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Is Your Home an Asset or a Liability?

Your Mortgage Should Be Part of Your Overall Financial Plan

Your home is the biggest purchase you will ever make. It should also be a financial asset, with your equity growing over time as you pay off your mortgage and the property increases in value.

However, there can be times when your home becomes a liability:

  • Neglected repairs or maintenance. When your property isn’t in top form, it’s not worth top dollar. A house that needs a lot of work can also be more difficult to obtain financing for when your mortgage term is ending. Our team has helped many clients in these kinds of situations, such as Liam who found himself mid-renovation and out of funds.
  • Deferred mortgage payments. When you defer your mortgage payments, your principal stays the same and the balance continues to accrue interest. Over a short period of time, the impact on your finances will be minimal. However, if you continue to defer payments you may find yourself falling behind on your financial goals.

You can balance the possibility of your home becoming a liability with a financial plan. That’s where our trusted partners at BMI Insurance comes in. We work closely with their team to help get you into your dream home while ensuring you are set to reach your future financial goals.

Balancing Your Mortgage and Investments: A Client Story

When we first met Sarah, she was in the final months of a Consumer Proposal and had just received an inheritance from the passing of a relative. Her partner, Tyler, already owned a condo, but they were ready to take the next step in their lives together and buy a family home.

Although Sarah could have used her inheritance for a substantial down payment or outright purchase of a property, she instead chose to take a more balanced approach to the use of that money. A portion of the funds went towards paying out her existing debt; she set aside enough for a 50% down payment on her new home with Tyler; and the remainder was earmarked for investments to grow her wealth and ensure more financial security in the future.

Sarah and Tyler found a newly built home in a neighborhood they loved, and thanks to the down payment from Sarah’s inheritance the Auxilium Team was able to arrange a great mortgage for them despite previous blips on their credit reports. They chose to keep Tyler’s existing condo as a rental property to increase their monthly cash flow and build their assets.

Sarah worked closely with our trusted partners to compare her existing TFSA and RRSP investments with the options available through other carriers. As a team, we were able to find products that will yield greater returns for Sarah’s long-term retirement planning, while still leaving some of her investments accessible in case she needs those funds in the next few years. We’ll also check in with Sarah and Tyler each year to ensure that all their accounts with us continue to meet their financial goals.

Auxilium covers you “from A to Z” by taking a global and wholistic approach to your finances. When you’re working with us for your mortgage, you also have access to our referral network of trusted partners for home insurance, business insurance, life or disability insurance, or investments. We want to make sure the solutions we find are the right ones for you! This approach is one of the reasons Sarah and Tyler (along with hundreds of other people) have given us a 5-star review.

Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.


This post reflects the best available information at the time of writing/last update. In order to ensure that you have the most up-to-date information, contact us to confirm the details for your specific situation.

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