Canadians can borrow against their home’s equity. Home equity is the value of ownership built up in your home or property that represents its current market value, minus any remaining mortgage payments. This value is built up over time as you pay off the mortgage and when the market value of the property appreciates.
While removing equity from your home can be a good idea, you should do so only when fully understanding the benefits and possible risks. Consult a licensed mortgage professional and financial planner to discuss opportunities to make your home’s equity work for you.
Canadians have chosen to pull out equity for home improvements, investments, college expenses and even high interest debt consolidation. More than ever before, they are 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.