Why refinancing could be set for an uptick in 2022

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“What I think is going to happen for the year is that the really high values of sold properties are now going to be comparables used in refinancing.”

That means that a homeowner who may have valued their house at $1 million, but sees that their neighbour has sold their home for $1.3 million, could then have their home revalued to that amount upon appraisal – allowing them to refinance for home renovations, cottage purchases, to gain access to funds for pre-construction condos or houses, or simply to consolidate debts.

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“I think as real estate market prices will continue to increase, that will fuel high values that we’ll see on refinances, and we’ll see an even higher [number] of people that want to live a better life, or live for less, in the home that they already own,” L’Ecuyer said.

While many brokers may have become accustomed to a 50/50 split between purchase and refinance business in recent years, the prospect of a refi upsurge in 2022 means that they should be ready to make an adjustment – particularly with those supply issues meaning that purchase activity could slow as the year progresses, according to L’Ecuyer.

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