Finding the Right Home Without Blowing Your Budget

Shanna Davis • October 30, 2018

If you have been looking to find the right first home within your budget, it’s a matter of mind over money, here’s some tips from Genworth Financial that will help you keep perspective!

It’s hard to say “goodbye” to your dream home. But if you fall for a house that’s out of your budget, that’s exactly what you should do. Don’t ask your mortgage broker to get you approved for a larger mortgage, and don’t stew over the one that got away.

Responsible homeownership includes knowing what you can comfortably afford, setting a budget, and buying within it. If you take on a budget-hammering mortgage, you’ll be left with little discretionary income or emergency funds.

Exercising self-control is crucial. Shopping for your first home? Use our top 3 tips to stay budget-focused:

Avoid a multiple offer situation

If a great house is priced low for its neighbourhood, chances are the sellers want to generate a lot of interest and ultimately create a bidding war. If the list price is near the top of your budget, save yourself the anxiety – and probable disappointment – of bidding.

If it’s well under your budget, put in your one best offer. If the seller comes back inviting another offer, don’t bite. Move on.

Shop with your head, not your heart

A common mistake first-timers make is getting too emotionally invested in the home-buying process. Avoid that!

Don’t fall in love with a house that’s not yours.
Don’t let your ego push you into a bidding war because you “are in it to win it.”
Do go house hunting when you’re rested, fed and level-headed, not tired, stressed out or “hungry” (so hungry you’re borderline angry).

Finally, remember it’s a starter home

According to Genworth Canada research, 50% of first-time homebuyers view their first home as a starter home and plan on moving within the decade. Those years go by quickly when you’re living your life, raising a family, and completing home improvement projects that increase the enjoyment of your home.

Buy conservatively (a good-enough home you can comfortably afford), build equity over the next decade, and hit the market when you’ve got the means to hunt for your blue-sky-perfect forever home.

This article: Mind over money: Find the right home without blowing your budget was originally published by Genworth Canada on homeownership.ca here.

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SHANNA DAVIS

Mortgage Broker

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Standard or Collateral Charge Mortgage. What’s best for you?

By Shanna Davis • October 30, 2025

When arranging mortgage financing, your mortgage lender will register your mortgage in one of two ways. Either with a standard charge mortgage or a collateral charge mortgage. Let’s look at the differences between the two. Standard charge mortgage This is your good old-fashioned mortgage. A standard charge mortgage is the mortgage you most likely think about when you consider mortgage financing. Here, the amount you borrow from the lender is the amount that is registered against the title to protect the lender if you default on your mortgage. When your mortgage term is up, you can either renew your existing mortgage or, if it makes more financial sense, you can switch your mortgage to another lender. As long as you aren’t changing any of the fine print, the new lender will usually cover the cost of the switch. A standard charge mortgage has set terms and is non-advanceable. This means that if you need to borrow more money, you'll need to reapply and requalify for a new mortgage. So there will be costs associated with breaking your existing mortgage and costs to register a new one. Collateral charge mortgage A collateral charge mortgage is a mortgage that can have multiple parts, usually with a re-advanceable component. It can include many different financing options like a personal loan or line of credit. Your mortgage is registered against the title in a way that should you need to borrow more money down the line; you can do so fairly easily. A home equity line of credit is a good example of a collateral charge mortgage. Unlike a standard charge mortgage, here, your lender will register a higher amount than what you actually borrow. This could be for the property's full value, or some lenders will go up to 125% of your property's value. In the future, if the value of your property appreciates, with a collateral charge mortgage, you don't have to rewrite your existing mortgage to borrow more money (assuming you qualify). This will save you from any costs associated with breaking your existing mortgage and registering a new one. However, if you’re looking to switch your mortgage to another lender at the end of your term, you might be forced to discharge your mortgage and incur legal fees. Also, by registering your mortgage with a collateral charge, you potentially limit your ability to secure a second mortgage. So what’s a better option for you? Well, there are benefits and drawbacks to both. Finding the best option for you really depends on your financial situation and what you believe gives you the most flexibility. This is probably a question better handled in a conversation rather than in an article. With that said, undoubtedly, the best option is to work with an independent mortgage professional. It’s our job to understand the intricacies of mortgage financing, listen to and assess your needs, and recommend the best mortgage to meet your needs. As we work with many lenders, we can provide you with options. Don’t get stuck dealing with a single institution that may only offer you a collateral charge mortgage when what you need is a standard charge mortgage. So if you’d like to have a conversation about mortgage financing, please get in touch. It would be a pleasure to work with you and answer any questions you might have.

Everything You Need to Know About Second Mortgages

By Shanna Davis • October 16, 2025

What Is a Second Mortgage, Really? (It’s Not What Most People Think) If you’ve heard the term “second mortgage” and assumed it refers to the next mortgage you take out after your first one ends, you’re not alone. It’s a common misconception—but the reality is a bit different. A second mortgage isn’t about the order of mortgages over time. It’s actually about the number of loans secured against a single property —at the same time. So, What Exactly Is a Second Mortgage? When you first buy a home, your mortgage is registered on the property in first position . This simply means your lender has the primary legal claim to your property if you ever sell it or default. A second mortgage is another loan that’s added on top of your existing mortgage. It’s registered in second position , meaning the lender only gets paid out after the first mortgage is settled. If you sell your home, any proceeds go toward paying off the first mortgage first, then the second one, and any remaining equity is yours. It’s important to note: You still keep your original mortgage and keep making payments on it —the second mortgage is an entirely separate agreement layered on top. Why Would Anyone Take Out a Second Mortgage? There are a few good reasons homeowners choose this route: You want to tap into your home equity without refinancing your existing mortgage. Your current mortgage has great terms (like a low interest rate), and breaking it would trigger hefty penalties. You need access to funds quickly , and a second mortgage is faster and more flexible than refinancing. One common use? Debt consolidation . If you’re juggling high-interest credit card or personal loan debt, a second mortgage can help reduce your overall interest costs and improve monthly cash flow. Is a Second Mortgage Right for You? A second mortgage can be a smart solution in the right situation—but it’s not always the best move. It depends on your current mortgage terms, your equity, and your financial goals. If you’re curious about how a second mortgage could work for your situation—or if you’re considering your options to improve cash flow or access equity—let’s talk. I’d be happy to walk you through it and help you explore the right path forward. Reach out anytime—we’ll figure it out together.