What are you going to do with all that equity?

Joel Olson • January 20, 2022

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Valuations are in for 2022, but what can you do with it?

What are you gonna do with all that Equity from your recent home assessment? 


There is no question that more and more people have been asking us about the surprise on a huge gains on their personal assessment. 


First off, a lot of people misunderstand how these assessors are covered in the first place. 


That assessment is based on the “sight unseen” value of your home from July of the previous year. 


That means a system takes comparable sales in the area and determines the value based on July of last year in your marketplace. 


It doesn't take into consideration any recent repairs you may have done, or any updates you've done to the property since its last sold.


The most recent data normally an assessment has on hand is the MLS data from the last time the house sold, so for instance, if your house has had major upgrades since you've last sold it or you've owned it for quite a long time, it is assuming that it's in original condition and that depreciation has been taken into consideration on your Property Assessment. 


This makes the vast increase on your property assessments even more surprising, knowing that logically it means that assessments are much lower than what true values are. 


Nobody will question the fact that between July and December of last year, values went up in nearly every market across Canada. 


Now it, by no means, means that it is accurate… the system may have made errors. 


The system may have used data that was incorrect. 


It doesn't mean that your house is worth what is on the assessed value. 


In fact, it doesn't mean it's accurate at all. 


It certainly doesn't mean, as we hear from clients all the time, that your house has already went up 40% in value … and it doesn't mean your house automatically 30% of value is just a barometer of value based on a system last year. 


It also definitely means you shouldn't try to appeal it to get that a little bit higher so you can pay more taxes.


Anyway, what it does mean and what is an unquestionable truth these days is that houses across Canada, and for that matter,

North America, are up in value. 


And it means you have more equity in your house simply because houses have gone up in value vs a year ago… and by no other reason, whether you've done repairs, whether you've done anything to your house.


What you have to think about are just a few things. 


First of all, a lot of people may look at this market and go, “is now the time to sell?” 


“Maybe I should cash out and take that money.”


This could be a useful strategy, especially if you're thinking about downsizing or you're thinking about moving to a market that may be less expensive.


However, remember the market’s up everywhere. 


So, even though you will sell high you will also buy high, so many of the gains that you will have achieved, you'll also see that when buying and so you'll more or less transfer your equity.


It doesn't mean it's a bad idea, but that it’s a worthy consideration. 


In fact, this is the same logic that I would say to somebody that's selling a home feeling the market is depressed. 


They're selling low but they're buying low as well. 


Now, the worthy conversation is whether or not the equity in your home needs to be put to work. 


We put up blogs and videos on this all the time. 


But now is the time to review your equity options. 


If you haven't already, even if you look at doing a refinance or did a refinance in spring or summer of last year, it may be time to relook at that again. 


The first thing you ought to look at is if now is the time to do renovations. 


If you are up for major renovations such as your roof, such as your siding, or things that are big ticket items, now's the time to get that cash at a very very low cost to you. 


Down the road, it might be more difficult to finance those repairs that you inevitably have to do. 


Of course, now it's also time to think we're updating that flooring, that painting, that floor plan, all that type of thing in your home.

 
But you can look at more unconventional ideas as well: Is now the time to add an addition? 


Is now the time to add an extra suite? 


All of those things will achieve extra income in your house that could more than pay for the nominal $50 $100 extra you're paying on your mortgage payment. 


If we move off of renos, now's the time to look at any high interest debt that you might be carrying. 


Maybe it's credit cards, maybe it's car loans, maybe it's student loans…


Now's the time to roll those into the mortgage at a lower rate. 


Now you'll hear people say that this can be a problem in doing so. 


As you don't really pay off the debt, you just move it. 


Now a more higher level strategy on something like this is to say I'm going to continue to pay the same amount of money but have that money applied to my mortgage. 


So I'm paying it off at a much more aggressive rate, meaning I'm going to pay it off faster and cheaper, paying less interest over time.


After that, you ought to look at the fact that there could be some opportunity to leverage your equity for other investments. 


Certainly business investment can make sense. 


Certainly there could be some investment you could be making in all types of things. 


These ideas, with the help of a good qualified professional, may make sense for you. 


But in particular, now may be the time to look at other real estate investments. 


Maybe you're thinking about buying a piece of land.


You could maybe buy that piece of land with cash from taking the equity out of your home. 


Maybe you're thinking about buying that second home, which might be a condo for kids to live in during the time they go to college. 


Or maybe it's a home that your elderly parents will live in for a while. 


Or maybe it's a second home you're going to be using for a recreational basis. 


Maybe that's a beach home or maybe that's a ski home. 


All of these things are options that you could utilize the equity without tapping into your hard earned savings or other investments you might have that could cause you very dearly when it comes to taxes. 


It's a good idea for you to get a hold of us so we can review all your equity options and make sure that you are doing things that may make a lot of sense in order to achieve your wealth goals in the next coming year. 


Don't wait until you've missed out on further market gains. 


Let's make sure we go through some options today and see what makes sense for you. 


Now of course, you may also decide that now's the time to take advantage of low interest rates and aggressively pay off your mortgage to be mortgage free faster. 


That of course is an option too, but again this is why it makes sense to schedule a time so we can go through some great options and see what works best for you.


Schedule your call today!

