Should You Refinance to Buy Another Property in Ontario? (2025 Investor Guide)

By Sol Yasin | Mortgage Agent Level 1
Kingsdale Mortgage Centre Inc. | FSRA License #13585
Call or Text: 647-207-0470

🎯 Thinking About Buying Another Property?

Strapped for cash but sitting on equity? Refinancing an existing property could unlock the capital you need — but in 2025’s market, it’s not always the right move.

In this guide, we’ll explore when it makes sense to refinance to buy another property in Ontario, and when it might backfire. I’ll also share real investor case studies to help you decide.

🧠 Why Investors Refinance to Buy Another Property

Refinancing allows you to:

• Unlock equity based on a new appraisal

• Leverage gains instead of letting equity sit idle

• Scale your portfolio faster than saving a new down payment

📌 Example: A client bought a townhouse in Kitchener for $520K in 2020. It’s now worth $700K. We refinanced to $560K, paid off the $390K balance, and used the extra $170K as a down payment on a triplex in Welland.

✅ Pros and ⚠️ Cons of This Strategy

✔️ Pros:

• Tax-free access to equity

• Accelerated portfolio growth

• Potential to improve cash flow with better terms

⚠️ Cons:

• Higher debt load

• Possible increase in monthly payments

• You’ll need to pass the current stress test

• Risk of low appraisal value

Always run a full mortgage analysis to ensure the numbers work before you proceed.

📈 Is This Strategy Viable in 2025?

Yes — but only for those who are prepared.

You’ll need to:

• Pass the stress test (2% above contract rate)

• Have strong credit and provable income

• Ensure the new property’s rental income supports itself

📌 Real Example: A couple in Mississauga refinanced their detached home, pulled $200K, and aimed to buy a $900K duplex in Barrie. They passed the stress test but fell short on income. We pivoted to a joint venture with a capital partner who co-qualified — and closed the deal.

🛠️ Smart Ways to Refinance for a New Purchase

Here are investor-tested strategies:

• HELOCs: Access capital without resetting your full mortgage

• Blended Mortgages: Add funds without breaking your current rate

• Equity Take-Out + B Lender: Refi with an A lender, buy with a B lender

• Refi + JV Strategy: Combine equity with a partner who can qualify

Each method has trade-offs — structure depends on your goals, credit, and income.

📞 Ready to Build a Refinance Strategy?

Thinking about refinancing to buy another investment property in Ontario? Let’s run the numbers together.

🔗 Book a free strategy call
🌐 Apply online
📞 Call or text: 647-207-0470

📍 Based in Ontario — helping investors across the province

Fixed vs Variable Rates for Investors in Ontario – What’s Smarter in 2025?

Published by: Sol Yasin | Mortgage Agent Level 1

Brokerage: Kingsdale Mortgage Centre Inc. | FSRA License #13585

Location: Ontario, Canada

🎯 Why This Decision Matters More Than Ever

Rates are high. Real estate activity is slow. And headlines are louder than ever.

But for serious real estate investors in Ontario, this environment is exactly when smart mortgage strategy matters most.

The choice between fixed and variable rates in 2025 isn’t just about getting the lowest number — it’s about protecting your cash flow, planning for future deals, and structuring your debt for growth.

Let’s break it down.

🔍 Who Am I to Give You This Advice?

I’m Sol Yasin, licensed mortgage agent in Ontario and active investor for over 15 years.

I’ve worked with hundreds of investors buying, refinancing, BRRRRing, and scaling portfolios across Ontario — and what separates those who grow from those who stall is almost always financing strategy.

That’s what this blog (and my YouTube channel Mortgages by Sol) is all about.

💼 Fixed vs Variable Rates for Investors

Let’s define the basics — with an investor lens:

✅ Fixed-Rate Mortgages

• Locked-in rate for 1–5 years

• Predictable payments

• Best for long-term holds or tight cash flow

✅ Variable-Rate Mortgages

• Fluctuates with the Bank of Canada’s prime rate

• Often lower to start — but higher risk

• Ideal for short-term plays, renos, or refinance strategies

Key Investor Considerations:

• Prepayment penalties: Fixed rates often carry IRD penalties, which can cost thousands if broken early. Variable usually has just a 3-month interest penalty — better for BRRRRs, flips, or early exits.

