non-RRSP), or another asset that can easily be sold or liquidated by the bank if you don't make your loan payments.

For the past decade, banks have typically charged interest rates on debt consolidation loans of around 7% - 12%. Finance companies tend to charge anywhere from 14% for secured loans to over 3% for unsecured loans.

Disadvantages of a Debt Consolidation Loan

1. They usually require security (collateral)
2. You must have a decent credit score
3. Interest rates are higher than a home equity loan (refinancing your home)
4. Interest rates for unsecured debt consolidation loans can be high

While banks rarely approve unsecured debt consolidation loans, some do get approved from time to time. To qualify for one of these, you would typically need to have a high net worth (the value of your assets after you subtract all of your debts) and a very strong credit score or a co-signer who has a very high net worth and a very strong credit score.

What are your chances of getting a Debt Consolidation Loan?
If your credit score meets the bank's minimum requirement (meaning: not too many late payments or any big negatives on your credit report), you earn enough income, your total monthly minimum debt payments aren't too high, and you can offer some good security for a loan, then you may qualify for a debt consolidation loan. If you don't quite meet all of these requirements on your own, you may still be able to qualify if you can find a good co-signer.

If your minimum monthly debt payments are too high - even after a consolidation loan is factored into the situation, you have bad credit, or you can't offer some reasonable security for a loan, then a consolidation loan probably won't work. 

 

What is Title Insurance And Why You Need It?

Title insurance is an insurance policy that protects you, the homeowner, against challenges to the ownership of your home or from problems related to the title to your home. The policy provides coverage against losses due to title defects, even if the defects existed before you purchased the home. This article will give you some background information about title insurance to help you make an informed decision.

Title to Property
The title is the legal term for ownership of property. Buyers want a "good and marketable" title to a property.  A good title means a title appropriate for the buyer's purposes; a marketable title means a title that the buyer can convey to someone else. Before closing, public records are "searched" to determine the previous owner of the property, as well as prior dealings related to it. The search might reveal, for example, existing mortgages, liens for outstanding taxes, utility charges, etc., registered against the property. At closing, the buyer expects the property to be free of such claims, so normally, they must be cleared up before closing. For example, the seller's mortgage will be discharged, and outstanding monetary expenses (such as taxes and utility charges) will be paid for (or adjusted for) at closing.

Sometimes problems (or defects) regarding the title are not discovered before closing or are not remedied before closing. Such defects can make the property less marketable when the buyer subsequently sells and, depending on the nature of the problem, can also cost money to remedy. For example, the survey might have failed to show that a dock and boathouse built on a river adjoining a vacation property was built without permission. The buyer of the property could be out of pocket if he is later forced to remove the dock and boathouse. Or, the property might have been conveyed to a previous owner fraudulently, in which case there is the risk that the real owner may come forward at some point and demand their rights with respect to the property.

Who is Protected With Title Insurance?
Title insurance policies can be issued in favour of a purchaser (on new/resale homes, condos and vacation properties), a lender, or both the purchaser and lender. Lenders will sometimes require title insurance as a condition of making the loan. Title insurance protects purchasers and/or lenders against loss or damage sustained if a claim that is covered under the terms of the policy is made.

Types of risks that are usually covered under a title insurance policy include survey irregularities; forced removal of existing structures; claims due to fraud, forgery or duress; unregistered easements and rights-of-way; lack of pedestrian or vehicular access to the property; work orders; zoning and setback non-compliance or deficiencies, etc. For a risk to be covered, generally, it has to have existed as of the date of the policy. As with any type of insurance policy, certain types of risks might not be covered; for example, native land claims and environmental hazards are normally excluded. Be sure to discuss with your lawyer what risks are covered and what is excluded.

The insured purchaser is indemnified for actual loss or damage sustained up to the amount of the policy, which is based on the purchase price. As well, some policies have inflation coverage, which means that if the fair market value of the property increases, the policy amount will also increase (up to a set maximum).

How Long is the Insurance Coverage?
In the case of title insurance covering the purchaser, title insurance remains in effect as long as the insured purchaser has title to the land. Some policies also protect those who received the Title as a result of the purchaser's death, or certain family members (e.g., a spouse or children) to whom the property may have been transferred for a nominal consideration.

