Using Common Spending Habits to Accelerate Mortgage Repayment

Jen & Cory • March 1, 2018

Whether you are looking to save a downpayment for your first home or you would like to pay down your existing mortgage just a little more quickly, the secret to getting ahead might just be in managing your spending habits.

Nestwealth, a Canadian wealth management company; who has a really good blog, recently released an article called "6 Common Spending Habits you Don't Have to Follow". The article has been published with permission below, have a read through their suggestions to see if you have any money you could use to either save that downpayment, or put down on your existing mortgage!

If you have any questions about mortgage financing, don't hesitate to contact us anytime!

6 Common Spending Habits You Don’t Have To Follow

Our frivolous spending is often formed out of habit. And since habits are made up of actions we don’t realize we are doing over and over, it makes sense that our common spending habits are usually the hardest to identify and break.

But it doesn’t have to be that way.

Sometimes all you need is a gentle nudge from someone else to help kick those pesky spending habits to the side. Check out the top six common spending habits that you don’t (and shouldn’t) have to follow.

1. Treating yourself to lunch or dinner … every day.

Life is busy and sometimes it feels like it’s moving faster than we can keep up with. In those instances, it’s easy for us to grab lunch on the go or allow the takeout containers to pile up from dinners we simply didn’t have the time to make ourselves.

This spending pattern not only takes a toll on our bank account, but our health as well. You can alter this behaviour by planning your meals ahead of time, which can include treating yourself when necessary.

2. Charging a vacation to your credit card.

Oh how sweet life would be if we could afford endless vacation. That isn’t the case for most and yet, so many of us end up traveling on credit because it’s just so easy to do.

Breaking the habit here is simple. If you can’t actually afford to get there and have a good time, you shouldn’t be going in the first place. Sound depressing? It doesn’t have to be. Be realistic with your budget and start putting aside moneyin your vacation fund.

You will enjoy your time away so much more without the debt.

3. Impulse buying … everything and anything!

We’re all guilty of impulse purchasing. It’s how the retail business was built after all.It can be even more challenging to avoid when you’re in the company of friends and family that have the very same habit.

But sometimes we have to pull back and have that difficult conversation with ourselves where we admit that we don’t truly need that new shirt, shoes, or home accessory.

4. Paying for unused services.

So, you got stopped on the street and signed up for a membership to somewhere, for something — and never looked at it again. Or how about that gym membership you pay for every month … but never set foot in.

Don’t worry, it happens! What better time than now to cancel those memberships and redirect that money somewhere else — like back in your bank account.

5. Falling victim to fees.

It’s so easy to get caught up in the rush of doing things quickly and conveniently. More often than not, convenience comes at a price.

Think about how many times you’re cashless and fall victim to those pesky ATM fees, or maybe you overdo it on the e-transfers and gasp at your bank statement when you see how much that seemingly little convenience cost you.

Plan ahead by pulling the cash you need for the week and be aware of what these tiny habits are costing you in the long run.

6. Avoiding the small pleasures.

On the flip side of all that we’ve mentioned, it’s super important that you do in fact indulge in that latte, as opposed to desperately trying to save your way to wealth by avoiding the small stuff.

While this might seem counter-intuitive, we actually discuss the science behind this in more detail by breaking down the ‘latte factor’in our podcast ‘The Smart Money’.

Start changing your spending habits now, so you can afford more in your future.

Jen & Cory
YOUR MORTGAGE EXPERTS

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By Jen & Cory • June 4, 2025
Bank of Canada holds policy rate at 2¾%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario June 4, 2025 The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%. Since the April Monetary Policy Report, the US administration has continued to increase and decrease various tariffs. China and the United States have stepped back from extremely high tariffs and bilateral trade negotiations have begun with a number of countries. However, the outcomes of these negotiations are highly uncertain, tariff rates are well above their levels at the beginning of 2025, and new trade actions are still being threatened. Uncertainty remains high. While the global economy has shown resilience in recent months, this partly reflects a temporary surge in activity to get ahead of tariffs. In the United States, domestic demand remained relatively strong but higher imports pulled down first-quarter GDP. US inflation has ticked down but remains above 2%, with the price effects of tariffs still to come. In Europe, economic growth has been supported by exports, while defence spending is set to increase. China’s economy has slowed as the effects of past fiscal support fade. More recently, high tariffs have begun to curtail Chinese exports to the US. Since the financial market turmoil in April, risk assets have largely recovered and volatility has diminished, although markets remain sensitive to US policy announcements. Oil prices have fluctuated but remain close to their levels at the time of the April MPR. In Canada, economic growth in the first quarter came in at 2.2%, slightly stronger than the Bank had forecast, while the composition of GDP growth was largely as expected. The pull-forward of exports to the United States and inventory accumulation boosted activity, with final domestic demand roughly flat. Strong spending on machinery and equipment held up growth in business investment by more than expected. Consumption slowed from its very strong fourth-quarter pace, but continued to grow despite a large drop in consumer confidence. Housing activity was down, driven by a sharp contraction in resales. Government spending also declined. The labour market has weakened, particularly in trade-intensive sectors, and unemployment has risen to 6.9%. The economy is expected to be considerably weaker in the second quarter, with the strength in exports and inventories reversing and final domestic demand remaining subdued. CPI inflation eased to 1.7% in April, as the elimination of the federal consumer carbon tax reduced inflation by 0.6 percentage points. Excluding taxes, inflation rose 2.3% in April, slightly stronger than the Bank had expected. The Bank’s preferred measures of core inflation, as well as other measures of underlying inflation, moved up. Recent surveys indicate that households continue to expect that tariffs will raise prices and many businesses say they intend to pass on the costs of higher tariffs. The Bank will be watching all these indicators closely to gauge how inflationary pressures are evolving. With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts. We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. Governing Council is proceeding carefully, with particular attention to the risks and uncertainties facing the Canadian economy. These include: the extent to which higher US tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer prices; and how inflation expectations evolve. We are focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. We will support economic growth while ensuring inflation remains well controlled. Information note The next scheduled date for announcing the overnight rate target is July 30, 2025. The Bank will publish its next MPR at the same time.

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By Jen & Cory • May 28, 2025
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