The Real Estate Intelligent interview series features BC’s most prolific professionals shaping the local real estate industry.
AN INTERVIEW WITH SCOTT GINGLES, FOUNDER & MANAGING DIRECTOR, NEST MORTGAGE
Part 4 of 5: Refinancing
We have witnessed a lot of compression in mortgage rates over the past 24 months, alongside incredible growth in home values throughout the last 12 months. Ryan Lalonde, President at MLA Canada, asks Gingles for his insight on what is driving current refinancing activities that are occurring in today's Lower Mainland's real estate markets.
RYAN LALONDE: How much of the conversation that you're feeling right now in your boardroom is centering around the ability to refinance and access funds that are currently within other properties in order to drive another transaction?
SCOTT GINGLES: There's obviously a lot of equity built up, and people are trying to tap into that, for one of two reasons.
The first reason is to access a better rate and higher savings. At Nest Mortgage, we focus on simple, competitive, and customized mortgages. It has never been easier to complete a quick application, have us review your numbers, and see if it makes sense. If the savings outweigh any potential breakage, like completing a refinance, which is the main driver for why household mortgage debt has increased in the last 12 months. People are looking to access better rates and higher savings.
Another reason to refinance is for investment, renovation, or debt consolidation. There has never been a better time to access a low rate and low payment to expand your real estate portfolio, and potentially purchase a pre-sale or resale home.
The biggest driver is rates, of which some of the momenta is starting to taper. It will be interesting to see what happens over the next 12 to 18 months if borders open. Canada has been a global leader and immigration, with 400,000 immigrants annually. This will have a big impact on demand and financing as well.