In the case of title insurance covering a lender, the policy remains in effect as long as the mortgage remains on title. A lender covered under a title insurance policy is insured in the event the lender realizes on its security and suffers actual loss or damage with respect to a risk covered under the policy. Lenders are usually covered up to the principal amount of the mortgage.

The premium for title insurance is paid once (at the time of purchase). Generally speaking, in Canada, the purchaser of the property pays for the title insurance, though there can be situations where the seller pays for it. Some policies automatically cover both the purchaser and lender; others will cover both for a small additional fee.

Protection and Peace of Mind
Title insurance can help ensure that a closing is not delayed due to defects in title. And, if an issue relating to title arises with respect to a risk covered under the policy, the title insurance covers the legal fees and expenses associated with defending the insured's title and pays in the event of a loss.

"Closing" a Real Estate Deal

Congratulations, your offer has been accepted, and you can’t wait to move into your new home. But don’t start celebrating yet. There is one final stage involved in purchasing a home - closing the deal.

Having your offer accepted does not mean the end of your real estate transaction. However, there is still plenty of work that needs to be done to "close the deal." 

Closing involves many complicated and time-consuming legal manoeuvres, which is why you’ve hired professionals. Closing is the point at which ownership and usually possession of the property is transferred from the seller to you. It takes place after the parties involved agree that all legal and financial obligations have been met. Your lawyer and your Realtor will do much of the work for you.

Here is a checklist of what to expect as the process unfolds:
 
Closing Checklist 
• Make sure a copy of the signed Agreement of Purchase and Sale is sent to your lawyer right away. Your Realtor will usually do this for you. Your lawyer needs to see any conditions that exist, and the date you and the seller have agreed to close. The lawyer will ask you how you (and others involved in the purchase) want to be registered on the title to the property.

• Immediately begin satisfying any of the conditions of the agreement that require your action. These have definite dates attached to them, and if you miss one, you may have to arrange an extension or possibly risk losing the entire deal. As each condition is met, the Realtor will fill out a waiver form for signatures. Note that most lawyers won’t be doing many of the tasks they need to do for closing until the conditions are waived.

• After the conditions have been met, your lawyer will begin searching title to the property. This is an exercise of going back through government records to ensure a clear title that is transferable. Electronic registration and title insurance have significantly changed the way titles on properties are transferred.

• If you decide to have the home inspected, your offer should contain a condition that the property passes inspection. If no current land survey exists on the property, arrange for one soon. Your lender may require it, and you’ll want it for your own peace of mind, anyway.

• Before the closing date, contact your insurance agent to arrange homeowner’s insurance coverage to become effective on the date of closing. Your agent can give you a letter certifying that coverage is in place. If you’re moving from your currently owned home to another, your agent will handle the homeowner’s insurance transfer for you.

• Your lawyer will then begin a title search on the property to be sure the seller has a clear title and can transfer it to you without a problem. Hydro, gas and water companies will also be contacted by your lawyer to ensure there are no outstanding claims for unpaid bills before these utilities are transferred to your name.

• Other tasks your lawyer will perform include gathering reports, certificates and clearances from various government offices, ensuring the property taxes are up-to-date, local zoning and building restrictions have been met, and there are no outstanding obligations or "liens" on personal property to be sold with the house. In other words, your lawyer will make sure you get what you agreed to buy.

• Your lawyer will review and verify the draft deed, statement of adjustments and other closing information provided by the seller’s lawyer, and will deal with any problems as they arise. A few days before closing, you will meet with your lawyer to review and sign the closing documents. You will be asked to provide a certified cheque to cover the costs involved. 

On closing day, both lawyers will exchange documents, keys and cheques, and your deed and mortgage will be registered at the local registry office. If all goes according to plan, you will be given the keys to your new home.

Tips For Hosting A Cheerful Party in a Small Space

Living in a tiny space is a challenge in everyday life. Space becomes precious on a whole new level during the holiday season. A small home doesn’t mean you have to ditch the seasonal décor and gathering—you just have to be a little more creative with your space.  Follow these simple steps so you can still pull together a perfect party where guests will embrace the charm of your cozy space.

