Don’t Get Squished: How To Survive The Sandwich Years

Katherine Martin • February 8, 2016

This article was written by Randy Cass of Nest Wealth and was originally published  on January 15th, 2016.

Your 40s and 50s bring a new, different kind of financial challenge.

In your 20s and 30s, you probably struggled with the question of how to make enough money. You skimped on luxuries to pay college loans, save for a house and to get yourself established in the right career.

In your 40s and 50s, the questions change. You hit your peak earning years (statistically, from about 40 to 55). Now, you’re not thinking as much about how to make money as about how to set your priorities. You have a mountain of obligations: Kids. Helping your parents. Saving for your own retirement. You’d have to be superman, or superwoman to meet all of these obligations as well as do what you like. How do you manage?

Everybody’s situation is a little different, but I advise people to use these four rules to help them survive the sandwich years. You’re the meat in the middle that has to keep everybody nourished.

1. Be an Over-Communicator When it Comes to Money.

The taboo around talking about money remains strong, and it was even stronger in the past. That means your parents might be particularly closed when it comes to sharing with you their money situation. But if you’re going to help them, you need to know what you’re up against. Make a list of questions in advance, including how much they have in savings, checking and investments accounts, and whether they have a will or an estate plan. Ask for a list of their account numbers.

With your kids, the most important thing to communicate is what the limits are and what you expect from them. Will they need to get a part-time job? How much should they expect to spend each month based on what you can provide? Will you pay for graduate or undergraduate education?

2. Put Yourself First, at Least Ahead of Your Kids.

When it comes to your retirement savings, you don’t have that much time left to compound your investments. And, there are other sources of support for your kids’ education: they can work, or get a loan.

3. Tap Professionals as you Need Them.

In your 20s and 30s, you didn’t need attorneys and wealth managers: You didn’t have legal issues or enough money.

I’ve seen many clients who were reluctant to seek outside advice, but now that you’re coping across generations, a reasonably priced professional could be worth his or her weight in gold.

4. Have a Cash Reserve.

I usually suggest that everyone have three-six months worth of cash on hand. But, in your sandwich years, turn the dial up toward six months worth. Somebody is going to need something: Either your parents, or your kids. Be prepared.

Randy Cass is the CEO, Founder, and Portfolio Manager at Nest Wealth.  Randy is committed to providing Canadians with a personalized and professional wealth management solution that lets them keep more of their money.

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


RECENT POSTS

Down Payment Options for Canadian Homebuyers

By Katherine Martin • February 25, 2026
For most Canadians, the down payment is the biggest hurdle to homeownership. A down payment is the initial amount you contribute toward your property purchase, while the lender covers the rest through a mortgage. By law, Canadian lenders can only finance up to 95% of a property’s value, which means you’ll need at least 5% down to qualify. If you’re putting down less than 20%, your mortgage must be insured through one of Canada’s three default insurance providers— CMHC, Sagen (formerly Genworth), or Canada Guaranty . This insurance comes at a cost, but it can be rolled into your mortgage amount. The less you put down, the higher the premium. Since saving a down payment can feel overwhelming, it helps to know the different sources you can draw from. Here are the most common options available to Canadian homebuyers: 1. Savings & Personal Resources The most straightforward source is your own savings. Lenders will ask to see a 90-day history of the funds in your account. Any large deposits outside of regular payroll must be explained with documentation—such as the sale of a vehicle or a transfer from an investment account. This requirement isn’t just red tape; it’s part of Canada’s anti-money laundering rules. 2. Proceeds from the Sale of a Property If you’ve recently sold another home, you can use the proceeds as a down payment on your new purchase. Proof of the sale—such as the final statement of adjustments from your lawyer—will be required. 3. RRSP Home Buyers’ Plan (HBP) First-time buyers can withdraw up to $35,000 each (or $70,000 as a couple) from their RRSPs to put toward a down payment under the federal Home Buyers’ Plan . The funds are withdrawn tax-free, but they must be repaid over a 15-year period. This is a popular option for buyers who have been steadily contributing to their retirement savings. 4. Gifted Down Payment With today’s housing prices, many buyers turn to family for help. A parent or immediate family member can provide a gift that makes up part—or even all—of the required down payment. The lender will require a signed gift letter confirming that the money is a true gift (with no repayment expected) and proof that the funds have been deposited into your account. 5. Borrowed Down Payment In some cases, you may be able to borrow your down payment. This option is usually available only if you have strong credit and sufficient income. The payments on the borrowed funds are factored into your debt service ratios, so affordability is key. Lenders typically use 3% of the outstanding balance when calculating the additional payment. The Bottom Line A down payment doesn’t have to come from just one source—it can be a combination of savings, gifted funds, RRSPs, or other resources. What matters most is being able to show where the money came from and that it meets lender requirements. If you’d like to explore your options or learn how much you might qualify for, it’s never too early to start the conversation. Connect with us today—we’d be happy to help you create a plan and take the first steps toward homeownership.

Stress-Testing Your Mortgage Affordability: Why It Matters

By Katherine Martin • February 18, 2026
Buying a home is one of the biggest financial commitments you’ll ever make. That’s why lenders want to be sure you can handle your mortgage payments—not just today, but also if interest rates rise in the future. This is where the mortgage stress test comes in. Many Canadians hear the term but aren’t entirely sure what it means or how it affects them. Let’s break it down in plain language. What Is the Mortgage Stress Test? The stress test is a rule introduced by the federal government that requires all mortgage applicants to qualify at a higher rate than the one they’ll actually pay. Currently, you must qualify at the greater of your contract rate + 2% or the benchmark qualifying rate (set by the Office of the Superintendent of Financial Institutions). For example: If your lender offers you a 5-year fixed mortgage at 5.25%, you must show you could still afford the payments at 7.25% . Even if rates don’t rise that high, the stress test ensures you won’t be overextended if they do. Why Does It Matter? The stress test protects both borrowers and lenders by: Preventing over-borrowing : It ensures you don’t take on more debt than you can realistically handle. Preparing for rate hikes : With interest rates fluctuating, it’s a safeguard against sudden increases. Strengthening financial stability : It lowers the risk of defaults, protecting the housing market as a whole. While it can sometimes feel like a barrier—reducing the amount you qualify for—it’s ultimately designed to keep you from becoming “house poor.” How Does It Impact Buyers? The stress test can significantly affect your homebuying budget. For example, without it, you might qualify for a $600,000 mortgage, but with the stress test applied, you may only qualify for $500,000. That doesn’t mean your dream of homeownership is out of reach—it just means you may need to adjust expectations or explore other strategies, such as: Increasing your down payment Paying down existing debts Considering alternative lenders who may have different qualification standards Why Work With a Mortgage Professional? Every lender applies the stress test, but not every lender views your application the same way. An independent mortgage professional can: Shop multiple lenders to find the best fit Run affordability scenarios at different rates Help you understand how much house you can truly afford—without stretching your finances too thin The Bottom Line The mortgage stress test isn’t meant to stop you from buying a home—it’s there to protect you from financial strain down the road. By understanding how it works and planning ahead, you can make smarter choices and buy with confidence. If you’re thinking about purchasing a home, refinancing, or simply want to know how the stress test affects your options, connect with us today. We’ll help you stress-test your budget and find the mortgage solution that works best for you.
© 2026 

Katherine Martin. All Rights Reserved.