Finding Money For Closing Costs!

Luisa Hough • August 5, 2016

If you are planning on purchasing a property in the next couple of years, here is a really good video that will explain how you can find some extra money to put away into savings without impacting your lifestyle. Maybe you can even find enough money to cover the legal fees of buying your next home, that would be a nice challenge. 

Transcript

Hey guys welcome to Mostly Money. I hope you like what I’ve done with the place, and if not keep your comments to yourself.

So this week, I thought I’d talk about how you can find the money to save in the first place because I think a lot of people are on board with the idea that saving money is in fact a good idea but sometimes they struggle with finding that money to put away. So here’s one quick idea that I think anyone can put into practice, convert automatic expenses into automatic savings. Here’s what I mean by that, when it comes to automatic savings it works well for people because they forget how much they’ve been saving automatically but it’s the same with your expenses after a while you forget all the expenses that you’ve committed to. So there is the potential that you could reduce or eliminate some of these regular expenses that you haven’t looked at in a long time.

Here’s what you do, simply take a look at all your credit card statements and bank statements for the last two months. Go over it line by line and take a look at all the regular recurring automatic expenses and write them down. I’m talking Netflix subscriptions, TV packages, internet service, insurance premiums, subscriptions you have to magazines and newspapers anything that occurs on a regular basis on those statements. Write each of those items down,  next write down how much you’re spending per month for each of these items. The next thing you’re going to do is take each of these expenses and figure out if there’s any way to reduce or eliminate them. For example, Netflix subscriptions have three tiers: basic, standard, and premium .The premium services $11.99 per month and it gives you access to stream in ultra HD but if you don’t even have an ultra HD capable device you’re paying for something you don’t even need. Or maybe you can settle for regular HD and if you do that you can downgrade to the middle tier, the standard package which is $9.99 per month so that’s only $2 in savings but bear with me. Maybe it’s been a while since you first signed up for streaming service and back then you thought there’s no way i can get rid of cable just yet but fast forward two years and all you do now is Netflix and chill. Now is a great time to see if maybe you can reduce your cable package and easily save $30 per month or more.

When was the last time you looked at bank fees? If you haven’t looked at your banking package in the last couple of years, I’m going to bet it’s pretty easy to see that at least $5 per month. If you go through this simple exercise for all your regularly recurring expenses, I don’t think it would be a surprise to find that a lot of people can find $50 per month in savings, but now here’s the trick. Whatever savings you find you have to immediately commit to an automatic savings plan, for the exact same amount so if you find $50 in savings, you actually have to save the savings and put that $50 away into a savings account. You’re not going to notice a big change to your cash flow, but after 12 months of saving $50 per month that’s going to add up to $600! If you want to find a $1000 in annual savings you need to find $83.33 per month in expenses to cut out. The point is if you take a few hours to go through this exercise you can make a big positive change to your finances without having a big change to your lifestyle.

So to recap:

  1.  Make a list of all your automatic regularly recurring expenses.
  2.  For each of those items figure out if you can reduce or eliminate them.
  3.  Most importantly, whatever savings you find you have to direct either into a high-interest savings account or towards accelerating your high interest debt payments and that’s it!

If you’ve done this exercise before or you were inspired to do because you watch this video I would love to see what your results were. Let us know in the comments section down below how much money you freed up and thanks for watching!

Hey guys, thanks for watching Mostly Money. I hope you enjoyed today’s show don’t forget to subscribe to my channel by clicking on the button in the bottom right hand corner of your screen a
little thing that says Subscribe. There are lots of videos to explore my channel like this one. So, if you want to learn more about money and personal finance in a fun way check those out! If you have any questions for me you can reach out to me on Twitter at Preet Banerjee or you can leave your questions and comments down below in the comments section. That’s it for today see you next time.

