Your Financial Plan to Becoming Debt-Free Post-COVID

Marci • May 20, 2020

Although everyone is experiencing the impact of COVID-19 differently, one thing has become evident. As a result of the pandemic, we’re all paying closer attention to our finances. Looking at life post-COVID, it’s going to be essential to have a financial plan.

Here are some action points to consider as life returns to some sense of routine and as you plan your financial future.

Pay off your revolving consumer debt first.

If you have consumer debt, or if you’ve gone into debt to cover your expenses through social-isolation, paying off any consumer debt should be your priority. This would be your credit cards and line of credits.

You want to start by making any additional payments on the highest interest debt while maintaining minimum payments on everything else. Once the first debt is paid off, roll all your payments onto your next debt. And so on, until you’ve paid off all your revolving consumer debt.

Set up an emergency fund second.

It doesn’t make much sense to put money in a bank account for an emergency fund when you have revolving debt that is incurring interest. Once you’ve paid off all your revolving debt, you will still have access to that money again should you need it, which acts like an expensive emergency fund before you have money in the bank.

Finance experts suggest you should have 3-6 months in a savings account in case you lose your job or experience unforeseen health issues. And in the face of the most recent global pandemic; the unexpected has just happened, this is the proof that the experts are right, and having an emergency fund is an excellent idea.

Then pay off your instalment loans.

With all your revolving debt paid off and a healthy amount of money in the bank to prepare for the next national emergency, you should start paying off your instalment loans, like a car loan or student loans. Start with the highest interest loans first, working your way through until everything is paid off. Most loans will allow you to make additional payments, double-up on payments when possible.

Start saving for a downpayment.

If you don’t yet own a home, and you would like to work through a plan to get you there, please contact me anytime . Although you don’t have to be completely debt-free to qualify for a mortgage, the less money you owe, the more money you are allowed to borrow in mortgage financing.

And the same principles used to pay down your debt can be used to save for a downpayment. The more money you have as a downpayment, the more you qualify for, and the less interest you will pay over the long run.

If you already own a home, you’re debt-free, and you have a healthy emergency fund, you should consider accelerating your mortgage payments.

Accelerate your payment frequency. 

Making the change from monthly payments to accelerated bi-weekly payments is one of the easiest ways you can make a difference to the bottom line of your mortgage. Most people don’t even notice the difference.

A traditional mortgage splits the amount owing to 12 equal monthly payments. Accelerated biweekly is simply taking a regular monthly payment and dividing it in two, but instead of making 24 payments, you make 26. The extra two payments accelerate the pay down of your mortgage.

Increase your mortgage payment amount.

Unless you opted for a “no-frills” mortgage, chances are you can increase your regular mortgage payment by 10-25%. This is an excellent option if you have some extra cash flow to spend in your budget. This money will go directly towards paying down the principal amount owing on your mortgage and isn’t a prepayment of interest.

The more money you can pay down when you first get your mortgage, the better, as it has a compound effect, meaning you will pay less interest over the life of your mortgage.

Also, by voluntarily increasing your mortgage payment, it’s kind of like signing up for a long term forced savings plan where equity builds in your house rather than your bank account.

Make a lump-sum payment.

Again, unless you have a “no-frills” mortgage, you should be able to make bulk payments to your mortgage. Depending on your lender and your mortgage product, you should be able to put down anywhere from 10-25% of the original mortgage balance. Some lenders are particular about when you can make these payments; however, if you haven’t taken advantage of a lump sum payment yet this year, you will be eligible.

Review your options regularly.

As your mortgage payments are withdrawn from your account regularly, it’s easy to simply put your mortgage payments on auto-pilot, especially if you have opted for a five year fixed term.

Regardless of the terms of your mortgage, it’s a good idea to give your mortgage an annual review. There may be opportunities to refinance and lower your interest rate, or maybe not. Still, the point of reviewing your mortgage annually is that you are conscious about making decisions regarding your mortgage.

Want to review your existing mortgage, or discuss getting a new one?

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Everything You Need to Know About Mortgage Financing in Canada

