who-are-the-first-time-home-buyers?
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Who Are the First-Time Home Buyers?

BySharon Jung

Buying Through the Uncertainty Among the first-time home buyers, 67% felt uncertain or had concerns during their home-buying journeys. Their concerns ranged from living with high monthly carrying costs to interest rate increases, as 63% are already overpaying for a home worried about their future finances and mortgage payments. This fear may explain why more than half of these first-time buyers opted for co-ownership: purchasing a home with their parents, siblings, or even their friends instead of their partner or spouse. Most FTHBs believe that they have received the best mortgage for their needs. 56% chose a fixed mortgage, leading to 72% saying they are comfortable with their mortgage debt. 79% believe that homeownership is a good long-term financial investment, and 71% are confident that the value of their home will appreciate in the next year. Gifts and Incentives: A good 41% of FTHBs have received monetary gifts or inheritance towards their down payments, averaging $74,570; however, 80% of those who received a gift stated that they would have proceeded to purchase a home even without one. This means that purchasing a home would have still been within their means, whereas only 65% have paid the maximum of their budget. Other incentives that have helped first-time buyers include utilizing savings from a tax-free home savings account (FHSA) and savings outside of a registered retirement savings plan (RRSP). A Home Buyer’s Plan (HBP) is an FTHB program that enables a withdrawal of up to $60,000 from an RRSP to purchase a home, requiring repayment of that amount over 15 years. The federal government has also recently released a new GST relief program for FTHBs to receive a full GST rebate on new homes valued at up to $1 million and a phased reduction between $1 million and $1.5 million, which means FTHBs can save up to $50,000 on taxes. Unexpected Costs: Even though a majority of first-time home buyers discussed potential unexpected homebuyer costs with their mortgage professional before purchasing, 44% still incurred these unexpected costs. From lawyer or notary fees to home inspection and immediate repairs, these costs may have been anticipated and factored into the budget if they had known what to expect. 56% of FTHBs utilize social media, including YouTube, Facebook, and Instagram, to receive information regarding mortgage options. This is where it is crucial to do your homework to research and fact-check the information you are receiving! Much of the news and circulating information can be stretched, misrepresented, or not offer the whole truth.

snowbirds-leave-the-us.:-where-will-they-fly-to-now?
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Snowbirds Leave the U.S.: Where Will They Fly to Now?

BySharon Jung

Canadians account for the largest group of international tourists in the United States, and 40% of all foreign visitors to Florida alone. In 2024, they spent an estimated $20.5 billion USD stateside, which is why, according to the U.S. Travel Association, even a 10% drop in Canadian visitors could result in a loss of $2.1 billion in spending and 14,000 jobs. But the annual spending and visitation are rapidly changing, and it’s no longer just about boycotting American products or avoiding U.S. politics. The deepening rift between Canada and the United States—driven by policy shifts, travel restrictions, and economic uncertainty—has many snowbirds rethinking their winter plans. Increasingly, they’re packing up, selling off their U.S. real estate, and looking to invest further south for their seasonal migrations. What Is a Snowbird? Commonly associated with Canadians, “snowbirds” are retirees over the age of 65 who spend many months (approximately up to 6 months) out of the year in warmer climates, typically during the harsh winter months. They may rent or, more often, own a property, such as a vacation home, to stay in. Why Are Snowbirds Leaving the U.S.? For decades, Canadian snowbirds have flocked to the United States to escape the winter months and have become the largest group of foreign investors in U.S. real estate. Approximately 1 million Canadians are reported to own vacation properties in the country, with the most in Florida (27%), California (11%), and Arizona (11%). Other popular states include Texas, Hawaii, Louisiana, South Carolina, and New Mexico, reflecting the widespread appeal of warm-weather destinations. The Canadian Snowbird Visa Act was initially proposed in June 2019, allowing snowbirds over the age of 50 to extend their visitation from 182 days (nearly 6 months) to 240 days (8 months) per year. However, this bipartisan bill has yet to be passed by the American Congress. Meanwhile, Canadians and foreign visitors to the United States had to wait for the proposed Trump administration’s travel policy, which was officially enacted on April 11, 2025. While Canadian nonimmigrants may be exempted from registering their fingerprints at the border, they must still report to the United States Citizenship and Immigration Services (USCIS) if their intended visit is over 30 days, under this new policy. The antagonism around the visa policy, combined with increasing scrutiny and bureaucratic hurdles, has made long-term planning uncertain for many retirees. Beyond visa hurdles, the Canada-U.S. tax treaty that helped avoid double taxation for many snowbirds may not be enough incentive for them to invest, as the ongoing tariff war raises questions about the long-term viability of U.S. real estate. The political climate has even worsened with controversial rhetoric, including suggestions of America annexing Canada, which has offended many Canadians and further chilled cross-border sentiment. Unsurprisingly, more and more snowbirds are opting to sell their American properties to fly back home or invest elsewhere. This trend is now visibly disrupting real estate markets in snowbird-heavy regions like Florida and Arizona, which are experiencing a sharp increase in home listings from Canadian owners. Where Will Snowbirds Venture Next?