1. Repurpose what you have
Get creative and uniquely use available space. A kitchen sink filled with ice acts as a cooler when housing beverages, bottles of wine, and carafes. A coffee table becomes a "dining area" when covered with a solid white tablecloth. And guests will appreciate a casual party vibe when they see pillows on the floor encouraging them to kick back and relax.

Keep the kitchen island functional during the holidays. Place a vintage sled in the centre for displaying snacks while keeping the rest of the space around free for preparing meals and cocktails.

2. Take a minimalist approach
An abundance of clutter makes any room feel small and cramped. Less is more, try using simple centrepieces such as one singular flower in lieu of large centrepieces and clean, solid lines compared to loads of patterns.

Swap your tablecloth with a table runner and set out white or ivory candles down its centre. This gives your room interest and texture while making it feel larger.

3. Use a mini tabletop tree
You may not have room for the pine tree of your dreams—but that doesn’t mean you can’t show off your favourite ornaments. Put tiny tabletop surfaces to use by snipping greenery from backyard trees and arranging the stems in a vase. Use the space below the cutting tree to arrange gifts as a tiny alternative to a traditional Christmas tree.

4. Deck out the unexpected
Use the front of your built-ins and bookcases to display holiday decor like wreaths, garland, or tree cuttings. A built-in display case with clear glass fronts creates the perfect backdrop to place a fresh magnolia wreath front and centre.

5. Use the stairs with style
If you've run out of space to keep gifts stacked in your living room, put your stairs to work as gift risers. Simply, keep wrapped gifts piled toward one side of the landing.

6. Add cozy elements
Two other favourite elements that mustn’t be missed: candles and fur. You seriously can’t go wrong with these! Place candles everywhere, preferably in holiday scents of course, and then pile fur blankets wherever there’s room for a cozying up area with loved ones.

7. Make guests move around
With limited seating options, your party’s first arrivals might end up hogging the sofa and dining chairs the whole night, leaving everyone else tired. Instead of offering a sit-down meal, consider drinks and appetizers located in different spots around the space—like a dessert bar or a cheese-and-nuts table—which encourage people to stand up and move around. 

Waterloo Region Home Sales for November 2025

 

WATERLOO REGION, ON (December 4, 2025) —In November, a total of 465 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This represents a 14.8 per cent decrease compared to the same period last year and a decline of nearly 25 per cent compared to the average number of homes sold in the previous ten years for the same month.

“We saw a continued cooling of the housing market in November with sales down nearly 15 percent year-over-year and prices adjusting accordingly,” says Christal Moura, spokesperson for the Waterloo Region market. “While seasonal slowdowns are expected at this time of year, softer demand has contributed to higher inventory levels than we’ve seen in some time. These conditions offer a real opportunity for first-time buyers. Increased inventory and longer days on the market allow buyers to explore options thoroughly and, with their REALTOR®’s expertise, negotiate from a stronger position. The combination of Waterloo region being a highly desirable place to live and the lower interest rates makes me hopeful that buyers will be coming off the sidelines in the year ahead.”

Total residential sales in November included 274 detached homes (down 18.0 per cent from November 2024), and 91 townhouses (down 20.9 per cent). Sales also included 59 condominium units (up 11.3 per cent) and 41 semi-detached homes (down 6.8 per cent).

In November, the average sale price for all residential properties in Waterloo Region was $713,751. This represents a 5.4 per cent decrease compared to November 2024 and a 2.7 per cent decrease compared to October 2025.

• The average sale price of a detached home was $827,617. This represents a 4.3 per cent decrease from November 2024 and a decrease of 1.8 per cent compared to October 2025.
• The average sale price for a townhouse was $595,337. This represents an 3.1 per cent decrease from November 2024 and an increase of 0.5 per cent compared to October 2025.
• The average sale price for an apartment-style condominium was $422,056. This represents a 6.3 per cent decrease from November 2024 and a decrease of 2.2 per cent compared to October 2025.
• The average sale price for a semi was $635,375. This represents a decrease of 1.4 per cent compared to November 2024 and an increase of 10.8 per cent compared to October 2025.

