Thiru Nirahulan's blog

A second mortgage is a financial tool that is seeing a resurgence among Canadian homeowners. With property values soaring, homeowners are sitting on significant untapped equity in their residences. Property owners are realizing the possibility of consolidating high-interest debts, financing home improvements, or even funding an investment property with a second mortgage.

How Does a Second Mortgage Work?

A second mortgage is a secured loan taken out against the equity that has been built up in a home. The amount you can borrow through a second mortgage is usually based on the...

The big question on everyone’s lips seems to be, will the Bank of Canada cut interest rates this year? The Bank has raised the benchmark interest rate by nearly 500 basis points since early 2022 in its quest to vanquish inflation in the Canadian economy.

In July, the central bank pulled the trigger on a quarter-point rate hike following a temporary pause this past spring. There had been some optimism that the institution would be pausing its tightening cycle and perhaps even planning to slash interest rates as inflation metrics continue to slow. However, the Governing Council noted...

Zoning regulations are local laws that control how property can be used in a certain area. These regulations can significantly impact your commercial space, influencing what type of business you can operate, the size and design of your building, parking availability, and more. Here's how zoning issues can affect your commercial property:

1. Permitted Uses:

   • Zoning regulations dictate the types of activities that are allowed in specific zones. For example, a residential zone may not permit commercial activities, and vice versa. Ensure that your business activities comply...

Home equity is the difference between the current market value of your home and the outstanding balance on your mortgage. Making the most of your home equity can be a smart financial move. Here are several ways to leverage your home equity:

1. Home Equity Loan or Line of Credit:

   • Home Equity Loan: This is a lump-sum loan with a fixed interest rate. It's suitable for one-time expenses, such as a home renovation.
   • Home Equity Line of Credit (HELOC): It's a revolving line of credit similar to a credit card. You can draw on it as needed. This is more flexible and often used...

Refinancing your mortgage in Canada involves replacing your current mortgage with a new one. This is often done to secure a better interest rate, adjust the term of the loan, or access equity for other financial needs. Here's a step-by-step guide:

1. Evaluate Your Current Situation:

• Interest Rate: Check your existing mortgage interest rate and compare it to the current market rates.
• Credit Score: A higher credit score typically allows you to qualify for better interest rates.
• Home Equity: Understand how much equity you have in your home.

2. Determine Your Refinancing...

If you need a shed in your backyard, there are only two options. You can either buy the materials and build a shed on your own, or you can buy a premade shed from a store or a shed-building company.

Each one of these options checks a few boxes that the other doesn’t, mainly regarding the price, the quality of the shed, and the effort put into getting the job done. Depending on what you need, you can either buy a shed or build a shed – here’s how to decide which one’s the right choice for you.

The Pros and Cons of Buying a Backyard Shed

Some backyard sheds are so...

How a Bidding War Works

In a seller’s market, there are more buyers than homes available for sale. The combination of limited inventory and high demand often puts upward pressure on prices, creating the ideal conditions for a bidding war. Homes typically sell quickly in a seller’s market, and multiple offers on a listing are more likely, giving the seller the upper hand.

When market conditions favour sellers, demand is usually up, and inventory is down, which has been the case throughout the pandemic. With few listings on the market, the seller and listing agent may choose to set...

Is Toronto real estate cheaper than Vancouver? This is the million-dollar question.

As conditions shift in the current housing landscape, this has become a common question in today’s Canadian real estate market. While some places shift into a buyer’s market and others maintain their seller’s market status, prospective homeowners, investors, and analysts are attempting to determine what trajectory these major urban centres are heading as the country continues to move on from the pandemic and contend with higher interest rates.

The most effective tactic is to look at benchmark or...

Vacant home taxes were being implemented in various cities across Canada, primarily in response to housing affordability concerns and the need to address housing shortages. However, the specific details and regulations of vacant home taxes can vary from one city or province to another. Here's what you need to know about vacant home taxes in Canada, with a focus on the general principles and trends:

1. Purpose:

• The primary purpose of vacant home taxes is to encourage property owners to put their properties to productive use by renting or selling them, rather than leaving them...

If you are interested in purchasing a residential property in 2023, the competition will be fierce as housing supply remains tight and demand begins to be renewed. Mortgage rates have likely peaked, the consumer remains in decent shape, the Canadian government’s immigration program anticipates seeing hundreds of thousands of newcomers in the next couple of years, and the national economy is holding steady.

While housing affordability is not at the forefront of the federal government as it was in the last election campaign, many local governments are taking action to ensure that more...