Let’s Talk Dirty – Part 3

Marci • January 12, 2012

Five Step Debt Reduction Plan

Our goal is to assess your debt then work to reduce it. The first half of building wealth is saving with your wealth account. The second half is to reduce your debt. Both need to happen at the same time.

Here is the 5 step plan:

Step 1 :  Fill out the debt elimination box, listing every debt that is not secured against an asset.
 Debt Name Amount  $ (2) Min Payment  (3) Interest Rate Factoring #
Step 2: The Factoring #

Take the number in column 2 and divide that number by the number in column 3. This is the “factoring number.” Fill in the factoring number for each debt.

Step 3: Priority Pay-off Box

Take the debt with the lowest factoring number and list it first. This debt is the first priority payoff.  Continue to list the debts in order of their factoring number, with the lowest factoring number debt in first place, the debt with the second lowest factoring number in the next, and so on.

 Order of Payoff Name of Debt Factoring # Min Payment

Download my FREE Budget Spreadsheet HERE ……It will guide you through these steps.

Step 4: The Jump Start

At this point, you need to create a household budget. If you’ve never done one, I have tools and tips to help you with the process. A budget gives you a clear understanding of where your money comes from and where it is being spent. Budgeting also enables you to see what expenditures can be reduced or eliminated

Looking at your budget, in addition to the minimum debt payments required, you are also going to take $200 from your current spending and allocate it to debt. This may sound intimidating, but consider that $200 a month translates to about $7 a day. By reviewing your budget, reallocating $200 may not be as difficult as you think.

Step 5: Debt Payments

Take the debt listed first in the priority pay-off box and apply the $200 allocation to it. Continue to pay the minimum monthly payments on all your other debts. Once you have paid off the first debt, apply the same payment method to the second debt listed, and so on. Your commitment to making minimum payments while also applying the jump start allocation is vital. Also consider the accelerated payment that happens when, as you pay off one debt, its minimum payments stay within the debt pool (add to the $200) and contribute to the next debt’s payments.

By the time you get to the debt at the bottom – the one with the highest factoring number or the number of months to pay off the debt based on the original monthly payments – you will see that you will pay the debt off much faster than the factoring number states.

Download my FREE Budget Spreadsheet HERE ……It will guide you through these steps.

And just like that, no more dirty laundry!

 

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Bank of Canada Holds Rate at 2.25% — June 10, 2026

By Marci Deane • June 10, 2026
The Bank of Canada announced today that it is maintaining its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For Canadian homeowners, buyers, and anyone with a mortgage on the horizon — here's what you need to know.

First-Time Buyer? Here’s How to Tell If You’re Ready

By Marci Deane • June 3, 2026
Ready to Buy Your First Home? Here’s How to Know for Sure Buying your first home is exciting—but it’s also a major financial decision. So how can you tell if you’re truly ready to take that leap into homeownership? Whether you’re confident or still unsure, these four signs are solid indicators that you’re on the right path: 1. You’ve Got Your Down Payment and Closing Costs in Place To purchase a home in Canada, you’ll need at least 5% of the purchase price as a down payment. In addition, plan for around 1.5% to 2% of the home’s value to cover closing costs like legal fees, insurance, and adjustments. If you’ve managed to save this on your own, that’s a great sign of financial discipline. If you're receiving help from a family member through a gifted down payment , that works too—as long as the paperwork is in order. Either way, having these funds ready shows you’re prepared for the upfront costs of homeownership. 2. Your Credit Profile Tells a Good Story Lenders want to know how you manage debt. Before they approve you for a mortgage, they’ll review your credit history. What they typically like to see: At least two active credit accounts (trade lines) , like a credit card or loan Each with a minimum limit of $2,000 Open and active for at least 2 years Even if your credit isn’t perfect, don’t panic. There may still be options, such as using a co-signer or working on a credit improvement plan with a mortgage expert. 3. Your Income Can Support Homeownership—Comfortably A steady income is essential, but not all income is treated equally. If you’re full-time and past probation , you’re in a strong position. If you’re self-employed, on contract, or rely on variable income like tips or commissions, you’ll generally need a two-year history to qualify. A general rule: housing costs (mortgage, taxes, utilities) should stay under 35% of your gross monthly income . That leaves plenty of room for other living expenses, savings, and—yes—some fun too. 4. You’ve Talked to a Mortgage Professional Let’s be real—there’s a lot of info out there about buying a home. Google searches and TikToks can only take you so far. If you're serious about buying, speaking with a mortgage professional is the most effective next step. Why? Because you'll: Get pre-approved (and know what price range you're working with) Understand your loan options and the qualification process Build a game plan that suits your timeline and financial goals The Bottom Line: Being “ready” to buy a home isn’t just about how much you want it—it’s about being financially prepared, credit-ready, and backed by expert advice. If you’re thinking about homeownership, let’s chat. I’d love to help you understand your options, crunch the numbers, and build a plan that gets you confidently across the finish line—keys in hand.

Home Reno Dreams? Let’s Talk Mortgage Financing

By Marci Deane • May 27, 2026
How to Use Your Mortgage to Finance Home Renovations Home renovations can be exciting—but they can also be expensive. Whether you're upgrading your kitchen, finishing the basement, or tackling a much-needed repair, the cost of materials and labour adds up quickly. If you don’t have all the cash on hand, don’t worry. There are smart ways to use mortgage financing to fund your renovation plans without derailing your financial stability. Here are three mortgage-related strategies that can help: 1. Refinancing Your Mortgage If you're already a homeowner, one of the most straightforward ways to access funds for renovations is through a mortgage refinance. This involves breaking your current mortgage and replacing it with a new one that includes the amount you need for your renovations. Key benefits: You can access up to 80% of your home’s appraised value , assuming you qualify. It may be possible to lower your interest rate or reduce your monthly payments. Timing tip: If your mortgage is up for renewal soon, refinancing at that time can help you avoid prepayment penalties. Even mid-term refinancing could make financial sense, depending on your existing rate and your renovation goals. 2. Home Equity Line of Credit (HELOC) If you have significant equity in your home, a Home Equity Line of Credit (HELOC) can offer flexible funding for renovations. A HELOC is a revolving credit line secured against your home, typically at a lower interest rate than unsecured borrowing. Why consider a HELOC? You only pay interest on the amount you use. You can access funds as needed, which is ideal for staged or ongoing renovations. You maintain the terms of your existing mortgage if you don’t want to refinance. Unlike a traditional loan, a HELOC allows you to borrow, repay, and borrow again—similar to how a credit card works, but with much lower rates. 3. Purchase Plus Improvements Mortgage If you're in the market for a new home and find a property that needs some work, a "Purchase Plus Improvements" mortgage could be a great option. This allows you to include renovation costs in your initial mortgage. How it works: The renovation funds are advanced based on a quote and are held in trust until the work is complete. The renovations must add value to the property and meet lender requirements. This type of mortgage lets you start with a home that might be more affordable upfront and customize it to your taste—all while building equity from day one. Final Thoughts Your home is likely your biggest investment, and upgrading it wisely can enhance both your comfort and its value. Mortgage financing can be a powerful tool to fund renovations without tapping into high-interest debt. The right solution depends on your unique financial situation, goals, and timing. Let’s chat about your options, run the numbers, and create a plan that works for you. 📞 Ready to renovate? Connect anytime to get started!