Home Staging & Real Estate

Home Equity Basics

Owning a home can be financially beneficial or very expensive, depending how you handle your assets and equity. It is always good to remember there are tools available to help alleviate financial stress and keep you on the path you want to be on.

Looking into the value of your home, or otherwise known as equity, is a great first step. Borrowing against your home’s value can provide you an opening to large amounts of money, and this type of loan is easier to qualify for because the loan itself is secured by the property.

There are many benefits to signing up with a private mortgage company for a home equity loan. These benefits are
mostly available because when a homeowner uses their home as collateral it allows the lender to make large funds available because, as mentioned earlier, the loan is secured with the property as collateral.

It is important to keep in mind home equity loans are loans secured with the residence you own. Whether it’s a home, condo, semi, triplex, commercial units or even a trailer on leased land, a private mortgage brokerage can assist you in accessing the equity you have built up over the years!

To properly define home equity, one must simply understand as you start to pay off your mortgage, your property will start to gain substantial value, otherwise known as home equity. If you pay off large sums of your mortgage and continue to do so over time your home equity will continue to rise.

Choosing what to do with that equity is a decision unique to every Canadian homeowner.

How about a “Home Equity Line of Credit”?

Just like a normal line of credit from the bank, private mortgage brokerages will offer Home Equity Lines of Credit to the customer that may not qualify with banks.

Use and reuse the money you have applied for, without worrying about paying it all back in one year. Home Equity Line of credits can be great if you are in need of a large sum of money.

home equity


Rates: Home equity mortgages usually have lower interest rates than an unsecured loan. This allows a private mortgage company to keep borrowing costs to a minimum.

Taxes: In the right situation borrowers may deduct portions of their home equity loan, especially when making improvements to the property itself. Inquire with your private broker today for more details.

Approval: Don’t let bad credit stop you. As a homeowner, a home equity mortgage may be easier than you think to obtain. A private mortgage agent understands you own your home, and that can help manage the risk involved in lending funds based on significant equity.

Always keep in mind when applying for a HELOC, you can use your funds however you see fit, although most homeowners use their funds for larger expenses such as renovations and remodeling improvements.

The HELOC is the most flexible option available because it allows the homeowner control over their loan. Interest rates are variable, but usually a private brokerage will offer the most competitive rates on the market. For more information contact your mortgage agent today.

From our mortgage family to yours, wishing you a happy and safe holiday season.

home equity


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