Welcome to the latest episode of Make Money Count! In this episode we dive into the latest developments in the Canadian mortgage market and how they can impact homeowners and investors like you. From new refinancing options to strategic insights on maximizing your home’s value, we have plenty to share. Let’s explore these game-changing updates and see how they could benefit you.
New Refinancing Option: Unlock Up to 90% Loan-to-Value
The Canadian federal government has introduced a new refinancing opportunity that allows homeowners to refinance up to 90% of their property’s value. This initiative is aimed at helping you unlock your home’s equity to build additional rental units, such as garden suites or basement apartments. Whether you’re looking to supplement your income or invest in a rental property, this program provides unprecedented access to funds that could significantly boost your financial strategy. Find out if you qualify and how to take advantage of this opportunity.
Understanding Recent CMHC Policy Changes
On June 15th, CMHC tightened their underwriting guidelines for purpose-built rentals, making it more challenging for builders to develop new rental properties in major urban centers like Toronto and Vancouver. This policy shift aims to ensure affordability and energy efficiency but may limit the supply of new rentals. Learn how these changes affect your refinancing options and what it means for the broader housing market.
Economic Factors Influencing Your Mortgage
Bond yields have recently spiked due to stronger-than-expected US employment numbers and rising oil prices amid Middle Eastern tensions. These factors are driving up mortgage rates, impacting both new borrowers and those looking to switch from fixed to variable rates. Understanding these economic indicators can help you make informed decisions about your mortgage strategy.
Is It Time to Switch Your Mortgage Rate?
With bond yields rising, the penalties for breaking fixed-rate mortgages may decrease. This could be an opportune moment to consider switching to a variable-rate mortgage. However, it’s essential to evaluate the costs and benefits carefully. Our experts at Cannect can help you analyze whether breaking your current mortgage and transitioning to a variable rate aligns with your financial goals.
Rental Income Opportunities: Maximize Your Investment
Building additional rental units on your property can be a smart way to generate long-term income and increase your home’s overall value. However, you need to consider the implications, such as ensuring that these units are legal and properly managed. Rental demand in cities like Toronto is high, and with the right planning, you can turn this refinancing option into a steady source of passive income. We’ll help you evaluate your options and create a plan that works for your financial goals.
Are You Ready to Take the Next Step?
At Cannect, we’re committed to helping homeowners and investors make informed decisions. If you’re interested in learning more about how these new mortgage programs can benefit you or need assistance with refinancing, contact us today. Our team of non-commissioned experts is here to offer unbiased advice and tailor solutions to meet your needs.
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