Should You Refinance to Buy Another Property in Ontario? (2025 Investor Guide)

By Sol Yasin | Mortgage Agent Level 1
Kingsdale Mortgage Centre Inc. | FSRA License #13585
Call or Text: 647-207-0470

🎯 Thinking About Buying Another Property?

Strapped for cash but sitting on equity? Refinancing an existing property could unlock the capital you need — but in 2025’s market, it’s not always the right move.

In this guide, we’ll explore when it makes sense to refinance to buy another property in Ontario, and when it might backfire. I’ll also share real investor case studies to help you decide.

🧠 Why Investors Refinance to Buy Another Property

Refinancing allows you to:

• Unlock equity based on a new appraisal

• Leverage gains instead of letting equity sit idle

• Scale your portfolio faster than saving a new down payment

📌 Example: A client bought a townhouse in Kitchener for $520K in 2020. It’s now worth $700K. We refinanced to $560K, paid off the $390K balance, and used the extra $170K as a down payment on a triplex in Welland.

✅ Pros and ⚠️ Cons of This Strategy

✔️ Pros:

• Tax-free access to equity

• Accelerated portfolio growth

• Potential to improve cash flow with better terms

⚠️ Cons:

• Higher debt load

• Possible increase in monthly payments

• You’ll need to pass the current stress test

• Risk of low appraisal value

Always run a full mortgage analysis to ensure the numbers work before you proceed.

📈 Is This Strategy Viable in 2025?

Yes — but only for those who are prepared.

You’ll need to:

• Pass the stress test (2% above contract rate)

• Have strong credit and provable income

• Ensure the new property’s rental income supports itself

📌 Real Example: A couple in Mississauga refinanced their detached home, pulled $200K, and aimed to buy a $900K duplex in Barrie. They passed the stress test but fell short on income. We pivoted to a joint venture with a capital partner who co-qualified — and closed the deal.

🛠️ Smart Ways to Refinance for a New Purchase

Here are investor-tested strategies:

• HELOCs: Access capital without resetting your full mortgage

• Blended Mortgages: Add funds without breaking your current rate

• Equity Take-Out + B Lender: Refi with an A lender, buy with a B lender

• Refi + JV Strategy: Combine equity with a partner who can qualify

Each method has trade-offs — structure depends on your goals, credit, and income.

📞 Ready to Build a Refinance Strategy?

Thinking about refinancing to buy another investment property in Ontario? Let’s run the numbers together.

🔗 Book a free strategy call
🌐 Apply online
📞 Call or text: 647-207-0470

📍 Based in Ontario — helping investors across the province

Fixed vs Variable Rates for Investors in Ontario – What’s Smarter in 2025?

Published by: Sol Yasin | Mortgage Agent Level 1

Brokerage: Kingsdale Mortgage Centre Inc. | FSRA License #13585

Location: Ontario, Canada

🎯 Why This Decision Matters More Than Ever

Rates are high. Real estate activity is slow. And headlines are louder than ever.

But for serious real estate investors in Ontario, this environment is exactly when smart mortgage strategy matters most.

The choice between fixed and variable rates in 2025 isn’t just about getting the lowest number — it’s about protecting your cash flow, planning for future deals, and structuring your debt for growth.

Let’s break it down.

🔍 Who Am I to Give You This Advice?

I’m Sol Yasin, licensed mortgage agent in Ontario and active investor for over 15 years.

I’ve worked with hundreds of investors buying, refinancing, BRRRRing, and scaling portfolios across Ontario — and what separates those who grow from those who stall is almost always financing strategy.

That’s what this blog (and my YouTube channel Mortgages by Sol) is all about.

💼 Fixed vs Variable Rates for Investors

Let’s define the basics — with an investor lens:

✅ Fixed-Rate Mortgages

• Locked-in rate for 1–5 years

• Predictable payments

• Best for long-term holds or tight cash flow

✅ Variable-Rate Mortgages

• Fluctuates with the Bank of Canada’s prime rate

• Often lower to start — but higher risk

• Ideal for short-term plays, renos, or refinance strategies

Key Investor Considerations:

• Prepayment penalties: Fixed rates often carry IRD penalties, which can cost thousands if broken early. Variable usually has just a 3-month interest penalty — better for BRRRRs, flips, or early exits.

• Refinance timing: If you plan to pull equity within 1–2 years, variable or short-term fixed (1–2 year) can give you flexibility without harsh penalties.

• Alignment with your plan: Your mortgage term should support your exit plan, cash flow model, and portfolio growth — not just headline rates.

📊 What’s Actually Happening in 2025?

As of mid-2025, we’re entering a rate-cutting cycle in Canada. Inflation has cooled, and the Bank of Canada is beginning to ease up.

Here’s what that means:

• Fixed rates have already started to fall, as bond yields price in anticipated cuts.

• Variable rates remain high (for now), since lenders are cautious and prime hasn’t moved much yet.

• Some fixed-rate mortgages are now cheaper than variable — which flips the usual script.

👉 So don’t assume variable is always cheaper. In today’s market, you need to choose based on structure, penalties, and flexibility — not just rate.

🧠 What Investors Should Consider Before Choosing

Before picking a rate type, I walk every client through these four questions:

1. Cash Flow Tolerance

Can your property absorb fluctuations? Fixed offers predictability. Variable gives flexibility — with more risk.

2. Refi or Exit Timeline

Planning a BRRRR or value-add play in the next 12–24 months? Avoid fixed IRD penalties. Consider variable or a short-term fixed.

3. Lender Policy Differences

Trigger rates, blending rules, and prepayment privileges vary. The fine print matters.

4. Portfolio Growth Strategy

Want to buy again soon? You may want to prioritize flexibility and qualification power over rate.

🧱 What Most Investors Are Doing Right Now

Here’s what I’m seeing across my investor clients in Ontario:

• 🔒 1 to 3-Year Fixed Rates: For stability without a long-term commitment.

• 🔄 Variable Rates for BRRRRs & Flips: Lower penalty exposure and easier exits.

• 🧩 Mixing Strategies: Fixed for long holds, variable for short terms, and HELOCs for renos.

There is no one-size-fits-all answer — only smart structure based on your unique plan.

💬 Final Thoughts: Make the Move Before the Market Does

Uncertainty creates hesitation — but also opportunity.

The smartest investors in Ontario are positioning now, before the market heats up again. That means getting pre-approved, setting up your HELOC, and locking in flexible terms while others wait.

Need help reviewing your current mortgage, equity, or purchase plans?

📞 Book a Free Strategy Call

Let’s build your mortgage roadmap.

🔗 Book a free strategy call

🌐 Get pre-approved

📍 Based in Ontario — helping investors across the province

📋 Sol Yasin, Mortgage Agent Level 1

🏢 Kingsdale Mortgage Centre Inc. | FSRA License #13585

⚠️ Disclaimer

This blog is for informational and educational purposes only and does not constitute financial, legal, or mortgage advice.

Always consult a licensed mortgage professional before making any financing decisions.

Sol Yasin is a licensed mortgage agent in Ontario, FSRA License #13585, operating under Kingsdale Mortgage Centre Inc.