“Why” People Buy Residential Real Estate

Diane Buchanan • July 19, 2016

Yoda may have said, “…do or do not; there is no try”, but if you’re going to “do”— buy a home, for instance—for the love of Star Wars, know why you’re doing it.

Savvy business practice dictates that before making a decision you should know the “why?” Simon Sinek writes on this at length within his book Start with Why — certainly worth a look! This tool will serve to protect you from all kinds of pitfalls. It will allow you to objectively take stock of the situation, and it will (more often than not) keep you from entering into a scenario where you don’t have a clearly defined strategy/desired outcome.

Interestingly, the “why” in residential real estate has generally led buyers in one of two directions: either investment or lifestyle.

Investment

In a world where investing can be a tricky proposition at the best of times (not unlike walking into the MGM Grand), real estate, especially your primary residence, seems to be as close   to a sure thing as you can get. Property in Canada has pretty much always appreciated in value and depending where you live, it seems new records for house prices are being announced each quarter. It’s no wonder we feel home ownership is one of our fundamental rights as Canadians.

However as any good investor knows, past performance doesn’t indicate future results. People are starting to ask how long can this market last, as the media starts to circle back to the old “housing bubble” dialogue again. So is buying property solely as an investment a good idea today? Well, that really depends on your personal situation and is certainly worth a conversation. One we could have over a coffee!

If you are in a position to buy, and you have compared the cost of renting vs cost of the mortgage payment on a similar property, chances are you will find that buying is a good investment. The real kicker is that when (unlike traditional investments) you sell your home, the appreciation is tax-free money in your pocket.

Lifestyle

While the idea of buying in order to sell and earn a big profit is a fairly recent phenomenon, buying in order to achieve your lifestyle dreams is as old as the idea of home itself. This is what drove the entrepreneurial spirit of the wild west, and built the vast subdivisions of post-Second World War North America.

For most individuals, their home is their castle. It’s where they find privacy, solitude, relaxation, freedom, joy, pride, community, and the space to be themselves. It’s a pretty simple concept: people like to own their home.

When Worlds Collide

When considering your “why” of home buying, a lot of times it’s going to be a mixture of both investment and lifestyle. Obviously the house with the greatest potential for a large monetary return is the prudent, responsible choice. Location matters, neighbourhood matters, build matters, and potential renovations matter. You want to keep your property in great shape, as you would any investment!

But while you live there, pay down your mortgage, build equity, and see some long-term appreciation, you get to nap in your own comfy chair, in a room where you chose the paint colours.

This article was originally published in the July 2016 Dominion Lending Centres Newsletter.

DIANE BUCHANAN
 Mortgage Broker

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What Is a Cashback Mortgage and How Does It Work?

By Diane Buchanan • 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.

Bank of Canada Holds Rate at 2.25% — March 18, 2026

By Diane Buchanan • March 18, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For anyone watching the mortgage market — whether you're renewing, purchasing, or simply keeping an eye on borrowing costs — here's a breakdown of what was announced and what it may mean for you.