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Joel Olson
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Collateral vs. Standard Mortgage: Pros and Cons Explained

By Joel Olson • January 20, 2026
Mortgage Registration 101: What You Need to Know About Standard vs. Collateral Charges When you’re setting up a mortgage, it’s easy to focus on the rate and monthly payment—but what about how your mortgage is registered? Most borrowers don’t realize this, but there are two common ways your lender can register your mortgage: as a standard charge or a collateral charge . And that choice can affect your flexibility, future borrowing power, and even your ability to switch lenders. Let’s break down what each option means—without the legal jargon. What Is a Standard Charge Mortgage? Think of this as the “traditional” mortgage. With a standard charge, your lender registers exactly what you’ve borrowed on the property title. Nothing more. Nothing hidden. Just the principal amount of your mortgage. Here’s why that matters: When your mortgage term is up, you can usually switch to another lender easily —often without legal fees, as long as your terms stay the same. If you want to borrow more money down the line (for example, for renovations or debt consolidation), you’ll need to requalify and break your current mortgage , which can come with penalties and legal costs. It’s straightforward, transparent, and offers more freedom to shop around at renewal time. What Is a Collateral Charge Mortgage? This is a more flexible—but also more complex—type of mortgage registration. Instead of registering just the amount you borrow, a collateral charge mortgage registers for a higher amount , often up to 100%–125% of your home’s value . Why? To allow you to borrow additional funds in the future without redoing your mortgage. Here’s the upside: If your home’s value goes up or you need access to funds, a collateral charge mortgage may let you re-borrow more easily (if you qualify). It can bundle other credit products—like a line of credit or personal loan—into one master agreement. But there are trade-offs: You can’t switch lenders at renewal without hiring a lawyer and paying legal fees to discharge the mortgage. It may limit your ability to get a second mortgage with another lender because the original lender is registered for a higher amount than you actually owe. Which One Should You Choose? The answer depends on what matters more to you: flexibility in future borrowing , or freedom to shop around for better rates at renewal. Why Talk to a Mortgage Broker? This kind of decision shouldn’t be made by default—or by what a single lender offers. An independent mortgage professional can help you: Understand how your mortgage is registered (most people never ask!) Compare lenders that offer both options Make sure your mortgage aligns with your future goals—not just today’s needs We look at your full financial picture and explain the fine print so you can move forward with confidence—not surprises. Have questions? Let’s talk. Whether you’re renewing, refinancing, or buying for the first time, I’m here to help you make smart, informed choices about your mortgage. No pressure—just answers.
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Everything You Should Know Before Buying a Home

By Joel Olson • January 13, 2026
Thinking About Buying a Home? Here’s What to Know Before You Start Whether you're buying your very first home or preparing for your next move, the process can feel overwhelming—especially with so many unknowns. But it doesn’t have to be. With the right guidance and preparation, you can approach your home purchase with clarity and confidence. This article will walk you through a high-level overview of what lenders look for and what you’ll need to consider in the early stages of buying a home. Once you’re ready to move forward with a pre-approval, we’ll dive into the details together. 1. Are You Credit-Ready? One of the first things a lender will evaluate is your credit history. Your credit profile helps determine your risk level—and whether you're likely to repay your mortgage as agreed. To be considered “established,” you’ll need: At least two active credit accounts (like credit cards, loans, or lines of credit) Each with a minimum limit of $2,500 Reporting for at least two years Just as important: your repayment history. Make all your payments on time, every time. A missed payment won’t usually impact your credit unless you’re 30 days or more past due—but even one slip can lower your score. 2. Is Your Income Reliable? Lenders are trusting you with hundreds of thousands of dollars, so they want to be confident that your income is stable enough to support regular mortgage payments. Salaried employees in permanent positions generally have the easiest time qualifying. If you’re self-employed, or your income includes commission, overtime, or bonuses, expect to provide at least two years’ worth of income documentation. The more predictable your income, the easier it is to qualify. 3. What’s Your Down Payment Plan? Every mortgage requires some amount of money upfront. In Canada, the minimum down payment is: 5% on the first $500,000 of the purchase price 10% on the portion above $500,000 20% for homes over $1 million You’ll also need to show proof of at least 1.5% of the purchase price for closing costs (think legal fees, appraisals, and taxes). The best source of a down payment is your own savings, supported by a 90-day history in your bank account. But gifted funds from immediate family and proceeds from a property sale are also acceptable. 4. How Much Can You Actually Afford? There’s a big difference between what you feel you can afford and what you can prove you can afford. Lenders base your approval on verifiable documentation—not assumptions. Your approval amount depends on a variety of factors, including: Income and employment history Existing debts Credit score Down payment amount Property taxes and heating costs for the home All of these factors are used to calculate your debt service ratios—a key indicator of whether your mortgage is affordable. Start Early, Plan Smart Even if you’re months (or more) away from buying, the best time to start planning is now. When you work with an independent mortgage professional, you get access to expert advice at no cost to you. We can: Review your credit profile Help you understand how lenders view your income Guide your down payment planning Determine how much you can qualify to borrow Build a roadmap if your finances need some fine-tuning If you're ready to start mapping out your home buying plan or want to know where you stand today, let’s talk. It would be a pleasure to help you get mortgage-ready.