With all the doom and gloom in the news this summer regarding the trajectory of the market in the coming years it’s really no wonder that Canadians are generally feeling nervous about what the future holds for their homes, their mortgages and their overall wealth. But while I think it’s a great idea to stay informed and be diligent in setting yourself up for financial success, there is really no need to panic.
Now is actually a great time for homeowners to take advantage of today’s valuations, with Canadian equity remaining at an all time high. There are a number of methods we can use to tap into the wealth you have worked so hard to build into your home today and set you and your investment up to whatever the next few years might bring.
A simple refinance to pull equity out as liquid cash is one of the most streamlined ways to lock in your current value. If you have at least 20% equity in your home and market value has increased since your purchase, you may be able to refinance for a total greater than your balance left outstanding and walk away with the difference in cash - cash that can be invested and grown wisely for the next rainy day.
You may also be eligible to move into a re-advanceable mortgage for up to 80% of today’s value of your home. These innovative products bundle your mortgage and a rolling line of credit together so that with each mortgage payment you make, the amount of available credit you have available to you increases. So, no matter what happens to the value of your home in the coming years, you will always have access to today’s value in the form of valuable equity-secured credit.
Your home and your mortgage are powerful wealth building tools that can be used to create security for you and your family!
If you’ve got questions about how you can lock your wealth in today - give me a call