When Life Throws You A Curveball

Sabeena Bubber • November 2, 2017

While America may believe they Run on Dunkin' Donuts, I'm pretty sure they actually run on credit and debt. And the truth is, Canada isn't that far behind. Debt is not only culturally acceptable, but oftentimes the norm. Our governments borrow money in order to fulfill campaign promises and to fund various programs (legitimate and [arguably] otherwise), small business owners borrow money, and on a micro level, families borrow money for houses, cars, and things. It almost seems like some level of debt accumulation is inevitable.

Debt can be split into three categories, good, bad, and ugly debt. 

Good debt would include any debt that is used to build long term equity. Securing a mortgage to purchase your home falls in under this category. So could financing a rental property. An education is certainly something that people invest in, oftentimes at a considerable expense, but as this debt is used to increase earning power, it's a good debt.

Bad debt would include anything you purchase on credit, that doesn't appreciate in value, or allow you to earn more money. Bad debt is when you spend money you don't have on a credit card or line of credit, and choose to pay it off in instalments (sometimes at considerable interest). 

Ugly or unforeseen debt is what I'm here to discuss, the debt that shows up when life throws you a curve ball. It's the debt you aren't prepared for. Regardless of how much good or bad debt you have accumulated, in order to have that debt in the first place, a lender somewhere has considered you a good credit risk. This means you make your payments, and you're reliable. Perfect. But what happens when life happens and you aren't able to make your payments? 

Let's say that you get in a car accident and can't go to work, a family member falls ill and you are there to take care of them, you lose your job due to corporate downsizing, you take a risk with your own business and you fall short, what then? Ultimately, if you end up losing your ability to make timely payments on your debt, things can snowball really quickly, your good and bad debt become really ugly debt.

There is hope!

If you're like most established Canadians, your house is your biggest asset. So if life does throw you a curveball, and you don't qualify for a mortgage refinance to access some of your equity, this is where the CHIP reverse mortgage comes in. A CHIP Reverse Mortgage enables homeowners aged 55 and older to access their home equity without making any monthly repayments. So if you've got debt to pay off, not only can you consolidate it with a CHIP reverse mortgage, you aren't required to make any payments. 

My name is Sabeena Bubber and I'm a certified reverse mortgage specialist. Please call me anytime, Sabeena Bubber at 604-862- 8526 or visit myreversemortgage.ca for more information on how a CHIP reverse mortgage could work for you! 

SHARE THIS ARTICLE

RECENT POSTS

How to Qualify for a Mortgage After Bankruptcy in Canada

By Sabeena Bubber • April 8, 2026
Financial setbacks happen. Bankruptcies and consumer proposals are more common than most people realize—and they don’t define your future. Going through one doesn’t mean homeownership is off the table forever. It simply means lenders want to see that you’ve taken control, learned from the past, and built a stronger financial foundation moving forward. What lenders look at after a bankruptcy or consumer proposal How long it’s been since your discharge Your discharge date matters. For lenders, this is your reset point. There’s no law that says you must wait a specific amount of time before applying for a mortgage, but the longer your track record after discharge, the stronger your application becomes. What matters most is how responsibly you’ve managed your finances since then. Your credit rebuild Re-establishing credit is critical. After discharge, most people start with a secured credit card and use it consistently and responsibly. To be considered fully re-established, lenders typically want to see: Two active trade lines At least two years of clean payment history Credit limits of around $2,500 on each No late or missed payments Your down payment or equity The more money you can put down—or the more equity you have when refinancing—the lower the risk for the lender. A stronger down payment often opens the door to better terms and more lender options. Your debt service ratios Lenders will also look closely at how much of your income goes toward housing and other debts. The stronger your income relative to your monthly obligations, the easier it is to qualify. Conventional vs. insured mortgage options To access the most competitive mortgage products, lenders typically want to see: At least two years plus one day since discharge Fully re-established credit Minimum down payment requirements met Mortgage insurance in place if your down payment is under 20% (through CMHC, Sagen, or Canada Guaranty) Total debt obligations generally not exceeding 44% of your gross income Alternative lending options Not every situation fits neatly into a bank’s box—and that’s where alternative lending can help. Independent mortgage professionals work with both traditional and alternative lenders, including those who specialize in complex financial situations. These lenders look at the full picture: equity, income stability, and your plan moving forward. While rates and terms may not be as competitive as prime lending, alternative financing can be an effective short-term solution—especially if you need a mortgage before your credit is fully rebuilt. Let’s talk about your next step Whether you’re planning ahead for the best possible mortgage—or need a solution sooner rather than later—there are options available. If you’d like help mapping out a clear path forward, reach out anytime. I’d be happy to review your situation and help you build a plan that gets you back into homeownership with confidence.

