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Cash Flow

Blog by Jamie Palmer | June 30th, 2017

July 1, 2017

Cash Flow

The Bank of Canada is suggesting that it will be raising its overnight lending rate, which is what banks base their “prime rate” on. So you can expect to see variable mortgage interest rates raising, and likely fixed rates rising soon after that. In the current rental market rents are still somewhat depressed, as such, it can be difficult to have properties that produce positive cash flow. One of the ways you can help achieve positive cash flow is to refinance your rental properties. Right now you can get still get rates under 2.5% on a five-year term, if you have a higher interest rate than that, it may be worth refinancing. Refinancing can also lower payments in other ways. Typically, mortgages are amortized (paid off) over 25 years, but did you know you can pay them off over 30 years, and you can even re-amortize an existing mortgage back up to 25 or 30 years. The longer the amortization the lower the monthly payments. Now granted extending the amortization will mean you pay more interest, but you can deduct the interest from your income on your tax returns on rental properties, and most mortgages allow you to make additional principle payments of up to 15% of the principle should you find yourself flush with cash.

If you would like to discuss your refinancing options I can without hesitation recommend:

Triston Rans
Phone: 403.276.9788
Fax: 1-866-919-9353
Email: triston@tristonrans.ca

I have worked with Triston for almost fifteen years, and she has always shown herself to be a source of knowledge, professionalism and of course she gets great rates. 

Power Properties will be closed Monday, July 3rd in recognition of Canada’s 150th Birthday.

Kind regards,

Jamie Palmer CPM, B.Sc. (Hon), Realtor®


Power Properties