• Refinance timing: If you plan to pull equity within 1–2 years, variable or short-term fixed (1–2 year) can give you flexibility without harsh penalties.

• Alignment with your plan: Your mortgage term should support your exit plan, cash flow model, and portfolio growth — not just headline rates.

📊 What’s Actually Happening in 2025?

As of mid-2025, we’re entering a rate-cutting cycle in Canada. Inflation has cooled, and the Bank of Canada is beginning to ease up.

Here’s what that means:

• Fixed rates have already started to fall, as bond yields price in anticipated cuts.

• Variable rates remain high (for now), since lenders are cautious and prime hasn’t moved much yet.

• Some fixed-rate mortgages are now cheaper than variable — which flips the usual script.

👉 So don’t assume variable is always cheaper. In today’s market, you need to choose based on structure, penalties, and flexibility — not just rate.

🧠 What Investors Should Consider Before Choosing

Before picking a rate type, I walk every client through these four questions:

1. Cash Flow Tolerance

Can your property absorb fluctuations? Fixed offers predictability. Variable gives flexibility — with more risk.

2. Refi or Exit Timeline

Planning a BRRRR or value-add play in the next 12–24 months? Avoid fixed IRD penalties. Consider variable or a short-term fixed.

3. Lender Policy Differences

Trigger rates, blending rules, and prepayment privileges vary. The fine print matters.

4. Portfolio Growth Strategy

Want to buy again soon? You may want to prioritize flexibility and qualification power over rate.

🧱 What Most Investors Are Doing Right Now

Here’s what I’m seeing across my investor clients in Ontario:

• 🔒 1 to 3-Year Fixed Rates: For stability without a long-term commitment.

• 🔄 Variable Rates for BRRRRs & Flips: Lower penalty exposure and easier exits.

• 🧩 Mixing Strategies: Fixed for long holds, variable for short terms, and HELOCs for renos.

There is no one-size-fits-all answer — only smart structure based on your unique plan.

💬 Final Thoughts: Make the Move Before the Market Does

Uncertainty creates hesitation — but also opportunity.

The smartest investors in Ontario are positioning now, before the market heats up again. That means getting pre-approved, setting up your HELOC, and locking in flexible terms while others wait.

Need help reviewing your current mortgage, equity, or purchase plans?

📞 Book a Free Strategy Call

Let’s build your mortgage roadmap.

🔗 Book a free strategy call

🌐 Get pre-approved

📍 Based in Ontario — helping investors across the province

📋 Sol Yasin, Mortgage Agent Level 1

🏢 Kingsdale Mortgage Centre Inc. | FSRA License #13585

⚠️ Disclaimer

This blog is for informational and educational purposes only and does not constitute financial, legal, or mortgage advice.

Always consult a licensed mortgage professional before making any financing decisions.

Sol Yasin is a licensed mortgage agent in Ontario, FSRA License #13585, operating under Kingsdale Mortgage Centre Inc.

The Greater Toronto Area (GTA) housing market is slowly showing signs of recovery, according to the latest update from the Toronto Regional Real Estate Board (TRREB). Although June 2025 sales were slightly below last year’s numbers, improved affordability and rising inventory are encouraging more buyers to re-enter the market.

📉 More Affordable Than Last Year

Thanks to declining interest rates and slightly lower home prices, affordability is improving. The average selling price in June was $1,101,691, down 5.4% compared to June 2024. Mortgage rates are also lower than they were a year ago, giving buyers more breathing room when it comes to monthly payments.

TRREB President Elechia Barry-Sproule notes that “with more listings available, buyers are taking advantage of increased choice and negotiating discounts off asking prices.” For those waiting on the sidelines, this could be the window of opportunity.

