Posted by: MonsterMortgage.ca
Let’s face it, in today’s market, it has become more costly to move, both selling and buying, once you consider the real estate and legal fees, the provincial tax and the addition of the Toronto Land Transfer Tax. It is no surprise to me that many individuals, especially in the GTA, have turned to reinvesting that money back into their own property.
It makes perfect sense if you are happy with your home’s size and location to simply renovate and make the necessary upgrades that will improve your home to your desire and simultaneously increasing your home’s value. Refinancing your mortgage is a good mortgage strategy especially if you do not have the readily accessible funds to buy and sell, as you are able to increase your mortgage up to 90% of its current value.
It is always a great option of reinvesting in your home, however, it is also important to note and understand what will get you the most “bang for your buck”. Essentially not all improvements, repairs or enhancements will get you full return on your money spent in value.
As long as you have established enough equity in your property, then the refinance route is possible. It is also an easier process than going through the sale and new purchase of a home. Even though repairs and improvements to the home’s cosmetic and functionality may be your goal, the important factor in the minds of individuals is increasing the value of your home.