what-every-first-time-home-buyer-should-know
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What Every First-Time Home Buyer Should Know

BySharon Jung

The Recipe You Need to Succeed Attend our seminar where we’ll give you real answers, home-buying strategies, and a recipe for success proven by our clients. We will provide you with a step-by-step guide with everything you need to know when it comes to buying your first home. Even if you are not a first-time buyer, all buyers are welcome! Our First-Time Home Buyer Seminar will offer you the perfect roadmap for your buying journey, where you can expect: In-depth insight into market trends A comprehensive understanding of the buying process, including where to start Clarity on what you can afford and how to prepare your finances At the end of the seminar, you will also connect one-on-one with our award-winning agents. With your dedicated guide, you can ask all your questions and receive valuable tips that reflect your unique circumstances. Whether you are looking to buy a pre-construction or a resale property, our GTA-Homes agents are prepared to walk with you while connecting you with other reliable real estate professionals you will need to have on your team. Decision to Rent or Buy Although buying a home may seem out of reach, most renters don’t realize how much money they’re actually spending each year on someone else’s mortgage and profit. Owning a home almost always comes out ahead because your monthly rental payments could have been helping you build equity in your own home instead! It also helps to factor in tax benefits, property appreciation, and other incentives when you buy. Let’s compare the numbers to give you a clear picture. If you are currently renting at $2,500 per month, plus about $130 in utilities, you’re paying $2,630 monthly or $31,560 a year. This money will only cover your cost of living and won’t do much else for you. It primarily goes toward paying off your landlord’s mortgage. Now let’s look at the monthly carrying costs of owning your own home. Let’s say you purchased a $500,000 home with a 20% down payment to avoid additional mortgage insurance fees and took on a fixed 30-year mortgage at 4% interest. Your monthly payments will need to include your mortgage payments, property taxes (1% of the property’s value annually), home insurance, and utilities.

the-truth-about-real-estate-in-the-news
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The Truth About Real Estate in the News