There were 764 new listings added to the MLS® System in Waterloo Region last month, a decrease of 14.4 per cent compared to November last year, however, this figure remains consistent with the previous ten-year average for November.

At the end of November, there were 1,757 homes available for sale in active status, representing a 15.6% increase from November of last year. This marks the highest number of homes for sale in November in over a decade.

The total inventory across the market increased by 25.9 percent, resulting in a 3.4-month supply of all property types by the end of November. Condominium apartments had the highest inventory, with 6.4 months’ supply, followed by townhouses with 4.1 months’ supply and detached homes with 2.8 months’ supply. The number of months of inventory represents the time it would take to sell all current inventories at the current sales rate.

The average time to sell a home in November was 39 days, which is 8 days longer than the previous month. In November 2024, it took 27 days for a home to sell, and the five-year average was 19 days.

View our HPI tool here to learn more: https://www.cornerstone.inc/stats/

Decrease in Waterloo Region Home Sales for October 2025

WATERLOO REGION, ON (November 5, 2025) —In October, a total of 569 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This represents a 6.7 per cent decrease compared to the same period last year and a decline of 18.4 per cent compared to the average number of homes sold in the previous ten years for the same month.

“While October home sales in Waterloo Region lag behind historical averages, activity did pick up compared to September,” says Christal Moura, spokesperson for the Waterloo Region market. “With more listings available than we typically see this time of year and borrowing costs beginning to ease, buyers have the opportunity to explore a wider range of options.”

Total residential sales in October included 371 detached homes (down 3.4 per cent from October 2024), and 89 townhouses (down 16.8 per cent). Sales also included 56 condominium units (down 16.4 per cent) and 49 semi-detached homes (down 2.0 per cent).

In October, the average sale price for all residential properties in Waterloo Region was $734,928. This represents a 5.6 per cent decrease compared to October 2024 and a 2.4 per cent decrease compared to September 2025.

• The average sale price of a detached home was $842,907. This represents a 4.8 per cent decrease from October 2024 and a decrease of 1.6 per cent compared to September 2025.
• The average sale price for a townhouse was $593,652. This represents an 8.2 per cent decrease from October 2024 and a decrease of 2.2 per cent compared to September 2025.
• The average sale price for an apartment-style condominium was $433,746. This represents a 10.2 per cent decrease from October 2024 and a decrease of 1.9 per cent compared to September 2025.
• The average sale price for a semi was $573,332. This represents a decrease of 11.9 per cent compared to October 2024 and a decrease of 7.7 per cent compared to September 2025.

“The Bank of Canada’s recent 0.25% rate cut and its hint that rates may hold steady could give home buyers the confidence to get preapproved for a mortgage. With a good number of homes for sale in Waterloo Region, now is a good time to talk to your Realtor® about finding a home that is right for you,” says Moura.

There were 1,236 new listings added to the MLS® System in Waterloo Region last month, an increase 7.2 per cent compared to October last year and a 28.7 per cent increase compared to the previous ten-year average for October.

The total number of homes available for sale in active status at the end of October was 2,056, an increase of 23.6 per cent compared to October of last year and 90.2 per cent above the previous ten-year average of 1,081 listings for October.

The total inventory across the market increased by 30.0 percent, resulting in a 3.9-month supply of all property types by the end of October. Condominium apartments had the highest inventory, with 7.6 months’ supply, followed by townhouses with 4.7 months’ supply and detached homes with 3.1 months’ supply. The number of months of inventory represents the time it would take to sell all current inventories at the current sales rate.

The average time to sell a home in October was 31 days, one day less than the previous month. In October 2024, it took 27 days for a home to sell, and the five-year average was 19 days.

View our HPI tool here to learn more: https://www.cornerstone.inc/stats/

Decorating with Books

Books are entertaining and enlightening, and can be a beautiful decorative element in a room if you learn how to display them in an effective way.
 
Here are a few tips for incorporating books as part of your décor!
 