Recent Posts

Fixed vs. Variable Mortgage Rates in Canada

By Luisa & Candice Mortgages • September 10, 2025
Fixed vs. Variable Rate Mortgages: Which One Fits Your Life? Whether you’re buying your first home, refinancing your current mortgage, or approaching renewal, one big decision stands in your way: fixed or variable rate? It’s a question many homeowners wrestle with—and the right answer depends on your goals, lifestyle, and risk tolerance. Let’s break down the key differences so you can move forward with confidence. Fixed Rate: Stability & Predictability A fixed-rate mortgage offers one major advantage: peace of mind . Your interest rate stays the same for the entire term—usually five years—regardless of what happens in the broader economy. Pros: Your monthly payment never changes during the term. Ideal if you value budgeting certainty. Shields you from rate increases. Cons: Fixed rates are usually higher than variable rates at the outset. Penalties for breaking your mortgage early can be steep , thanks to something called the Interest Rate Differential (IRD) —a complex and often costly formula used by lenders. In fact, IRD penalties have been known to reach up to 4.5% of your mortgage balance in some cases. That’s a lot to pay if you need to move, refinance, or restructure your mortgage before the end of your term. Variable Rate: Flexibility & Potential Savings With a variable-rate mortgage , your interest rate moves with the market—specifically, it adjusts based on changes to the lender’s prime rate. For example, if your mortgage is set at Prime minus 0.50% and prime is 6.00% , your rate would be 5.50% . If prime increases or decreases, your mortgage rate will change too. Pros: Typically starts out lower than a fixed rate. Penalties are simpler and smaller —usually just three months’ interest (often 2–2.5 mortgage payments). Historically, many Canadians have paid less overall interest with a variable mortgage. Cons: Your payment could increase if rates rise. Not ideal if rate fluctuations keep you up at night. The Penalty Factor: Why It Matters More Than You Think One of the biggest surprises for homeowners is the cost of breaking a mortgage early —something nearly 6 out of 10 Canadians do before their term ends. Fixed Rate = Unpredictable, potentially high penalty (IRD) Variable Rate = Predictable, usually lower penalty (3 months’ interest) Even if you don’t plan to break your mortgage, life happens—career changes, family needs, or new opportunities could shift your path. So, Which One is Best? There’s no one-size-fits-all answer. A fixed rate might be perfect for someone who wants stable budgeting and plans to stay put for years. A variable rate might work better for someone who’s financially flexible and open to market changes—or who may need to exit their mortgage early. Ultimately, the best mortgage is the one that fits your goals and your reality —not just what the bank recommends. Let's Find the Right Fit Choosing between fixed and variable isn’t just about numbers—it’s about understanding your needs, your future plans, and how much financial flexibility you want. Let’s sit down and walk through your options together. I’ll help you make an informed, confident choice—no guesswork required.

Your Guide To The A First Home Savings Account (FHSA)

By Luisa & Candice Mortgages • September 3, 2025
Dreaming of owning your first home? A First Home Savings Account (FHSA) could be your key to turning that dream into a reality. Let's dive into what an FHSA is, how it works, and why it's a smart investment for first-time homebuyers. What is an FHSA? An FHSA is a registered plan designed to help you save for your first home taxfree. If you're at least 18 years old, have a Social Insurance Number (SIN), and have not owned a home where you lived for the past four calendar years, you may be eligible to open an FHSA. Reasons to Invest in an FHSA: Save up to $40,000 for your first home. Contribute tax-free for up to 15 years. Carry over unused contribution room to the next year, up to a maximum of $8,000. Potentially reduce your tax bill and carry forward undeducted contributions indefinitely. Pay no taxes on investment earnings. Complements the Home Buyers’ Plan (HBP). How Does an FHSA Work? Open Your FHSA: Start investing tax-free by opening your FHSA. Contribute Often: Make tax-deductible contributions of up to $8,000 annually to help your money grow faster. Withdraw for Your Home: Make a tax-free withdrawal at any time to purchase your first home. Benefits of an FHSA: Tax-Deductible Contributions: Contribute up to $8,000 annually, reducing your taxable income. Tax-Free Earnings: Enjoy tax-free growth on your investments within the FHSA. No Taxes on Withdrawals: Pay $0 in taxes on withdrawals used to buy a qualifying home. Numbers to Know: $8,000: Annual tax-deductible FHSA contribution limit. $40,000: Lifetime FHSA contribution limit. $0: Taxes on FHSA earnings when used for a qualifying home purchase. In Conclusion A First Home Savings Account (FHSA) is a powerful tool for first-time homebuyers, offering tax benefits and a structured approach to saving for homeownership. By taking advantage of an FHSA, you can accelerate your journey towards owning your first home and make your dream a reality sooner than you think.

