One of the most cost effective and simplest ways to gain access to money is to leverage the equity you’ve already accumulated on your home. This option has proved to become a popular choice for many Canadians who already have a mortgage.
How to Take Advantage of Home Equity
There are plenty of rationales for which Canadians decide to purchase homes. Whether it be for the stability gained from owning your own property, or the opportunity to use property as a vehicle for investment. Regardless of the reason, it’s been proven that investing in a home is profitable, and provides a stable asset over the long term.
Due to the low interest rates of our current time, many individuals choose to purchase a home for the first time. However, there is also a motivation for some to take advantage of low interest rates by refinancing their home loans to liquidate equity for various purposes, including investments, children’s college expenses, home improvements, or even debt consolidations. Compared to previous generations, Canadians are now leveraging against the equity in their portfolio more than ever before.
It was common to see your home as a safety net in previous years, however, people are now willing to borrow money from existing value in their assets. Some other reasons that motivate this financial decision are to grow the spread of their portfolios, prepare university tuitions for their children, eliminate debt, perform home renovations, or allocate more funds to their RRSP’s.
Before leveraging your equity, it is suggested that you always proceed with caution. Be sure you fully comprehend the possible risks associated with this decision as well as the potential upside. To decide what you’d like to accomplish with your existing equity, it is best to get in touch with Chanele Langevin to ask the appropriate questions. It is also recommended to touch base with a financial advisor to discuss where your opportunities exist and determine your threshold for risk. Staying informed is half the battle when it comes to your financial future. These days it is becoming more and more important to learn and educate yourself on ways to develop the financial outlook for your family. While working longer hours at your job or place of business, and taking less days off, you want to make sure you are comfortable taking advantage of every ounce of capital available to you.