Sort your books following any criteria you want. If decorating is your main concern, focus on sorting by age, binding, or colour, or you can sort based on the content of your books.
 
Decide on the best place in your home to decorate with books. Look for spaces that aren't cluttered and can use some visual interest. Also, look for wall space where you can place a bookcase.
 
Use bookcases as decorating tools by focusing on the theme of your books. If you have a large number of beautifully bound older books, place these books together to create dramatic interest. Shelving books according to their height can add a pleasing order to the bookshelves and complement your décor. Create interest with the bookcases themselves by using a floor-to-ceiling bookcase or shelf to add drama to any room, regardless of the books it houses.
 
Display individual books on tables and other surfaces. You can use the classic coffee table display as you decorate and set one or more especially attractive books on the table. However, if you think more broadly, you can find more surfaces to decorate. A small shelf may be a perfect display for a book with an unusual cover or you might find that a small book fits perfectly in your pantry, bringing you a smile each time you see it.
 
Hardcover books look much better and more decorative without the dust jacket. The bindings are usually printed with nice script, and the colours give the book more of a classical look.

Books are great for elevating lamps that aren't quite tall enough or for bases used for staggering pictures or candlesticks on a dresser or table. Varying heights create more visual interest, and the combination of books and pictures and candles or a lamp is always a great vignette!
 
Need an end table? Stack sturdy books to the height you need. You can even place a tray or basket on top to hold a snack, phone, or remote!
 
Place a square woven bamboo basket with books on a hearth, or to break up a bookshelf. Use cookbooks on a kitchen counter or in a corner display paired with platters, pitchers or a serving bowl. Using an easel, rotate cookbooks and show off the covers if they are pretty and work with seasons—Christmas baking, soups, etc.
 
Place books around your home to draw attention to the function of a room or a corner. If you have a large book collection and want to make a statement in a room, build or purchase enough narrow bookshelves to fill one wall of a room, or one side of a wide hallway. You'll get lots of storage in only 12” to 15" of floor space.
 
Remember that you'll want to read the books from time to time, so make sure they are easily accessible.

Winter Home Maintenance Checklist

With winter just around the corner, it’s time to get your house in shape for the cooler months ahead. Although autumn can be one of the busiest seasons for homeowners preparing for winter, it’s also the best time to take advantage of the moderate weather to repair any damage before the first frost sets in. Here are some home maintenance tips that will keep your home running in peak condition all winter long.

Outdoor Preparation

• Check the roof for cracked or missing shingles, bald spots on shingles, missing or damaged flashing, and other conditions that might allow leaks. Replace any roof shingles that are missing or damaged. Seal minor cracks or tears with roofing cement.
• Check the gutters. If they are clogged with leaves and debris, clean them. Gutters prevent basement and foundation flooding and water damage to siding, windows, and doors.
• Check the siding for cracks or damage and seal any leaky spots with clear caulking compound.
• Windows and doors. Make sure they are properly sealed with weather stripping and replace any damaged parts. Weather stripping prevents drafts and winter heat loss.
• Trim trees and bushes away from the house.
• Cover the air conditioner and barbecue to prevent winter damage.
• Store lawn and patio furniture in a shed or basement. If space is limited, use weather-resistant covers that can protect outdoor furniture.
• Close your pool before leaves start to fall and nighttime temperatures begin to drop; otherwise, you may risk an algae bloom.
• Drain and shut off outdoor water faucets and remove and store garden hoses.
• Store kids' toys indoors or in an outdoor shed to prevent rusting and fading.
• Check and repair exterior lighting before daylight fades.
• Scrape peeling paint and apply touch-up paint to your siding, trim, and fences, and apply waterproofing sealer to your deck if necessary.
• Examine driveways and walkways for cracks. Larger cracks should be sealed to keep out water.