ByRose Ho

Myth #2: Put Less Than 20% Down So Banks Will Give You Better Rates Some mortgage brokers and lenders have perpetrated an enormous lie. They have suggested that if buyers purposefully use a smaller-than-average down payment and pay for CMHC mortgage insurance (which is mandatory for down payments under 20%), banks will perceive these loans as “safer” and offer these buyers a much lower interest rate on larger loan-to-value ratios. This is wrong. Banks are not solely looking at down payment sizes to determine the lending rate they will offer you. They look at your income, credit history, and debt-to-income ratio, getting a comprehensive view of your financial status and ability to repay your loan over time. Any “risk” they face of you being unable to pay your loan is offset by the home value itself, not by CMHC insurance. If you don’t pay your mortgage, they have the right to sell your property under a power of sale and recoup their losses. In this way, the bank is always protected from default risk. If you do not need to pay for CMHC insurance, avoid it because it will add to your monthly costs and provide no additional benefit to you. You can do the math: if you were to put less than 20% down, you would have to pay CMCH insurance, which ranges from 0.60% to 4.5% plus tax, which adds thousands of dollars to your housing costs. The only reason someone would push you to put less than 20% down when you have the funds to put 20% down is that they are getting some sort of benefit from it, not you. Mortgage brokers are paid based on the loan size you sign up for, so if you request a 90% loan instead of an 80% loan on a $500,000 property, they will get paid more. The lender, too, will gain more over time as you pay them more interest on your larger loan. Despite this misinformation controversy, the CMHC does offer a great program to help buyers who have less than a 20% down payment break into the market earlier. However, you should use it with a full understanding of the long-term costs. Ultimately, if you have more money to put down, you should definitely do it instead of paying extra fees like CMHC insurance. However, there is one important exception to note. You can get lower rates for investing in multifamily homes (with 5 units or more) that are insured by the CMHC. Typically, for buildings with more than 5 units, you would need a commercial mortgage and a larger down payment, like 25% down, but the CMHC offers preferred rates for eligible multifamily home projects. One specific program, the CMHC MLI Select Program, allows you to receive a lower interest rate than regular residential and commercial rates with less money down while still giving you the power of leverage. This program is available to help build the type of multifamily housing Canada needs the most: affordable rentals, student housing, and retirement housing. The CMHC MLI Select Program allows you to invest in multifamily buildings with only 5% down and offers extended amortizations for up to 50 years and reduced interest rates.

buying-with-5%-down:-what-you-gain-(and-what-you-give-up)
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Buying with 5% Down: What You Gain (and What You Give Up)

