Using home equity to your advantage

 

Home ownership has proven to be a good stable investment over the long term.  Many Canadians have made sacrifices to pay down their mortgages as quickly as possible but this can lead to a shortfall in savings at times; especially when it comes to big ticket purchases.  In some situations, it may be advantageous to take out some of your equity as the cost of mortgage debt is lower than most other credit.

More Canadians than ever before are using their equity to help them through the tough times or finance large purchases.  Using your home equity to make strategic investments like paying off your high interest debt, getting those needed home improvement projects done, helping your kids with tuition or even supplementing your retirement income can make a lot of sense.

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