Need Funds Between Buying and Selling? Here’s How Deposit Loans & Bridge Financing Help

By Sabeena Bubber • April 1, 2026
You’ve outgrown your current home. It no longer fits your life, so moving makes sense. And you’re not interested in juggling two properties. Selling first and buying something new feels like the right move. Ideally, you want possession of the new home before leaving the old one. That overlap makes moving easier, reduces stress, and gives you time to paint, renovate, or settle in before the boxes arrive. But there’s a common challenge. What if the down payment for your next home is tied up in the equity of the one you’re selling? That’s where bridge financing comes in. How bridge financing works Bridge financing temporarily unlocks equity from your current home once it has a firm sale . It bridges the gap between selling your existing property and purchasing your next one, allowing you to use that equity toward your down payment. What about competitive markets? In a hot market, a strong offer often means a larger deposit . If you don’t have that cash sitting in your account, but you do have equity, a deposit loan can help you compete with confidence. The non-negotiable requirement To qualify for bridge financing or a deposit loan, your current home must have a firm, unconditional sale . No firm sale = no bridge or deposit loan. Lenders need certainty to calculate available equity and manage risk. Bottom line A firm sale is the key that unlocks bridge financing and deposit loans. If you’re planning a move and want to understand how these options could work for you, let’s talk. I’m always happy to walk you through your options and help you plan your next step with confidence.

Your Guide to Real Estate Investment in Canada

By Sabeena Bubber • March 25, 2026
Your Guide to Real Estate Investment in Canada Real estate has long been one of the most popular ways Canadians build wealth. Whether you’re purchasing your first rental property or expanding an existing portfolio, understanding how real estate investment works in Canada—and how it’s financed—is key to making smart decisions. This guide walks through the fundamentals you need to know before getting started. Why Canadians Invest in Real Estate Real estate offers several potential benefits as an investment: Long-term appreciation of property value Rental income that can support cash flow Leverage , allowing you to invest using borrowed funds Tangible asset with intrinsic value Portfolio diversification beyond stocks and bonds When structured properly, real estate can support both income and long-term net worth growth. Types of Real Estate Investments Investors typically focus on one or more of the following: Long-term residential rentals Short-term or vacation rentals (subject to local regulations) Multi-unit residential properties Pre-construction or assignment purchases Value-add properties that require renovations Each type comes with different financing rules, risks, and return profiles. Down Payment Requirements for Investment Properties In Canada, investment properties generally require higher down payments than owner-occupied homes. Typical minimums include: 20% down payment for most rental properties Higher down payments may be required depending on: Number of units Property type Borrower profile Lender guidelines Down payment source, income stability, and credit history all play a role in approval. How Rental Income Is Used to Qualify Lenders don’t always count 100% of rental income. Depending on the lender and mortgage product, they may: Use a rental income offset , or Include a percentage of rental income toward qualification Understanding how income is treated can significantly impact borrowing power. Financing Options for Investors Investment financing can include: Conventional mortgages Insured or insurable options (in limited scenarios) Alternative or broker-only lenders Refinancing equity from existing properties Purchase plus improvements for value-add projects Access to multiple lenders is often crucial for investors as portfolios grow. Key Costs Investors Should Plan For Beyond the purchase price, investors should budget for: Property taxes Insurance Maintenance and repairs Vacancy periods Property management fees (if applicable) Legal and closing costs A realistic cash-flow analysis is essential before buying. Risk Considerations Like any investment, real estate carries risk. Key factors to consider include: Interest rate changes Market fluctuations Tenant turnover Regulatory changes Liquidity (real estate is not easily sold quickly) A strong financing structure can help manage many of these risks. The Role of a Mortgage Professional Investment mortgages are rarely “one-size-fits-all.” Lender policies vary widely, especially as you acquire more properties. Working with an independent mortgage professional allows you to: Compare multiple lender strategies Structure financing for long-term growth Preserve flexibility as your portfolio evolves Avoid costly mistakes early on Final Thoughts Real estate investment in Canada can be a powerful wealth-building tool when approached with a clear strategy and proper financing. Whether you’re exploring your first rental property or planning your next acquisition, understanding the numbers—and the lending landscape—matters. If you’d like to discuss investment property financing, run the numbers, or explore your options, feel free to connect. A well-planned mortgage strategy can make all the difference in long-term success.

LET'S TALK

SABEENA BUBBER

MORTGAGE BROKER | AMP

Contact Us