Using Common Spending Habits to Accelerate Mortgage Repayment

Anita Groves • October 16, 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 me 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 money in 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.

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Kevin Roye

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Bank of Canada Rate Announcement Oct 29th, 2025

By Kevin Roye • 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

New to Credit? Let’s Build a Solid Foundation

By Kevin Roye • October 22, 2025

Starting from Scratch: How to Build Credit the Smart Way If you're just beginning your personal finance journey and wondering how to build credit from the ground up, you're not alone. Many people find themselves stuck in the classic credit paradox: you need credit to build a credit history, but you can’t get credit without already having one. So, how do you break in? Let’s walk through the basics—step by step. Credit Building Isn’t Instant—Start Now First, understand this: building good credit is a marathon, not a sprint. For those planning to apply for a mortgage in the future, lenders typically want to see at least two active credit accounts (credit cards, personal loans, or lines of credit), each with a limit of $2,500 or more , and reporting positively for at least two years . If that sounds like a lot—it is. But everyone has to start somewhere, and the best time to begin is now. Step 1: Start with a Secured Credit Card When you're new to credit, traditional lenders often say “no” simply because there’s nothing in your file. That’s where a secured credit card comes in. Here’s how it works: You provide a deposit—say, $1,000—and that becomes your credit limit. Use the card for everyday purchases (groceries, phone bill, streaming services). Pay the balance off in full each month. Your activity is reported to the credit bureaus, and after a few months of on-time payments, you begin to establish a credit score. ✅ Pro tip: Before you apply, ask if the lender reports to both Equifax and TransUnion . If they don’t, your credit-building efforts won’t be reflected where it counts. Step 2: Move Toward an Unsecured Trade Line Once you’ve got a few months of solid payment history, you can apply for an unsecured credit card or a small personal loan. A car loan could also serve as a second trade line. Again, make sure the account reports to both credit bureaus, and always pay on time. At this point, your focus should be consistency and patience. Avoid maxing out your credit, and keep your utilization under 30% of your available limit. What If You Need a Mortgage Before Your Credit Is Ready? If homeownership is on the horizon but your credit history isn’t quite there yet, don’t panic. You still have a few options. One path is to apply with a co-signer —someone with strong credit and income who is willing to share the responsibility. The mortgage will be based on their credit profile, but your name will also be on the loan, helping you build a record of mortgage payments. Ideally, when the term is up and your credit has matured, you can refinance and qualify on your own. Start with a Plan—Stick to It Building credit may take a couple of years, but it all starts with a plan—and the right guidance. Whether you're figuring out your first steps or getting mortgage-ready, we’re here to help. Need advice on credit, mortgage options, or how to get started? Let’s talk.