ByTeam Breaking Bank

You’ve got two choices: Save for years to hit 20% down. Buy with 5% down and get in the market now. Both come with baggage. One delays your wealth. The other costs more to build it. If you’re staring down today’s home prices thinking “I’ll never save enough”—you’re not alone. But before you jump into a 5% down mortgage, understand this: Getting in early isn’t free. It just feels like it. Let’s break down exactly how low-down payment mortgages work, where they help, and where they bite you. ⚙️ The Mechanics: How 5% Down Works in Canada Here’s what CMHC and the other insurers allow: Under $500,000? Minimum 5% down. $500K to $999K? 5% on the first $500K + 10% on the rest. Up to $1.5 million? As of December 15, 2024, you can now qualify for an insured mortgage—with the same down payment structure: 5% on the first $500K and 10% on the portion between $500K and $1.5 million. This new $1.5M cap opens the door for more buyers in high-cost markets to enter the game with a smaller upfront investment. And if you put down less than 20%, you’re taking on default insurance—a premium tacked onto your mortgage. That cost? Between 2.8% and 4% of the loan, depending on your down payment. And yes, it’s usually rolled in, which means you pay interest on the insurance too. ✅ What You Gain by Putting Down Less 1. Faster Market Access Waiting to save 20% while home prices climb is like trying to fill a leaky bucket. A 5% down payment gets you in the game now, not 3 years from now when prices are higher and you’re still behind. 2. Insured Mortgage = Lower Rates Lenders love insured mortgages. The risk’s off their books. That means they’ll often give you better interest rates than someone with 20% down and no insurance. 3. Optionality Buying with 5% down doesn’t lock up your liquidity. You keep cash in the bank. And if life happens—job change, relationship shift, whatever—you’re not deep underwater. ❌ What You Sacrifice (and It’s Not Small) 1. Higher Monthly Payments You’re borrowing more. And adding insurance to your loan. That’s a double whammy. The monthly hit is higher—no way around it. 2. More Interest Over Time Bigger mortgage = more interest. Even if your rate is sharper, the total interest paid is higher because your loan balance is bloated. 3. Slower Equity Buildup In the first few years, you’re barely touching principal. Most of your payment feeds the bank. Add that to the higher balance and you’re building wealth at a crawl. 4. Less Refinance Flexibility Insured mortgages restrict your options. Want to pull equity out later? Refinance with a different lender? Good luck. Your flexibility is capped unless you re-qualify and re-insure (if even allowed). 📈 The Power of Leverage: Turning 5% into 20% With 5% down, you’re getting 20x leverage on your money. That means for every 1% the property value increases, you get a 20% return on your initial investment. Let’s break it down: Purchase Price: $300,000 Down Payment (5%): $15,000 If the property value rises 1% to $303,000, that’s a $3,000 gain. Return on your $15,000 down payment? 20% ($3,000 ÷ $15,000) This is one of the reasons homeownership often outpaces renting in the long run. Even modest price increases can significantly boost your equity when you’re highly leveraged. Think about it: If you had to save 100% of the cash to buy the property, do you realistically believe you would ever be able to own a home? Depending on market conditions, the longer you wait, the more ground you could lose. Most people think mortgage default insurance only protects the lender. But it can also protect you. Some insurers offer support programs to help homeowners through temporary financial troubles—like a job loss, illness, divorce, or natural disaster. These programs typically work by: Offering payment deferrals during a tough period Extending amortization periods to lower payments Setting up shared payment plans (where the insurer covers part of the mortgage payment) Adding missed payments to the loan balance (capitalizing arrears) Restructuring mortgage terms to fit a new financial reality For example, Sagen’s Homeowner Assistance Program (HOAP) has helped over 63,000 Canadian families avoid losing their homes, with a success rate of over 90% . Knowing that your default insurance can act as a safety net if unexpected hardships arise can provide extra peace of mind. 🎯 The Real Question Do you want in now—knowing the trade-offs—or do you want to wait, save more, and potentially miss out? There’s no right answer. If your income is stable, you’re staying put for 5+ years, and you’ve stress-tested your budget? 5% down might be a smart move. But if you’re stretching, or banking on appreciation to bail you out? Be careful. A hot market can cool. And higher payments don’t feel so hot when rates jump or life gets messy. Final Take Buying with 5% down is like using a credit card to grab a seat at the wealth table. You’ll pay for it—but you’ll own something. It’s not free. It’s not cheap. But it might be smarter than waiting—depending on your market, your goals, and your risk tolerance. So don’t ask, “Can I buy with 5%?” Ask: “What will it cost me if I don’t?” Then run the numbers. Talk to a real mortgage strategist. And make

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What to Do if You Overpaid for a Property