Lawn and Garden

• Prepare planting beds when the soil is relatively dry. By adding soil and mulch to your beds, you'll be a step ahead for spring planting.
• Plant spring-blooming bulbs and perennials.
• Protect roses, saplings, and small trees by sheltering them with a burlap screen.
• Pull weeds to reduce the number of seedlings next spring.
• Mow the grass short for the final cut of the year by reducing the cutting height gradually to 3.5 cm (from 7.4 cm) until the grass stops growing.
• Check ground grading around the house. All surfaces next to walls should be sloped to shed water away from the house. This is most important on warm winter days, as melting snow runs quickly across the surface of the frozen ground. If the grading is incorrect, water will potentially flow into the house, causing basement leakage. Now is the time to use a shovel to re-slope the grass, or call a paving contractor to correct a negatively sloped walkway or driveway.

Indoor Preparation

• Bring container plants inside and make sure they are free of pests. Doing so may enable plants to survive the season and bloom again in spring.
• Caulk around window and door casings to keep out air and water. If your house has wood siding with window frames that stand out from the siding, caulk the top and sides of the frame. Don't caulk under the sill, as this space should be left open to allow moisture inside the wall to escape. If your house is brick or stone, with window frames that are set into the finish material, caulk all four edges of each frame where the brick mould meets the masonry.
• Clean or replace furnace filters as needed. Check and clean the dryer vent, air conditioner, stove hood, and room fans. Keep heating and cooling vents clean and away from furniture and draperies.
• Ensure that all smoke detectors, carbon monoxide detectors, and fire extinguishers are in good working order. Replace batteries as needed, or at least twice each year.
• Have your heating system checked by a licensed heating/air-conditioning professional. Most furnace manufacturers recommend annual inspections.
• Have your chimney(s) inspected by a chimney service and, if necessary, cleaned. Cleaning is generally recommended at least once a year for an active fireplace.
• Store plenty of salt or rock salt, snow shovels, and any other items you will need during the winter.
• Examine the basement floor and walls for cracks or leaks; seal as needed.

If you plan to reside elsewhere during the winter months, you may want to partially shut down your home. In addition to the tips above, consider the following:

• Leave the temperature at its lowest setting, usually between 5 to 7 degrees Celsius, or install a low-heat thermostat to maintain the air temperature at approximately 5 degrees Celsius
• Turn off and drain the water heater; leave a reminder to refill before restarting.
• Keep the electricity on sothe  lights will continue to function (put lights on timers).
• Unplug the microwave, clothes dryer, televisions, and other appliances not in use.
• To avoid large repair bills and the hassle associated with breakdowns, take the time now to develop an action plan for the coming months. You'll feel secure in your warm home or while you're away from home.

Winter can be hard on a house. Following these steps will help preserve your investment and prevent any unnecessary chores or repairs that might be difficult to do during winter.

Paid in Full! 7 Ways to Pay off Your Mortgage Faster

Paying down your mortgage as early as possible is one of the best suggestions that financial advisers make to their clients.  After all, throwing extra money at the biggest debt you may have can result in big interest savings and being mortgage-free years sooner.

Since mortgage payments are made with after-tax dollars, putting extra money down on a debt with an interest rate of 3.49% is equivalent to getting a guaranteed, risk-free return of over 5.0% for most taxpayers. If your mortgage rate is higher, your return would be higher too.

1. Shop around for the best mortgage possible with your credit score. 
When a mortgage company has a small overhead cost to stay in business, it typically means that they will not charge you unreasonable ongoing service fees. Make sure you know the fees charged by your mortgage company before you sign the loan.

2. Select weekly or bi-weekly mortgage payments. 
A bi-weekly mortgage payment means you make 26 half-monthly payments instead of 12 monthly payments. But keep in mind that unless your initial mortgage is set up as bi-weekly, some lenders charge an upfront fee of $300-$400 to make bi-weekly payments, and even though you're making a payment every two weeks, the lender only applies it once a month.

If you make bi-weekly payments of $415 instead of monthly payments of $830, you could save almost $27,000 in interest over the entire amortization period of your mortgage, and you could own your home about 4-1/2 years sooner.

3. Prepay a little extra every month, or any time during the term of your mortgage. Increasing your payment by even a few dollars each month will pay down your principal amount faster. It is a good idea to pay 10-15% more each month. This amount shouldn’t put too much extra burden on you, and it will help to pay off your mortgage much faster. For example, if you increased your mortgage payments by just $170 from $830 to $1,000, you could save almost $48,000 in interest over the entire amortization period of your mortgage, and you could own your home about 8 years sooner. 

