Most homeowners and homeowners-to-be are aware of how expensive real estate has become (especially in the Toronto/GTA region) and for many folks real estate ownership has become unachievable. We regularly hear “If I hadn’t purchased this home 5 or 10 years ago, I wouldn’t have been able to purchase anything at current values.” News outlets regularly remind us of how real estate prices are not sustainable and how they just don’t make sense. The messages that you’re likely getting on the daily is that property prices are soaring and that it’s very difficult to qualify for mortgage financing to boot! The reality is that our real estate is not only available to Canadians’, but to the entire world as we are an open market. Canada is a very safe country to invest in and overall, Canada is one of the best – if not the best 🙂 – country in the world to live in! We are multi-cultural. We are diverse. We are friendly. And our country is beautiful, damn it! Who doesn’t want to live in Canada? Take it easy non-Canadian readers – it’s rhetorical!  Or, is it?

In the Toronto/GTA region we currently have a very low supply of available real estate for sale and together with an ever-increasing demand to own Canadian real estate, our home prices are just going to increase. #RealTalk

What does this mean to Canadian homeowners?

In terms of investment choices, this means that Canadian homeowners have made the best investment decision by buying real estate. It seems most are very pleased with their real estate investment and as a result many would like to purchase more property to help ensure stronger financial security for themselves and their family. But, given current mortgage lending guidelines and property prices, many cannot afford to purchase another property. Even those that are fortunate enough to refinance their current home to get enough of a down payment to purchase another property cannot qualify for another mortgage due to the mortgage Stress Test. I believe it’s safe to say that we feel stuck and that it’s frustrating as-all-get-out!

Not for anything (I was told yesterday that I am an honorary Italian so I had to bust that out!), but given the current low interest rates and the fact that home prices are expected to continuously increase, refinancing your current mortgage to further invest in your current property is a great option.


Mes amis (I’m actually French Canadian), there is almost always room for improvement to increase the value of your current home; for example you could finish the basement or build an addition to increase the square footage, new windows could be installed, a new roof could be built, etc. Keep in mind that building materials increase in cost just as your home increases in value – a lot more than our wages increase within the same time frame. If you have the equity to refinance and qualify under the Stress Test guidelines, today would definitely be the perfect time to do so.

If you want to further increase your current real estate wealth now or in the near future, it’s best to refinance your mortgage rather than using high interest rate products like credit cards and lines of credit to complete any renovation/improvements. Credit cards carry an average interest rate of 18% and lines of credit carry an average interest rate of 8%. Every year or every month that goes by that your credit cards are not paid off it comes at a cost of 18% in interest versus less than 4% in interest on your mortgage.

Perhaps your goal is to both increase your real estate wealth AND pay off high interest debts. #Goals #BeDebtFree

If you would like to chat through potential refinance options, give us a call or shoot us an email anytime!

All the best!


Roy is our Operations Manager and Mortgage Specialist.  He loves mostly all forms of music and can eat his weight in his mom’s Chili. And butter tarts. Srsly, have you tried the butter tarts?  Don’t get him started…