ByRose Ho

With a housing market that has changed drastically in the last few years, many Canadians who purchased homes in 2021 and 2022 found themselves having to close on devalued properties in 2024 and 2025. So, many have asked, “What can you do if you’ve overpaid for a property?”  Before we answer this question, let us first understand how and why buyers overpay for properties. Common Traps Of Overpaying It can be easy to overpay for real estate if you are unfamiliar with the market, have an inexperienced agent, or make critical mistakes in the buying process. Here are some of the most common reasons why someone may end up purchasing a property above market value: Lack of market context: If you purchase without researching the comparable prices of homes in the area or knowing which way the market is heading, you may not recognize when a home is unreasonably priced. Emotional decision-making: Some buyers choose to go with their “gut feeling,” or allow the fear of missing out in a hot market or the excitement of a bidding war push them to make a quick buying decision instead of a well-considered purchase. Confusion about the proper process: Mistakes like skipping the home inspection or disregarding your budget parameters or closing costs can lead to higher costs in the future. The most effective way to avoid these errors is to get professional guidance right at the start. It is of utmost importance to find an experienced and trustworthy realtor, like our award-winning, full-time agents at GTA-Homes, who can help you navigate the current market and make a decision that will serve your long-term goals. They also provide their clients with a Competitive Market Analysis (CMA) to help them compare the pricing of similar homes in the neighbourhood they are looking for. Why Are People Overpaying Now? A trend that has become more common in the last year or two is a direct result of a post-pandemic market spike, buyers riding a wave of emotions, and, most unfortunately, risk-taking speculation. For example, when a woefully unprepared buyer closes on an overpriced property, they may have had to drum up more funds to complete the transaction. This is because the presale price may have been something like $1.5 million when they signed the purchase and sale agreement in 2021, as prices were climbing precipitously. Then, the economy changed. Inflation shot up, and interest rates were increased to combat the effects. Subsequently, the property value dropped to $1.3 million in 2024 when it finished construction, and it became time to close. To make matters worse, some buyers did not factor the closing costs into their budget. Don’t forget that closing costs for pre-construction can add 8% to 10% to the purchase price. Mortgage lenders would no longer cover the $200,000 difference in the price, therefore the buyer would have to cough up the extra $200,000 by doing something drastic and unplanned, like selling another property (in a depressed market, no less), renting out the new unit instead of moving in, or borrowing funds from other sources (at a higher interest rate, too). Therefore, immediately after closing on a too-costly property, a buyer will likely have some new financial considerations, which may lead them to tighten their budget and follow the movements of the housing market carefully. What should these over-payers do? What Not To Do: Panic and Sell Immediately Buyers may be tempted to sell their new homes immediately and at a steep loss, out of fear that prices will continue to drop and they will only lose more money over time. However, they should keep in mind that these adverse events are temporary. The market will recover later, and if you sell now, you will not be able to recoup your losses in the future. What To Do: Hold As Long As You Can You may need to scrutinize your current finances and create a new budget. You can increase your cash flow by renting out your home, exploring secondary jobs, and cutting unnecessary costs or high-interest borrowing. You may also look for opportunities to refinance under better terms, consult financial advisors who can help you find creative solutions, and prepare other options. The good news is that Canadian real estate is resilient and offers long-term rewards for those who buy and hold for many years. In 5 years from now, 10 years from now, and 20 years from now, your real estate investment will have increased in value. This projection is more certain, based on the current low pre-construction sales, which will directly translate into less construction activity and fewer new homes being delivered. This means a critical strain on supply in the face of upcoming demand and ongoing immigration. Lower supply means higher rent prices and property values. Projected New Home Completions (Based on Sales Activity) Year New Homes 2025 38,768 2026 18,812 2027 18,221 2028 9,440 2029 2,000 Ride out the wave and remember that the market will always go through cycles where buyers will have the upper hand, then sellers, then buyers again. All you need to have is patience, and your property value will grow. To avoid overpaying altogether, connect with the real estate experts at GTA-Homes. Our top-performing team of professional agents are dedicated to long-term client success, whether you’re buying, selling, or investing in real estate. Countless homeowners have relied on our market expertise and educational

does-canadas-declining-birth-rate-mean-more-housing-availability?
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Does Canadas Declining Birth Rate Mean More Housing Availability?

