Spurred by a housing boom and a wealth effect which has enriched consumer spending, Canadian households have become the backbone of economic growth for over a decade. Total household debt has climbed to $1.8 trillion. According to the Bank of International Settlements, private sector debt-to GDP has grown nearly 20% over the past five years, the most of any other advanced economy.

Government officials and financial regulators have decided it’s time to shift course. Following a plethora of new policies aimed at curbing runaway house prices and overextended households, it appears detached BC house prices have started a downward trend in some areas.

Despite this, if you’re a BC homeowner, it is likely that your home has increased tremendously in value over the past couple of years. Now is a great time to take advantage of the current inflated housing market to tap into your home equity to buy investment properties which are likely decreasing in value.

It’s important at this stage to disclose that if you wish to access equity in your home to refinance; this includes my clients who want to keep their property, refinance, and/or buy another property, the new mortgage rules  which came into effect earlier this year, will affect how much equity you can access.

Under the old loan-to-value (LTV) ratio rule, prior to January 1, 2018, if you were refinancing, the maximum amount of equity you could tap into was 80% and you did not have to pass a stress test.

Under the new guidelines, if you’re looking to refinance a mortgage, the new mortgage lending rules mean it will be that bit more difficult to qualify for your refinance. Fortunately, we can help get you the mortgage or other financial product you deserve.

Through a non-federally regulated private lender, we can shop the private mortgage market for you so you can access your home equity without even re-negotiating your first mortgage.

Click here to see how much equity you can access today or apply online. We’d be more than happy to help!