Owner · Strategy
Coquitlam owners with significant equity often face the question: extract via refinancing or sell and move on? The answer depends on tax, lifestyle goals, and the specific math of your property. Here's the framework.
Quick Answer
Should i sell or refinance coquitlam?
Coquitlam owners with significant equity often face the question: extract via refinancing or sell and move on? The answer depends on tax, lifestyle goals, and the specific math of your property. Here Craig Johnston, Top 1% Team Member — Greater Vancouver REALTORS® and 47+ year Tri-Cities resident, can walk you through the local context. Free Strategy Call ends with a written one-page plan in 24 hours.
Verified · Owner · Strategy
Sell — Pros
Capital gains tax-free if principal residence. Net proceeds in cash. Move on to different lifestyle, downsize, relocate. Eliminates property risk.
Sell — Cons
Closing costs (legal + commission + adjustments). Property Transfer Tax on next purchase. Capital appreciation foregone if market continues to rise. Housing-gap risk.
Refinance — Pros
Stay in the home and lifestyle you've built. Access equity without triggering tax (refinance proceeds are not taxable). Continue any future appreciation.
Refinance — Cons
Mortgage interest cost on the refinanced amount. Stress test must be passed at higher loan amount. Lender appraisal required. Some refinance scenarios trigger CMHC insurance.
Tax position
Principal residence sale is generally capital-gains-tax-free in Canada. Refinance proceeds are not income. Both are tax-favorable for owner-occupiers — different mechanics.
Stress test for refinance
Federal stress test still applies on refinance. Qualifying rate is the higher of the contract rate + 2% or the OSFI benchmark. Make sure you can pass at higher loan amount before counting on refinance.
LTV constraints
Refinance LTV in Canada typically capped at 80% of appraised value (no insured refinance available since 2016).
When sell wins
If you no longer use the home, lifestyle has fundamentally changed (job move, kids gone), or you're hitting retirement and want to deleverage.
When refinance wins
If you still love the home, want to access equity for renovation/investment/business, and the long-term appreciation outlook is positive.
No pressure. No obligation. Just a 30-minute call to talk through your specific situation.
When you need to access the equity in your home, selling and refinancing are two very different answers. The right one depends on what you're actually trying to accomplish.
Refinancing
Refinancing lets you borrow against your home's value while continuing to live in it — useful when you want cash for a project or consolidation and have no reason to move.
Selling
Selling converts all your equity to cash and resets your housing situation. It's the path when your needs have changed — more space, less space, a different location or life stage.
The costs
Refinancing can carry penalties, legal and appraisal fees; selling carries commissions, moving and closing costs. Weigh the real friction of each against what you'll gain before deciding.
Refinance if…
If the home still fits your life and you simply need capital or a better mortgage structure, refinancing usually beats uprooting yourself — you keep the asset and its future appreciation.
Sell if…
If the reason you're looking at equity is really that the home no longer suits you, refinancing only delays the move. In that case selling addresses the actual problem.
Qualifying
Refinancing means re-qualifying at current rates and rules, which may or may not work in your favour. Your lender's numbers are central to whether the option is even open to you.
This is a decision that turns on your specific mortgage, equity, rate and goals, so use the framework to organise your thinking and then run the real numbers with the right professionals.
Craig can give you an honest read on the selling side — what your Coquitlam home would realistically fetch today — so you can compare it against a refinance with real figures rather than assumptions.
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