ByRose Ho

With the Canadian real estate market currently facing historically low sales activity, dropping property values, and growing inventory, many people have deluded themselves (and even some others) into believing that this is how things will be from now on and for many years to come. They want to think that we will somehow witness a total reversal of decades of home price increases until we start seeing houses worth 20% of what they cost today. Some pseudo-economists have even gone so far as to point at Canada’s declining birth rate, which is slated to stop keeping pace with our increasing death rate in 2030, as proof that our housing supply surplus will be even greater than it is currently. But this is a foolish, inaccurate, and short-sighted way of thinking. So today, we will be busting the myth that Canada’s declining birth rate will mean more housing availability and affordability. The Truth About Supply and Population First of all, Canada’s property values have been increasing steadily for decades, despite short-term dips and spikes. The real estate market is cyclical, and we have seen market highs tempered by market lows and vice versa. In the long run, however, homes are absolutely essential and prove their resilient value over long periods of time. The temporary jump in Canadian housing prices in 2022 may have resulted in a harsh correction in 2025, but we can still expect the market to readjust itself later and resume its steady decades-long climb based on how prices have increased for nearly 50 years. Secondly, Canada’s population and economic growth have always relied heavily on immigration, which is still healthy and robust—to the point that we have needed to lower our previously too-ambitious immigration targets to achieve sustainable growth. Our old 2023-2025 immigration plan brought in around half a million people annually, which caused a lot of stress to the housing market and infrastructure, as cities and provinces were unprepared for such a high rate of population growth. In fact, Canada hit a population milestone of 40 million people in 2023! A serious adjustment was required, which is why the new 2025-2027 immigration plan reduced the population inflow by more than 20%. But this does not mean our population will shrink! Any nation in the world requires its population to grow by at least 1% each year in order to maintain its GDP growth. Therefore, Canada plans to welcome just under 1% of its population as permanent residents and around 5% as temporary residents for the next three years, instead of the previous immigration rate of 1.25% permanent residents and 7.5% temporary residents. The country will adjust its immigration targets regularly, which is why Canada’s birth and death rates are not significant factors for the housing market. Population and Immigration Projections According to Statistics Canada Total Population in 2025 41.5 million Total Population in 2027 42.26 million Permanent Resident Admissions Target (1% of population) ~422,600 Temporary Resident Admissions Target (5% of population) ~2,100,000 As we can see, constant and necessary immigration is why housing will remain valuable and demand will continue to outpace supply in the long term, even as we currently see sliding housing prices and ballooning inventory in the short term. Where the Market is Heading? With today’s situation, we can foresee that 2025’s lack of housing presales will mean virtually zero construction will occur in 2026 and 2027, meaning no new inventory will be added in 2028. This is poised to spark a new cycle in the market, as low supply and high demand will drive prices back up again. In addition, the overall future of housing in Canada is deliberately heading towards rentals rather than ownership. Both the government and developers are focusing their efforts toward building purpose-built rental housing, which means condo development is expected to fall by the wayside. This means future homeowners will have fewer options when looking for starter homes as they compete for a smaller selection of resale homes or more expensive low-rise pre-construction homes. Therefore, first-time home buyers have a small window of opportunity to break into the housing market while conditions are currently favourable. In a few short years, there will be fewer housing options and higher prices, making it harder for Canadians to switch from renting to buying. Seize your opportunity now with the expert guidance of GTA-Homes! Our agents are ready to walk you through the homebuying process and help you realize your dreams of homeownership. The post Does Canada’s Declining Birth Rate Mean More Housing Availability? appeared first on Realinsights.

refinancing-versus-selling-your-investment-property
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Refinancing Versus Selling Your Investment Property

