We all have different reasons for purchasing a home. Some see it the place they’ll grow old in, where as others see it as an investment, and a tool to withdraw cash from to use to generate a secondary flow of income. Either or, and especially in today’s economy (Vancouver specific) home ownership is a stable investment, and if picked wisely, one that will appreciate over time. That being said, this article is intended to spark your interest, and see if refinancing your appreciated property is right for you.

Banks and lenders are currently offering low interest rates that are enticing many homeowners to refinance their property to pull equity out of their home, and use it for other investments. For example, consider borrowing money from your home at a today’s low interest rate, and reinvesting it into something that generates a higher return.

Here is a list of examples of reasons people refinanced their property:

• Consolidate high interest debt
• Pay for son or daughters education
• Home renovations
• Boost RRSP contributions
• Pay for a holiday
• Invest in stocks paying a higher dividend than money borrowed

Your home is now more than a roof over your head, it is an investment that allows you to take advantage of low interest rates, and reinvest into other options that will make you more money.

As everything above is true, it may not be the right time for you to refinance. I highly suggest consulting with a licensed Mortgage and Financial Planner, and seeing if the numbers work for your lifestyle. Remember, we want to be House rich, not Mortgage poor.

All the best,

D