With all the uncertainty surrounding Canada’s proposed capital gains tax changes, many property owners are asking, “Do I have to pay capital gains if I sell my house?” or “Should I sell my investment property before the tax rules change?”

In June 2024, the federal government proposed increasing the capital gains inclusion rate—the portion of capital gains that is taxable. This change could significantly impact investors and property owners selling secondary residences, rental properties, or cottages.

But here’s the challenge: the rules haven’t been finalized yet. As Jamie Golombek explains in a recent Financial Post article, “Uncertainty remains as to what the final capital gains tax rules will look like, or even if they will be implemented at all.”

Despite this uncertainty, the Canada Revenue Agency (CRA) has announced it will proceed with collecting taxes based on the proposed higher inclusion rate until a final decision is made. This means that even if you sell now, you could still face a larger tax bill. If the rules are later changed or rejected, the CRA may adjust tax filings—but in the meantime, selling could cost you more than you expect.

The good news? Selling isn’t your only option. If you need access to cash or want to better manage your finances, refinancing or exploring alternative lending solutions could provide the flexibility you need—without triggering a large tax bill.

Ways to Access Cash Without Immediately Selling

If you need funds but aren’t sure whether selling is the best choice, here are some flexible ways to access cash while holding onto your property:

1. Refinancing Your Mortgage

• Access tax-free cash by using your home equity.
• Adjust your mortgage terms to fit your financial needs.
• Keep your property and continue building long-term wealth.

2. Alternative and Private Lenders

• Flexible lending options with easier qualification.
• Quick access to funds without selling your property.
• Short-term solutions to manage cash flow.

3. Reverse Mortgage (For Canadians 55+)

• Access tax-free equity with no monthly payments.
• Stay in your home while improving cash flow.
• Ideal for retirees on fixed incomes.

4. No-Payment Loan Options

• Interest-only or deferred payment loans.
• Manage expenses without immediate financial pressure.
• A flexible option to bridge financial gaps.

Comparing Your Options: Sell or Keep Your Property?

It’s important to weigh the pros and cons before making a decision. Here’s a simple comparison of selling versus other financing strategies:

Let’s Build a Strategy That Fits Your Goals

Whether refinancing, working with private lenders, or considering a reverse mortgage, understanding every option is essential. I work closely with your accountant to create a strategy that helps you minimize taxes and achieve both your short- and long-term financial goals.

I offer a clear, side-by-side comparison of all your financing options so you can make the best decision for your financial future.

📞 Call me at 416-882-4172
📧 Email me at mortgages@dannycardoso.ca

Know someone else who’s unsure about what to do? Share this post—many Canadians don’t realize they have options beyond selling.

Let’s talk about what works best for you.

As a mortgage broker, your role in empowering clients with the right information has never been more crucial. As we step into 2025, the dynamic mortgage landscape offers unique opportunities and challenges. This blog is designed to help you educate and guide your clients, ensuring they make informed financial decisions while maximizing their homeownership potential.

2025: A New Year, A Fresh Start in Mortgage Planning

With the start of a new year, your clients are setting goals for financial security, whether they’re first-time buyers, homeowners considering refinancing, or investors expanding their portfolios. Here are key trends and strategies to focus on:

1. Adapting to Market Trends
   • Rising Interest Rates: With fluctuating interest rates still in play, educating clients about fixed versus variable rates can empower them to make decisions tailored to their financial goals.
   • Shift in Housing Demand: Urban areas continue to see growth, while suburban markets remain attractive for families seeking affordability and space.
2. Mortgage Renewal Strategies
   • Remind clients that renewing their mortgage isn’t just about locking in a rate. Encourage them to explore options like increasing their payment frequency or switching lenders to optimize their finances.
3. Equity Utilization
   • Many homeowners are sitting on untapped equity. Educate your clients on how to leverage equity for renovations, investments, or consolidating debt without compromising long-term financial health.

Building Confidence Through Education

Clients rely on you for clear, actionable advice. Use these key areas to provide value:

• Pre-Approval Process: Walk clients through the benefits of securing pre-approval to enhance their negotiating power in competitive markets.
• Affordability Insights: Share tools and calculators to help clients determine what they can realistically afford.
• Debt Management: Equip clients with strategies to reduce liabilities and improve their borrowing capacity.

Communication: The Heart of Client Success

Seamless communication builds trust. Use these tips to enhance your client relationships:

• Leverage Automation: Tools like drip campaigns can keep clients informed with timely updates and helpful content.
• Personalized Touchpoints: Tailor your outreach with specific advice, such as market updates or reminders about upcoming rate changes.
• Family Involvement: Encourage clients to involve their families in key decisions, particularly when exploring multi-generational living or co-signed mortgages.

Collaborative Solutions: Partnering for Success

Mortgage brokers thrive when working collaboratively with other professionals. Foster partnerships that can enhance the services you offer to clients:

• Real Estate Agents: Provide a unified front to help clients navigate both the buying process and mortgage options.
• Financial Planners: Aligning with financial advisors ensures clients have a holistic view of their financial health.
• Legal Experts: Simplify the legal complexities of homeownership by connecting clients with trusted legal professionals.

Looking Ahead: Your Role in 2025

This year, focus on being a trusted advisor for your clients. Whether it’s navigating market uncertainties or maximizing homeownership potential, your guidance can make all the difference.

Let’s make 2025 a year of growth, confidence, and smarter financial decisions for all.