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
Here in Grande Prairie and Northern Alberta, we purchase homes for a variety of reasons. Do you want the stability of owning your own home, or is home ownership as an investment? No matter your reason, home ownership has proven to be a stable investment over time, one which many Northern Albertans profited from.
You might have chosen to purchase your first home during when rates were low, but most Canadians will end up refinancing their home to pull out equity for home improvements, investments, college expenses, or debt consolidation. We Canadians borrow against our home equity a lot, taking out billions of dollars cash each year.
Homes are more than your largest most stable asset. You can borrow against the equity in your homes to enhance investment portfolios, get out of debt, send kids to university, improvements the kitchen, or boost RRSP contributions. It’s very common to use your home as a way to get ahead.
While removing equity from your home can be a good idea, be cautious and fully understand that the benefits can come with risks. The best thing you can do is to consult a licensed mortgage professional and financial planner to discuss opportunities to make your home’s equity work for you.