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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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.

Best Mortgage Options for Canadian Homebuyers

By Joel Olson • January 6, 2026
Thinking of Calling Your Bank for a Mortgage? Read This First. If you're buying a home or renewing your mortgage, your first instinct might be to call your bank. It's familiar. It's easy. But it might also cost you more than you realize—in money, flexibility, and long-term satisfaction. Before you sign anything, here are four things your bank won’t tell you—and four reasons why working with an independent mortgage professional is the smarter move. 1. Your Bank Offers Limited Mortgage Options Banks can only offer what they sell. So if your financial situation doesn’t fit neatly into their guidelines—or if you’re looking for competitive terms—you might be out of luck. Working with a mortgage broker? You get access to mortgage products from hundreds of lenders : major banks, credit unions, monoline lenders, alternative lenders, B lenders, and even private funds. That means more options, more flexibility, and a much better chance of finding a mortgage that fits you. 2. Bank Reps Are Salespeople—Not Mortgage Strategists Let’s be honest: most bank mortgage reps are trained to sell their employer’s products—not to analyze your financial goals or tailor a long-term mortgage plan. Their job is to generate revenue for the bank. Independent mortgage professionals are different. We’re not tied to one lender—we’re tied to you. Our job is to shop around, negotiate on your behalf, and recommend the mortgage that offers the best balance of rate, terms, and flexibility. And yes, we get paid by the lender—but only after we find you a mortgage that works for your situation. That creates a win-win-win: you get the best deal, we earn our fee, and the lender earns your business. 3. Banks Don’t Lead with Their Best Rate It’s true. Banks often reserve their best rates for those who ask for them—or threaten to walk. And guess what? Most people don’t. Over 50% of Canadians accept the first renewal offer they get by mail. No questions asked. That’s exactly what the banks count on. Mortgage professionals don’t play that game. We start by finding lenders offering competitive rates upfront, and we handle the negotiations for you. There’s no guesswork, no pressure, and no settling for less than you deserve. 4. Bank Mortgages Are Often More Restrictive Than You Think Not all mortgages are created equal. Some come with hidden traps—especially around penalties. Ever heard of a sky-high prepayment charge when someone breaks their mortgage early? That’s often due to something called an Interest Rate Differential (IRD) —and big banks are notorious for using the harshest IRD calculations. When we help you choose a mortgage, we don’t just focus on the interest rate. We look at the whole picture, including: Prepayment privileges Penalty calculations Portability Future flexibility That way, if your life changes, your mortgage won’t become a financial anchor. A Quick Recap What your bank typically offers: Only their own limited mortgage products Sales-focused representatives, not mortgage strategists Default rates that aren’t usually their best Restrictive contracts with high penalties What an independent mortgage professional delivers: Access to over 200 lenders and customized mortgage solutions Personalized advice and long-term financial strategy Competitive rates and terms upfront Transparent, flexible mortgage options designed around your needs Let’s Talk Before You Sign Your mortgage is likely the biggest financial commitment you’ll ever make. So why settle for a one-size-fits-all solution? If you're buying, refinancing, or renewing, I’d love to help you explore your options, explain the fine print, and find a mortgage that truly works for you. Let’s start with a conversation—no pressure, just good advice.