By Marci Deane • November 5, 2025
For most Canadians, buying a home isn’t possible without a mortgage. And while getting a mortgage may seem straightforward—borrow money, buy a home, pay it back—it’s the details that make the difference. Understanding how mortgages work (and what to watch out for) is key to keeping your borrowing costs as low as possible. The Basics: How a Mortgage Works A mortgage is a loan secured against your property. You agree to pay it back over an amortization period (often 25 years), divided into shorter terms (ranging from 6 months to 10 years). Each term comes with its own interest rate and rules. While the interest rate is important, it’s not the only thing that determines the true cost of your mortgage. Features, penalties, and flexibility all play a role—and sometimes a slightly higher rate can save you thousands in the long run. Key Questions to Ask Before Choosing a Mortgage How long will you stay in the property? Your timeframe helps determine the right term length and product. Do you need flexibility to move? If a work transfer or lifestyle change is possible, portability may be important. What are the penalties for breaking the mortgage early? This is one of the biggest factors in the real cost of borrowing. A low rate won’t save you if breaking costs you tens of thousands. How are penalties calculated? Some lenders use more borrower-friendly formulas than others. It’s not easy to calculate yourself—get professional help. Can you make extra payments? Prepayment privileges allow you to pay off your mortgage faster, potentially saving years of interest. How is the mortgage registered on title? Some registrations (like collateral charges) can limit your ability to switch lenders at renewal without extra costs. Which type of mortgage fits best? Fixed, variable, HELOCs, or even reverse mortgages each have their place depending on your financial and life situation. What’s your down payment? A larger down payment could reduce or eliminate mortgage insurance premiums, saving thousands upfront. Why the Lowest Rate Isn’t Always the Best Choice It’s tempting to chase the lowest rate, but mortgages with rock-bottom pricing often come with restrictive terms. For example, saving 0.10% on your rate may put a few extra dollars in your pocket each month, but if the mortgage has harsh penalties, you could end up paying thousands more if you break it early. The goal isn’t just the lowest rate—it’s the lowest overall cost of borrowing . That’s why it’s so important to look beyond the headline number and consider the whole picture. The Bottom Line Mortgage financing in Canada is about more than rate shopping. It’s about aligning your mortgage with your financial goals, lifestyle, and future plans. The best way to do that is to work with an independent mortgage professional who can walk you through the fine print and help you secure the product that truly keeps your costs low. If you’d like to explore your options—or review your current mortgage to see if it’s really working in your favour—let’s connect. I’d be happy to help.

Bank of Canada Cuts but may have also thrown us a Curveball Oct 29

By Marci Dean • October 31, 2025
Apologies in advance for all the baseball puns! We are fully on the Blue Jay bandwagon over here ad loving every minute of it! Who knew baseball could be so much fun and wow, the strategy!! Very impressed!! As you likely heard, the Bank of Canada took the mound and cut the BOC policy rate to 2.25% which will push prime down to 4.45%. That’s the lowest since mid-2022. This was not a celebratory pitch. It was a damage-control adjustment to help an economy that’s limping between bases. Why the BoC Made the Move Think of the economy as a lineup that’s losing steam: GDP contracted — investment and exports are getting jammed inside Jobs remain soft — hiring is weak, unemployment is climbing Trade uncertainty (especially CUSMA renewal drama) has businesses choking up on the bat Consumers are still swinging , but they can’t win the series alone Inflation Scoreboard Inflation isn’t a shutout, but the score is manageable: CPI hovering near 2–2.5% Core still “sticky” around 3%, but trending lower BoC believes price pressures will cool further in coming innings That gave them the green light to make this cut without risking a walk-off inflation disaster. Forward Guidance = “Don’t Expect Extra Cuts Right Away” Macklem essentially said: If the game plays out as expected, this is the right rate for now. Translation: barring a shock, don’t expect another cut in December.  This is likely a pause , not the start of an aggressive easing cycle. Markets agree — odds of another cut next meeting are tiny.

Bank of Canada Rate Announcement Oct 29th, 2025

By Marci Deane • October 29, 2025
Bank of Canada lowers policy rate to 2¼%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario October 29, 2025 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%. With the effects of US trade actions on economic growth and inflation somewhat clearer, the Bank has returned to its usual practice of providing a projection for the global and Canadian economies in this Monetary Policy Report (MPR). Because US trade policy remains unpredictable and uncertainty is still higher than normal, this projection is subject to a wider-than-usual range of risks. While the global economy has been resilient to the historic rise in US tariffs, the impact is becoming more evident. Trade relationships are being reconfigured and ongoing trade tensions are dampening investment in many countries. In the MPR projection, the global economy slows from about 3¼% in 2025 to about 3% in 2026 and 2027. In the United States, economic activity has been strong, supported by the boom in AI investment. At the same time, employment growth has slowed and tariffs have started to push up consumer prices. Growth in the euro area is decelerating due to weaker exports and slowing domestic demand. In China, lower exports to the United States have been offset by higher exports to other countries, but business investment has weakened. Global financial conditions have eased further since July and oil prices have been fairly stable. The Canadian dollar has depreciated slightly against the US dollar. 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. The Bank projects GDP will grow by 1.2% in 2025, 1.1% in 2026 and 1.6% in 2027. On a quarterly basis, growth strengthens in 2026 after a weak second half of this year. Excess capacity in the economy is expected to persist and be taken up gradually. CPI inflation was 2.4% in September, slightly higher than the Bank had anticipated. Inflation excluding taxes was 2.9%. The Bank’s preferred measures of core inflation have been sticky around 3%. Expanding the range of indicators to include alternative measures of core inflation and the distribution of price changes among CPI components suggests underlying inflation remains around 2½%. The Bank expects inflationary pressures to ease in the months ahead and CPI inflation to remain near 2% over the projection horizon. With ongoing weakness in the economy and inflation expected to remain close to the 2% target, Governing Council decided to cut the policy rate by 25 basis points. If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. If the outlook changes, we are prepared to respond. Governing Council will be assessing incoming data carefully relative to the Bank’s forecast. The Canadian economy faces a difficult transition. The structural damage caused by the trade conflict reduces the capacity of the economy and adds costs. This limits the role that monetary policy can play to boost demand while maintaining low inflation. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. Information note The next scheduled date for announcing the overnight rate target is December 10, 2025. The Bank’s next MPR will be released on January 28, 2026. Read the October 29th, 2025 Monetary Report