Although many home owners hesitate when considering the possibility of taking on more debt against their home in the form of a mortgage, ultimately it may make sense for them to do so for several different reasons. With the high rate of unsecured debt growing at approximately 30% per annum in Canada, and disposable income growing at approximately 3% per annum, consumers on average are spending money much faster than they are making it. For this reason, many look to the increased equity in their homes in order to increase their cash flow by consolidating their outstanding debt load. Thisdebt consolidation approach actually saves the consumer money, especially with the mortgage rates being at an all time low. The consumer also saves money by consolidating, simply because there is a difference between the mortgage rates and the unsecured rates, by a significant margin.

Other reasons that home owners may re-finance their homes are,home improvements or renovations. With the high cost of homes these days, many are choosing to make changes to their existing homes by renovating their basement, improving and updating their kitchen space, and their bathrooms. There are those who do an equity take-out for investment purposes, or to purchase another home or recreational property. With the higher cost of second mortgages, consumers with equity for the most part will choose to combine their existing first and second mortgages to improve their cash flow situation.


The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $25,000 (after January 27, 2009), from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability .

IMPORTANT NOTE: Don’t forget to ask us about how you may qualify for FREE land transfer tax as a First-Time Home Buyer.