✅ Tip: Lock in today’s lower rates before the next wave of buyers enters the market. Apply Now

📊 Market Snapshot – June 2025

• Home Sales: 6,243 (↓ 2.4% year-over-year)

• New Listings: 19,839 (↑ 7.7% year-over-year)

• MLS® HPI Benchmark: ↓ 5.5% year-over-year

• Average Price: $1,101,691 (↓ 5.4% year-over-year)

On a seasonally adjusted basis, sales in June rose compared to May, while new listings declined, continuing a tightening trend that began in the spring.

🏛️ What Could Push Sales Even Higher?

TRREB’s Chief Information Officer, Jason Mercer, highlighted two key factors that could further support the housing market:

1. A strong trade deal with the U.S. – More economic stability would boost consumer confidence.

2. Two more rate cuts – Lower mortgage payments could make homeownership achievable for more households.

🛡️ Safety Concerns & Government Response

Beyond economics, safety is becoming a concern for many GTA residents. TRREB CEO John DiMichele addressed growing fears about home invasions and carjackings, and voiced support for a new federal crime bill aimed at stricter bail conditions and sentencing.

🏠 What Does This Mean for You?

If you’re considering buying, selling, or refinancing in the GTA, now may be the right time. With interest rates lower and more homes on the market, savvy buyers are negotiating better deals.

📌 Ready to explore your options?

Start your application online — it’s quick, secure, and free:

👉 Get Mortgage Pre-Approved Here

🏙️ Toronto Real Estate Market Update – March 2025

More Affordable, More Choice — But Buyers Are Holding Back

TORONTO, ON – April 3, 2025 — The GTA real estate market in March delivered a rare mix: greater affordability 📉 and more inventory 🏠 — a scenario many homebuyers dream of. But despite the buyer-friendly landscape, many are holding off, watching how the economy and upcoming federal election unfold.

📉 Sales Drop, but Buyer Opportunity Rises

GTA REALTORS® reported 5,011 home sales through TRREB’s MLS® System in March 2025 — a 23.1% decrease compared to March 2024. On a seasonally adjusted basis, sales also dipped compared to February 2025.

At the same time, new listings surged to 17,263, up 28.6% year-over-year, giving buyers more options than they’ve seen in quite some time. 🏘️

🗣️ “Homeownership has become more affordable over the past 12 months, and we expect further rate cuts this spring,” said TRREB President Elechia Barry-Sproule. “Buyers will also benefit from increased choice, giving them greater negotiating power.”

💰 Prices Reflect the Shift

• MLS® Home Price Index Composite Benchmark:

📉 Down 3.8% YoY

📉 Down MoM (seasonally adjusted)

• Average Selling Price:

💲$1,093,254

🔻 Down 2.5% YoY

➖ Flat MoM (seasonally adjusted)

This drop in pricing, along with declining borrowing costs, has improved affordability across the board — making this spring a potentially strategic entry point for savvy buyers.

🤔 Why Are Buyers Waiting?

According to TRREB’s Chief Information Officer Jason Mercer:

“Given the current trade uncertainty 🌐 and the upcoming federal election 🇨🇦, many households are likely taking a wait-and-see approach. If trade issues are solved or public policies ease the impact of tariffs, we’ll likely see an uptick in sales.”

⚠️ Confidence Is Key

It’s not just about rates and prices — job security and economic outlook are front-of-mind for buyers committing to long-term mortgage payments.

“Home buyers need to feel their employment situation is solid before committing,” Mercer added.

🧱 Housing Supply: A Political Priority

TRREB CEO John DiMichele emphasized that housing remains a top priority across federal party platforms:

“Access to affordable housing remains top-of-mind for Canadians. Building that housing will be a key economic driver moving forward.”

🔍 Final Thoughts

✔️ More listings

✔️ Lower prices

✔️ Rate cuts expected

❌ But buyers remain hesitant

If you’re a buyer, the math is starting to make sense. If you’re a seller, positioning and strategy are more important than ever.

