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Today's Rates
MAR
112010
| Term | Posted rates |  |
| Variable | 2.25 %* | 1.85 % |
| 1 year | 4.35 % | 2.33 % |
| 3 years | 4.35 % | 3.25 % |
| 5 years | 5.50 % | 3.79 % |
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Huge advantages in investing? Mortgage refinancing is a profitable option
As a home owner, you will be happy to know that your house has most probably increased in value since you purchased it. This gain in value can help you grow your investment portfolio or you could let you invest it in a multi-unit property. Refinancing allows you to use your home equity to secure a loan at a lower interest rate by borrowing up to 95% of the net value of your property, minus your mortgage balance.
Did you know that
- It is usually preferable to refinance closer to the end of your term to avoid penalties.
- It could be beneficial, however, to refinance before the end of your term if your expected savings exceed the penalties.
- You can borrow up to 90% of the net value for a three or four unit property and 85% for multi-unit buildings of 5 units or more.
Borrow on your home equity for investment purposes
Multi-Prêts suggests that you contact an accredited professional from the Autorité des marchés financiers (AMF) who will take the time with you to develop an investment strategy based on your particular needs and knowledge of the financial market while taking into consideration your risk tolerance, the amount you wish to invest and what you wish to gain from your investments. Borrowing to purchase a diversity of financial products could turn out to be a winning formula.
Increase your RRSP contributions
You could use the refinancing strategy to increase your RRSP contributions.
AMF professionals will gladly advise you on how you can grow your portfolio.
Invest in a rental property
If you wish to invest in real estate, why wait for your mortgage to arrive to term? As the years go by, the net value of your property tends to increase and follow the trend of the real estate market. Take advantage of this growth to refinance you property and buy a rental building.
Do not hesitate to contact your accountant to find out about operating costs deductions, including the mortgage interests. Ask your mortgage consultant to share with you the benefits of the specific products adapted to your investment projects.
Is refinancing for you?
Borrowing to invest could be a great strategy, but it is not suitable for everyone. Before committing yourself to this venue, you should make sure that what you are investing in coincides with your personal values on investment goals and your risk tolerance.
Let us explain you the advantages of mortgage refinancing by contacting one of our agents. With their precious advice, you will be better equipped to choose the right investment for you.