QUESTION:
How does one access home equity with the recent release of the property assessments and the substantial increases shown?
ANSWER:
With a record real estate market across many provinces in 2021, many Canadians have recently received their property assessment showing anywhere from a 20-50% property value increase inside of the major markets. One of the key opportunities for Canadians who have seen these substantial property increases is to put their home equity to use to achieve other financial goals or to assist with increasing their existing wealth.
Have you been putting off your dream kitchen renovation for years now? Have you always wanted that cottage on the lake, or the cabin across the border? Maybe all you are looking for are additional funds to invest into your portfolio. With the recent property value increases, now could be the perfect time.
There are two main ways to unlock the equity in your home. The first is by adding a home equity line of credit to your existing mortgage financing. This allows you access to your home equity when you want to take it. This product has a higher rate of interest than your standard mortgage but provides much greater flexibility. The second option is to refinance your existing mortgage. You may be able to not only lower your existing rate of interest but incorporate the funds for that dream renovation or the down payment on your first investment property.
Many Canadians today are using these two strategies to quickly achieve their long-term financial goals. If you are not putting your home equity to work, you are likely missing out on wealth building opportunities. – Tyler Wilson, Pilot Mortgage Group, http://www.wearepilot.ca
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