Reasons You Might Need an Emergency Fund

Jen & Cory • July 31, 2018

You’ve heard the horror stories: basement floods gone wrong, cars that randomly stop running, or a pal suddenly losing their job. Perhaps you’re the type of person who thinks “that will never happen to me!” when hearing one of these stories, but the cold reality is that it very well could happen to you.

But don’t panic! All you need is a little money stashed away that most people dub the “emergency fund”. The word emergency can sound a bit frightening, but what it really comes down to is making sure you have some funds set aside just in case something happens that’s suddenly out of your financial control.

So what exactly warrants having some extra cash on hand? We knock out a few of those horror stories below.

You Or Your Partner Become Unexpectedly Pregnant

Surprise! The gift of life has arrived ,the only problem is — you aren’t prepared. In a situation where you don’t want to panic more than you already are, lean on the weight of your emergency stash to ease the reaction of surprise news.

You Become a Victim of Identity Fraud

Never something you want to have to think about, but you can never be too careful. If you’re the unfortunate victim of identity fraud you may find yourself in a situation where all of your cards are tied up. Having some extra cash on the side will help ease the stress of an unfortunate situation.

Your Home Requires An Unplanned Repair

Being a homeowner means being fully aware that things can change in your environment at any time, and that means unplanned repairs. Whether it’s a roof that needs replacing or a flood in the basement, having the extra funds to cover off unexpected expenses is key

You Have To Take An Unplanned Flight

Varying life circumstances may force you to take a flight at a moment’s notice. In these times, don’t get stuck charging travel to your credit card. Having the money to book a flight whenever necessary could make the difference between a peaceful and not-so-peaceful duration of your flight.

You Find Yourself Stuck With a Major Health Expense

Canadians are lucky to have the benefits of a country-wide health care plan, but there are some things OHIP simply won’t cover like crutches, casts, splints, physiotherapy, dental care, etc. If you aren’t entitled for additional benefits with your employer, you will certainly want to be prepared for these expenses and more when it comes to medical assistance.

Your Car Needs Repairs or Breaks Down Entirely

It’s very possible you’ve found yourself in this position before, and if you didn’t have funds lined up to deal with the damages, you will most certainly know the cost of being unprepared. Don’t make the same mistake twice.

You Lose Your Job

Perhaps the most common reason to have some money set aside is if you unexpectedly lose your job. It’s suggested that the ideal amount to have ready in this situation is three to six months worth of your salary. If that’s unrealistic for you, think about what is realistic and begin working toward that.

Of course, there are other circumstances we haven’t listed here when an emergency fund is necessary. The moral of the story is, saving a sum of money for situations out of your control is something worth investing in.


This article was written by Shorey Andrews and originally appeared on the Nest Wealth blog on August 30th, 2017.

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Deposit vs. Down Payment: Key Differences for Homebuyers

By Jen & Cory • April 1, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.

What Is a Cashback Mortgage and How Does It Work?

By Jen & Cory • March 25, 2026
Cashback Mortgages: Are They Worth It? Here’s What You Need to Know If you’ve been exploring mortgage options and come across the term cashback mortgage , you might be wondering what exactly it means—and whether it’s a smart move. Let’s break it down in simple terms. What Is a Cashback Mortgage? A cashback mortgage is just like a regular mortgage—but with one extra feature: you receive a lump sum of cash when the mortgage closes . This cash is typically: A fixed amount , or A percentage of the total mortgage , usually between 1% and 7% , depending on your mortgage term and lender. The money is tax-free and paid directly to you on closing day. What Can You Use the Cashback For? There are no restrictions on how you use the funds. Here are some common uses: Covering closing costs Buying new furniture Renovations or home upgrades Paying off high-interest debt Boosting your cashflow during a tight transition Whether it’s to help you settle in or catch up financially, cashback can offer a helpful buffer— but it comes at a cost . The True Cost of a Cashback Mortgage Here’s the part many people overlook: cashback mortgages come with higher interest rates than standard mortgages. Why? Because the lender is essentially advancing you a small loan upfront—and they’re going to make that money back (and then some) through your mortgage payments. So while the upfront cash feels like a bonus, you’ll pay more in interest over time to have that convenience. Breaking Down the Numbers It’s hard to give a blanket answer about how much more you’ll pay since it depends on: Your interest rate The cashback amount The mortgage term Your payment schedule This is why it’s important to run the numbers with a mortgage professional who can help you compare this option with others based on your personal financial situation. Are You Eligible for a Cashback Mortgage? Not everyone qualifies. Cashback mortgages generally come with stricter requirements . Lenders often want to see: Excellent credit history Strong, stable income Low debt-to-income ratio If your mortgage file includes anything “outside the box”—like being self-employed or recently changing jobs—qualifying for a cashback mortgage might be tough. What If You Need to Break the Mortgage? This is one of the biggest risks with cashback mortgages. If your circumstances change and you need to break your mortgage early, you could be on the hook for: Paying back some or all of the cashback you received, and A prepayment penalty (typically the interest rate differential or 3 months’ interest—whichever is higher) That can be a very expensive combination. So if there’s even a chance you might need to sell, refinance, or move before your term is up, a cashback mortgage might not be the best fit. Should You Consider a Cashback Mortgage? Maybe—but only with eyes wide open. Cashback mortgages can be helpful in the right scenario, but they’re not free money. They’re a lending tool that benefits the lender , and the key is knowing exactly what you’re agreeing to. Final Thoughts: Talk to an Expert First Choosing the right mortgage isn’t just about the lowest rate or the biggest perk—it’s about making a choice that fits your whole financial picture. If you’re considering a cashback mortgage, or just want to explore all your options, let’s talk. As an independent mortgage professional , I can help you weigh the pros and cons of various products, so you can make a confident, informed decision. Have questions? I’d be happy to help—reach out anytime.