Many people find that one of the easiest and most affordable ways to access money is through the equity that they have accumulated in their home. This is a very popular option, especially when you have an excellent first mortgage in place.
Using home equity to your advantage
In years past, many saw their homes as a shelter of safety, yet today, they are more than ever before willing to borrow against the equity owned in their homes, to further their investment portfolios, get out of debt, send their children to university, make improvements to their home, or even boost their RRSP contributions. Where home equity was once sat upon, today it is often used to one’s advantage. Every time you make a mortgage payment you’re building up your equity. As the equity in your home grows, so does your financial flexibility. Your home becomes an extra source of financing if you ever need it or when the unexpected happens.
You can use the equity you’ve built up in your home as a cost-effective way to finance all kinds of goals and dreams. The benefit of borrowing money against the equity in your home is that it usually comes with a lower interest rate than other forms of credit, such as consumer loans, lines of credit and credit cards.
Reasons to refinance and access the equity in your home:
Renovate or repair your home – build an addition, landscape the yard, add a swimming pool, create an income suite, modernize your kitchen and bathrooms, replace the roof, create an outdoor kitchen/entertainment area, finish the basement and more. By the way, all these ideas add value – and even greater equity – to your home!
- Consolidate and pay off other debts with higher interest rates, like credit cards
- Fund important life events such as a wedding, anniversary trip or dream vacation
- Fund your child’s post-secondary education
- Purchase investments, a second home or vacation property
- Start a new business
Give me a call and let’s see which solution would suit your needs best.