Thinking of making a move in the GTA? Let’s talk about how to make today’s market work for you. 📲🏡

📈 GTA Home Sales Surge in November 2024! 🏠

TORONTO, ONTARIO – December 4, 2024
The Greater Toronto Area (GTA) housing market is heating up! 🔥 Home sales in November 2024 rose significantly compared to the same time last year. Buyers are reaping the benefits of lower borrowing costs and more affordable conditions. While new listings also increased, they didn't keep up with the demand, tightening the market and nudging prices upward. 💹

Key Highlights: ✨

• Home Sales: 🏘️ A whopping 5,875 sales were recorded in November 2024—a 40.1% increase compared to November 2023!
• New Listings: 📋 11,592 properties hit the market, up 6.6% year-over-year.
• Average Price: 💵 The average selling price climbed 2.6% year-over-year to $1,106,050.

A Word from TRREB 🗣️

Jennifer Pearce, TRREB President, shared her optimism:
"With inflation easing and borrowing costs trending lower, many buyers are re-entering the market. Selling prices remain well below their historic peaks, setting the stage for a stronger recovery in 2025."

Market Trends 🔍

• Detached Homes: 🏡 Tight conditions in this segment led to price growth outpacing inflation, especially in the City of Toronto.
• Condos: 🏢 Prices remained lower than last year, offering buyers great choice and negotiation power.

According to Jason Mercer, TRREB’s Chief Market Analyst:
"Condo affordability will attract renters into homeownership as borrowing costs continue to decline."

Rental Market Outlook 🏘️

With high population growth, rental demand is expected to strengthen. However, resolving the backlog of 53,000 Landlord and Tenant Board (LTB) cases could bring significant improvements for tenants and landlords alike.

John DiMichele, TRREB CEO, emphasized:
"Reforming the LTB to make it faster and fairer will help more families find affordable housing."

GTA Residents Speak Up 📊

A recent Ipsos poll revealed:

• 93% of respondents support immediate action to reduce the LTB backlog.
• 94% believe an efficient LTB is critical to Ontario’s housing market.
• 89% endorse investments in staffing, tech, and streamlined processes.

The numbers tell a clear story: the GTA real estate market is poised for a strong recovery as we head into 2025. 📅 Whether you're buying, selling, or renting, it’s a market to watch! 👀

Stay tuned for more updates, and let us know your thoughts in the comments below!

Greater Toronto Area (GTA) home sales surged in October 2024, with a notable 44.4% increase year-over-year. The Toronto Regional Real Estate Board (TRREB) reported 6,658 home sales through the MLS® system, compared to 4,611 in October 2023. The average selling price rose 1.1% to $1,135,215, reflecting a shift in market dynamics as new listings also increased, albeit at a slower rate than sales.

Key Market Highlights for October 2024

• Home Sales: GTA home sales reached 6,658 in October, up by 44.4% compared to the previous year.
• New Listings: 15,328 new listings were added to the MLS® system, marking a 4.3% year-over-year increase.
• Average Selling Price: Slightly increased by 1.1% from October 2023, reaching $1,135,215.
• MLS® Home Price Index: The composite benchmark dropped by 3.3% year-over-year, while the average price edged up month-over-month from September.

TRREB President Jennifer Pearce noted that reduced borrowing costs are helping buyers re-enter the market, spurred by the Bank of Canada’s recent rate cuts. "The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity,” Pearce remarked.

Buyer Demand and Inventory Outlook

Despite a slight price increase, there remains ample inventory for buyers, which is expected to moderate price growth in the coming months. However, TRREB Chief Market Analyst Jason Mercer cautioned that as inventory decreases and home construction lags behind population growth, prices could rise more substantially by spring 2025.

Policy Impact on Affordability

TRREB CEO John DiMichele highlighted the importance of policies to support affordability. He endorsed the Conservative Party of Canada’s pledge to remove the GST on new homes under $1 million, advocating for a phased rebate that could better accommodate higher-priced markets like the GTA and Vancouver.

This October update signals an evolving market as buyers capitalize on improved affordability and stable price conditions.