Ask Roesie

If your mortgage is renewing within the next 12 months, now is a good time to start thinking about it.

Your renewal isn't just a piece of paperwork to sign and send back, it's an opportunity to look at your current financial situation and ask whether your existing mortgage still makes sense for you.

Your income may have changed.
Your debt may have changed.
Your goals may have changed.

And the mortgage options available to you may have changed too.

Starting the conversation early gives you time to understand your options instead of making a decision at the last minute.

A mortgage renewal is more than a deadline.
It's a chance to make sure your mortgage still fits your life.

Summer is winding down, routines are coming back, and suddenly you can't ignore the things you may have put on the back burner financially.

Consider this your September financial reset:
- Check your credit report
- Check your credit card balances
- Review your monthly subscriptions
- Make a plan for any outstanding debt
- Start rebuilding (or building) your savings

You don't need a perfect financial plan. You just need to know what's happening with your money and make a few intentional decisions from there.

Who enjoyed it most, you or your credit card? 😂

Between vacations, eating out, weekend trips, activities, and all those little purchases that seemed harmless at the time, it's pretty easy to come out of summer with a higher balance than you planned.

If that's where you're at, don't panic. 🫪

The first step is simply knowing where you stand.

Take a look at your balances, interest rates, and minimum payments, then figure out what you can realistically put toward the debt each month.

You don't have to fix everything overnight.

A good financial reset starts with getting honest about where you are and making a plan for where you want to go.

Making the minimum payment on your credit card isn't a bad thing. In fact, making at least the minimum payment on time helps keep your account in good standing and protects your credit history from the negative impact of missed payments.

But here's what many Canadians don't realize:

Minimum payments are designed to keep your account current, but they aren't necessarily designed to help you get out of debt. If you're only paying the minimum each month, you could be carrying that balance for a lot longer than you think.

Meanwhile, interest continues to accumulate in the background, which means the longer you carry that balance, the more that purchase can ultimately cost you.

That's why two people with the exact same balance can end up in very different financial situations. One pays only the minimum and continues carrying the balance, while the other puts a little extra toward the debt whenever they can.

Over time, those extra payments can make a significant difference in how quickly you pay off the balance and how much you spend on interest.

Minimum payments help protect your credit.
Paying more when you can helps protect your wallet.

You paid your credit card in full.

So why didn't your score go up?

Because timing matters.

Many people don't realize that lenders report your balance to the credit bureaus at specific times during the month. Some lenders will report on the odd months and some report on the even months. If your balance is high when it's reported, your utilization ratio could be higher than you'd like, even if you pay it off a few days later.

Utilization simply means how much of your available credit you're using.

That's why some people make mid-cycle payments or keep balances low throughout the month.

Paying in full is still a great habit. Understanding when your balance gets reported is just another piece of the puzzle.