ByRose Ho

In today’s news, it’s common to hear stories about Canadian real estate investors who bought at the market peak a few years ago and now feel buyer’s remorse as property values are sinking in 2025. Even investors who entered the market earlier than 2022 are struggling to shoulder higher carrying costs against a less-active rental market. Mortgage, credit card, and automobile delinquencies are also up, especially in Ontario. On top of this, the average non-mortgage debt for Canadian consumers climbed up 2.74% in the first quarter of the year to reach $21,859. With many homeowners under financial stress, investors may be considering their options, namely to hold, to refinance, and (as a last option) to sell. Costs of Refinancing vs. Selling To help illustrate the costs of refinancing versus selling, let’s take one example of an investor who currently owns a two-bedroom condo in Downtown Toronto, which he is renting out. This property is currently worth $800,000, which is a bit devalued from the market peak 3 years ago. He has owned it for a while, so his mortgage loan is only about $400,000. His carrying costs are high because he renewed his mortgage term when interest rates were around 5%, but he is nearing the end of his term and interest rates are much lower. His daughter is about to go to college, so he wants to help her cover her tuition and living expenses. Therefore, he is considering refinancing or selling his condo investment property to reduce his monthly financial burden and have extra funds to help his daughter. Let’s look at the cost breakdown of both options. Refinancing Selling Appraised Home Value $800,000 Current Mortgage Loan $400,000 Cost to Refinance or Sell (agent/broker fees, mortgage penalty, legal costs) $2,000 $50,000 Capital Gains Tax N/A $92,000 New Mortgage Loan $600,000 N/A Money Extracted Minus Costs $198,000 $257,000 In the short term, selling can provide more value for this investor, as the difference between refinancing and selling is an estimated $59,000 in cash. However, this is just a quick estimate and a shallow glance at the immediate effects of selecting either option. What happens when we look deeper and project into the future? Why Selling Could Cost You More Than You Think Once you sell, you give up the three pillars of real estate wealth: leverage, capital appreciation, and cash flow. The moment you sell, it all stops—no more equity growth, no more rental income, no more long-term gain. It ends right then and there. But when you refinance instead, you get the best of both worlds: ✅ Immediate access to cash to help you now ✅ Continued growth on your $100,000 investment Over the last 25 years, home prices have appreciated at an average rate of 7.5%. Even at a conservative 4% annual growth, if your property is worth $800,000, that’s $32,000 a year in equity gain—without lifting a finger. And that’s on top of your tenant paying down your mortgage and generating monthly cash flow. If you keep that property for another 15 to 25 years, the wealth potential multiplies. We’re not talking about a one-time gain of $257K. We’re talking about 10x that amount — while still holding the asset, benefiting from appreciation, and using someone else’s money (your tenant’s) to build your net worth. Refinancing keeps your wealth working. Selling shuts it down. What Are Your Long-Term Goals? Both refinancing and selling can help this investor achieve his immediate objectives: reducing his carrying costs and sending his daughter to college. However, in the long run, they will deliver different results. Therefore, it is crucial for any investor to keep their long-term goals in mind. Short-Term: Reduce Current Debt and Financial Strain If you are currently under the weight of heavy debts (including multiple mortgages, credit card debt, or other loans) and your carrying costs are growing out of hand, you may consider selling your property to tackle both of these problems at once. The net proceeds of selling your real estate investment can help you pay off other debts while immediately removing that property’s carrying costs from your monthly ledger. However, if your situation only needs a slight adjustment to be sustainable again and borrowing rates have dropped, refinancing your high-interest fixed-rate mortgage may be just what you need to carry on. By refinancing and getting a lower interest rate while extracting some optional extra cash, you may be able to lower your monthly costs and improve your cash flow to cover other expenses. You should still weigh the refinancing option against the qualifications you may need to apply for a new mortgage and the penalty of breaking your current mortgage agreement. Not everyone’s situation may allow them to refinance, as lenders will look at your debt ratios, which may have worsened since you last applied for a mortgage. Additionally, if you are near the beginning of your mortgage term or have a closed agreement, breaking your current mortgage may be extremely costly. Long-Term: Use The Equity to Spend or Invest More Refinancing offers an attractive avenue for you to extract cash equity without incurring the many expenses of selling your property. The cost to refinance for some can be quite minimal, as some mortgage brokers offer cashback incentives to cover legal fees. The equity you withdraw is not subject to capital gains tax either, which would otherwise take a huge bite out of your

High Ratio Mortgage
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What Is a High Ratio Mortgage?

ByStan S.

What Is a Ratio Mortgage? In the context of conventional and high ratio mortgages, the ratio mortgage refers to the relationship between the size of the mortgage loan and the amount of the down payment the investor is willing to place when purchasing a property. It is also known as the loan-to-value ratio. The down payment is…