(2025 Edition: Smarter Moves in a Tighter Market)
In a market where interest rates remain stable and inventory is limited, many Montreal homeowners are asking:
“Do I have to sell my home to benefit from my property’s increased value?”
The answer: Not at all.
In 2025, homeowners are getting more strategic—and creative—when it comes to tapping into their home equity. Here’s how you can leverage your property to build wealth, generate income, or improve lifestyle without putting that “For Sale” sign on the lawn.
1. Refinancing to Access Equity
If your home’s value has gone up in recent years (and it likely has if you purchased more than 3-4 years ago), you may be sitting on substantial untapped equity.
How it works:
You replace your current mortgage with a new one that reflects your property’s increased value — allowing you to pull out the difference in cash. This strategy is often used for:
- Paying off higher-interest debt
- Funding renovations
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Making a down payment on an income property
Note: In Quebec, refinancing is typically capped at 80% of your home’s appraised value. The good news is that if you purchased a home earlier than 2022, your home definitely has a good amount of equity in it and you can use that cash for tons of different opportunities!
2. Opening a Home Equity Line of Credit (HELOC)
A HELOC (home equity line of credit) lets you borrow against your home’s equity as needed, like a credit card but with better interest rates (yay!). Many Montrealers are using HELOCs for:
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Emergency/Rainy day funds
- Business investments
- Tuition or education upgrades
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Buying a cottage or secondary residence
The big win: You only pay interest on what you actually use, making it a flexible financial safety net – You might have access to 100,000$, but you aren’t paying for it until you use it!
3. Converting Part of Your Home into a Rental
With rents rising across the island, and less inventory becoming available to tenants, more homeowners are turning basements, garages, or top floors into legal rental units. Even short-term rentals—if properly zoned—can bring in serious cash.
Common conversions:
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Basement bachelor suites // Act quickly as the city of Montreal will become stricter on this in the near future!
- Top-floor rental with separate entrance
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Garden suite or “intergenerational” apartment
Bonus: You may qualify for subsidies or grants for energy-efficient renovations on rental units.
4. Upsizing Without Selling (aka Keep & Buy)
Traditionally, people sell their home to buy another. But in today’s market, some homeowners are holding onto their current home as a rental while buying a new one—especially if their mortgage is locked in at a low rate.
This strategy can work if:
- You have enough equity to use as a down payment on the next property
- Your current home has strong rental potential
-
You’re financially stable enough to hold two properties
5. Renovate to Increase Long-Term Value
If selling isn’t urgent, some are using this time to reinvest in their property—with upgrades that improve quality of life and boost resale value down the line.
Top 2025 renovations that pay off:
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Energy-efficient upgrades (heat pumps, insulation, windows and doors)
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Kitchen and bathroom refreshes (always a big winner)
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Adding a bedroom or closing open space for a home office.
Final Thoughts
Selling isn’t the only way to make the most of your property in 2025. With the right strategy, your home can be a tool—not just a shelter—for long-term wealth and security.
Curious about what’s possible with your home equity? Let’s chat—I’ll help you run the numbers and explore your options without pressure.
