A re-finance is like a low interest loan that liberates up to 85% of the net value of your property, minus the balance of your existing mortgage.
It can be advantageous to re-finance before the term if the interest savings are greater than the penalty.
If you want to invest in real estate, why wait until your mortgage expires? For a condo, duplex, or triplex you can borrow up to 80% of the net value; for a multi-plex (5 units or more) you can borrow up to 85% of the value. The value of a property generally increases over time and follows the overall trends in the real estate market. Take advantage of this increase to re-finance your mortgage and acquire a rental property.
Planiprêt, Mortgage Planners recommends that you consult a member of the Autorité des Marchés Financiers (AMF) who will take the time to discuss an investment strategy with you. They will consult you regarding your knowledge of the markets; your tolerance for risk, and your investment goals. Borrowing to invest can be a very effective strategy but it is not suited for everyone. Before committing yourself to this strategy be sure that the investment you are considering corresponds to both your goals and your risk tolerance.
Take the time to meet one of our consultants at Planiprêt. They will evaluate your risk tolerance and will help you accomplish your investment goals. Our knowledge of the mortgage market is second to none therefore we are a valuable ally in the creation of your investment portfolio. And our services are free!