Are there huge advantages in investing?

Mortgage refinancing is a profitable option

You will be happy to know that your home has most likely increased in value since its purchase. This increase in equity can be used to help grow your investment portfolio or even allow you to invest in a multi-unit property. You can use your home equity to refinance your mortgage and secure a lower-interest loan. You can, in fact, borrow up to 80% of your property’s market value minus your mortgage balance.

Did you know that:

  • Refinancing is possible at any time.
  • For owner-occupied property of 1-4 units, up to 80% of the market value can be borrowed.
  • For multi-unit buildings of 5 units or more, up to 80% of the market value can be borrowed.
  • After you deduct the mortgage balance from that amount, the rest can be used to invest in something interesting.

Utilize your increased home equity for investment purposes

We recommend that you contact a professional recognized by the Autorité des marchés financiers (AMF). He or she will carefully help you to develop an investment strategy based on your particular needs and knowledge of the financial market. Your risk tolerance, available funds to invest, and investment goals will also be taken into consideration. Refinancing your mortgage to wisely purchase a diversity of financial products could result in a substantial and worthwhile profit.

Contribute to your RRSP

A refinancing strategy can be used to increase your RRSP contributions while also generating tax savings.

Accredited AMF professionals can readily counsel you on how to expand your RRSP portfolio.

Invest in rental property

Why wait for your mortgage term to conclude before deciding to buy rental property? As the years pass, your property will follow the real estate market trend and the net value will increase. Take advantage of this increase in equity to refinance you property and invest in a rental building.

You can find out from your accountant what operating costs are deductible, such as mortgage interests. Your mortgage broker would also be able to tell you about the benefits of specific products adapted to your investment projects.

Is refinancing the right choice for you?

Borrowing to invest could be a great strategy if done wisely and in accordance to your risk tolerance and your personal values on investment goals. Before making this financial commitment, you should thoroughly examine what you want to achieve, how it can be done and if you are willing to accept the outcome.

Feel free to contact us to help you choose the right investment. Our team of mortgage brokers will gladly explain to you the advantages of mortgage refinancing.