The 2018 Mortgage Consumer Survey by CMHC unveils the top 4 reasons Canadians refinance (increase or change) their mortgage.
- Consolidate debt (credit cards, lines of credits, car loans, etc)
- Fund home improvements/renovations
- Fund financial investments (eg stocks, securities)
- Purchase of investment rental property(ies)
The majority of those that refinance are between the ages of 35 and 55+ and have a household income of $60,000 to $90,000.
More than 1/4 of refinancers indicated their current level of debt, including their mortgage, is higher than expected. More than 1/4 also do not have a monthly budget. If you find yourself in this 1/4 of individuals a refinance is an optimal time to sit down and set that budget.
Many of those renovating, 44%, rely on their savings to finance their renovations. Secondary sources include Home Equity Lines of Credit and credit cards.
The full Refinancer survey is available here: Canadian Mortgage Refinancers Insights