Home Equity & Home Equity Lines Of Credit (HELOC)
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
Canadians purchase homes for a variety of reasons. Some want the stability of owning their own home, while others also look at home ownership as an investment vehicle. No matter what the reason, the truth is that home ownership has proven itself to be a good stable investment over time, and one which many Canadians are profiting from.
While many people have chosen to purchase their first home during these times of lower interest rates, there has also been a large movement to refinance home loans and pull out equity for home improvements, investments, college expenses, and even high interest debt consolidation. Canadians have been borrowing against their home’s equity in record numbers, taking out billions of dollars in cash each year.
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.
While removing equity from your home can be a good idea, you should do so with caution and fully understand the benefits and possible 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
Home Equity Lines Of Credit or HELOCs for short are an excellent tool to have immediate access to your home’s equity without having to pay any interest until you decide to use or draw down the line of credit. We have many different options and lenders who can help with this time of product. Even if you have bruised credit, there are some options.
Many HELOC products will allow you to lock in certain portions into fixed rate mortgages and even allow you to attach other credit products to your line of credit like a credit card.
HELOCs can offer the ultimate in mortgage flexibility and allow you to pay of your mortgage much faster than a traditional mortgage. You will need to have at least 20% equity and some excellent financial dicipline.
Contact us today to see if a Home Equity Line Of Credit is right for you,