4. Make an annual lump sum payment. Use your tax refund, work bonus, or any extra money you can save and apply it directly to your principal amount. Check your mortgage documents to find out how often you can prepay and in what amount. Many loans don't prohibit you from doing this; however, the lender may have parameters on how many extra payments you can make. Ask this question when shopping for a mortgage loan. 
 
5. Pay as much as you can at renewal time. 
Most mortgages become open at renewal. This means you can pay as much as you want on your mortgage. If you chose a 5-year, fixed-rate term, and made a $10,000 lump-sum payment every time your mortgage came up for renewal, you would save about $37,481 in interest over the entire amortization period of your mortgage.

6. Red flag your extra payments. Always check your mortgage statement to make sure that any extra payments you made are being counted against the principal and that your bank has accurately documented your payments. Make the extra principal payments on a separate cheque and make a note on the memo line stating that the payment should be applied to principal reduction only. At tax time, tally up those payments and make sure they've been applied correctly. 

7. Stay informed. Once you have a mortgage, aside from making the payments, it's easy to forget about it altogether. Keeping up-to-date on interest rates and new products could save you money. You may want to shop for another product that better suits your needs. For example, to qualify for a mortgage, you may have started out with a lower-rate adjustable-rate mortgage, but you want to switch to a more long-term, affordable fixed-rate mortgage later. 
Fortunately, it's easy to virtually play around with various payment scenarios. Most financial institutions, banks, and mortgage brokers have online mortgage calculators that can easily calculate the savings for you. Combining two or more of these above tips would result in even bigger savings.

Bank of Canada Cuts Rate - What it Means for You

The Bank of Canada today reduced its target for the overnight rate by 25 basis points to 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. This is the second consecutive cut from the central bank as it cut its rate by 25 basis points in September. 

This move reflects ongoing softening in the Canadian economy, including slower business activity and easing inflation. It is intended to help support households during this transition. According to TD Deputy Chief Economist Derek Burleton, this lower rate environment is likely to persist for quite some time as the economy adjusts to its new trade normal

Canada’s economy contracted by 1.6% in the second quarter, reflecting a drop in exports and weak business investment amid heightened uncertainty. Meanwhile, household spending grew at a healthy pace. US trade actions and related uncertainty are having severe effects on targeted sectors including autos, steel, aluminum, and lumber. As a result, GDP growth is expected to be weak in the second half of the year. Growth will get some support from rising consumer and government spending and residential investment, and then pick up gradually as exports and business investment begin to recover.

Canada’s labour market remains soft. Employment gains in September followed two months of sizeable losses. Job losses continue to build in trade-sensitive sectors, and hiring has been weak across the economy. The unemployment rate remained at 7.1% in September, and wage growth has slowed. Slower population growth means fewer new jobs are needed to keep the employment rate steady.

For Canadians with variable-rate mortgages, rate cuts can mean more of their mortgage payments go towards the principal and less towards interest. Homeowners with a variable-rate mortgage and variable payments could see their total payment shrink.

For Canadians with fixed-rate mortgages, a central bank rate cut does not immediately affect them since fixed-rate mortgages are commonly based on five-year bond yields.

While market dynamics are evolving, this rate drop could create meaningful opportunities for homeowners depending on your current mortgage situation.

If you’re renewing soon…

A lower rate environment could improve your affordability and cash flow. It’s a great time to explore lenders and terms to avoid overpaying at renewal.

 

If you’re considering refinancing…

You may be able to:

• Lower your monthly payments
• Consolidate high-interest debt
• Access home equity for renovations or other financial goals

This change could make a refinance more cost-effective and worth reviewing sooner.

If you’re planning a purchase…

More favourable borrowing conditions may help expand affordability and boost confidence as you search for the right home.

The economic conditions are shifting, and even small rate changes can have a big impact on the life of a mortgage. Combined with softening prices and increased supply, this will give buyers more leverage, allowing for conditional offers and more time to make decisions.