From Summer Shine to Fall Fine: Smart Home Projects to Tackle Before the First Frost

By Luisa & Candice Mortgages • August 28, 2025
As patios wind down and pumpkin spice ramps up, fall is the perfect reset for your home—and your homeowner game plan. These quick wins boost comfort, curb appeal, and efficiency now, and set you up for a low-stress winter (and a strong spring market). 1) Safety & “silent leak” checks (Weekend-ready) Clean gutters & downspouts. Add leaf guards where trees overhang. Roof scan. Look for lifted shingles, cracked flashings, or moss. Seal the shell. Re-caulk window/door trim; replace weatherstripping. Test alarms. New batteries for smoke/CO detectors; add one near bedrooms. Why it matters: Prevent water intrusion and heat loss before storms roll in. 2) Heat smarter, not harder Furnace/boiler tune-up and filter change. Smart thermostat with schedules and geofencing. Draft hunt. Foam gaskets behind outlets, door sweeps on exterior doors. ROI tip: Efficiency upgrades lower monthly bills and can improve lender ratios if you’re eyeing a refinance later. 3) Fall-proof your yard (so spring you says “thanks”) Aerate + overseed + fall fertilize for thicker turf next year. Trim trees/shrubs away from siding and power lines. Mulch perennials and plant spring bulbs now. Shut off/bleed exterior taps and store hoses to avoid burst pipes. 4) Extend outdoor season (cozy edition) Portable fire pit or propane heater + layered blankets. Path/step lighting for darker evenings (solar or low-voltage). Weather-resistant storage for cushions/tools to preserve value. Neighborhood curb appeal: Warm lighting and tidy beds make a big first impression if you list in shoulder season. 5) Water management = winter peace of mind Re-grade low spots and add downspout extensions (2–3+ metres). Check sump pump (and backup). Look for efflorescence or damp corners in the basement. 6) Mini-renos that punch above their weight Entry/mudroom upgrade: hooks, bench, boot trays, closed storage. Laundry room tune-up: counter over machines, sorting bins, task lighting. Kitchen refresh: new hardware, tap, and under-cabinet lighting in one afternoon. Budget guide: Many of these land under a micro-reno budget—perfect for a modest line of credit. 7) Indoor air quality tune-up Deep clean vents and dryers (including the rigid duct). Add door mats (exterior + interior) to catch grit/salt. Houseplants or HEPA purifier for closed-window months. Fast Timeline (pin this to the fridge) Late August–September Gutters/downspouts, roof/caulking, HVAC service, lawn care, plant bulbs, exterior tap shut-off plan, path lighting. October Weatherstripping/sweeps, fire pit setup, organize mudroom/garage, test alarms, sump check, downspout extensions, dryer vent cleaning. Financing smarter: make your mortgage work for your home Annual mortgage check-in. As rates, income, and goals evolve, a quick review can free up cash flow or open options for a small fall project budget. HELOC vs. top-up refinance. For bite-size projects, a HELOC can be flexible. For bigger renos you plan to pay down, a top-up refi might make more sense. Bundle & prioritize. Knock out the high-impact, low-cost items first (air sealing, safety, water management) before the cosmetic upgrades. Not sure which route fits your fall plans? We’ll run the numbers and map the best financing path for your specific budget and goals. Quick Checklist (copy/paste) ☐ Clean gutters/downspouts; add guards ☐ Roof & flashing visual check ☐ Re-caulk, weatherstrip, add door sweeps ☐ HVAC service + new filter ☐ Aerate/overseed/fertilize; trim trees; plant bulbs ☐ Path & entry lighting ☐ Drain/bleed outdoor taps; store hoses ☐ Downspout extensions; sump test ☐ Dryer vent cleaning ☐ Mudroom/garage organization ☐ Schedule mortgage review / discuss HELOC vs refi Ready to make fall your low-stress season? Book a quick fall mortgage check-up—15 minutes to see if a small credit line or a tweak to your current mortgage could cover your priority projects without straining cash flow.

Luisa & Candice Mortgages 

Contact Me Anytime!

The best way to get ahold of me is to submit through the contact form below. However feel free to give me a shout on the phone as well.

Contact Us