Vancouver Homeowners Tapping Into Equity at Alarming Rates
With Vancouver real estate prices surging over the past few years homeowners are tapping into their equity (refinancing) at alarming rates. It’s important to understand refinancing and how CMHC quantifies refinancing. “The consumer had a mortgage previously, opened a new mortgage in the current year, the address did not change, and the total mortgage balance increased by more than 10%.” The big takeaway in this scenario is that homeowner mortgage balance had to increase by more than 10% to quantify as a refinance. As per the latest data from CMHC, Vancouver homeowner refinancing (drawing equity) increased 27% year over year.