How to Build Home Equity Faster & Make the Most of Your Investment

Buying a home is a big financial milestone—and for many people, it’s the biggest investment they’ll ever make. But beyond having a place to call your own, your home can become a powerful tool for building wealth over time. One of the best ways to maximize the value of your investment is by focusing on building home equity.

In simple terms, home equity is the portion of your property you truly own (the market value of your home minus what you owe on your mortgage). The faster you build equity, the more flexibility you’ll have down the road—whether that’s renovating your home, investing in a second property, or planning for retirement. Here are a few ways to accelerate that growth:

1. Make Larger or Extra Mortgage Payments

This is one of the easiest ways to grow your equity faster. Putting even a little more toward your mortgage each month can make a big impact over time.

Here are a few ideas to get started:

• Switch to biweekly payments instead of monthly. This adds up to one full extra payment per year.

• Use bonus income, tax refunds, or other windfalls to chip away at your mortgage.

• Round up your monthly payment to the nearest hundred.

Every extra dollar goes directly toward your principal, which means you’re paying off your loan faster and paying less interest in the long run.

2. Choose a Shorter Loan amortization

If your budget allows, opting for a 15- or 20-year mortgage (instead of the typical 25 or 30 years) can help you build equity much faster.

With a shorter amortization, it is also possible to get a lower interest rate—and more of your biweekly payment will go toward the principal instead of interest. When you pay your mortgage off faster (shorten the amortization) you give the lender less interest (less time = more savings)

3. Increase Your Home’s Value

Another way to grow equity is by boosting your home’s market value. Strategic renovations and regular maintenance can go a long way.

Projects that typically have a strong return on investment:

• Kitchen or bathroom updates

• Energy-efficient upgrades (like windows, HVAC, or solar)

• Landscaping and exterior improvements

Before you take on a major renovation, make sure you understand the potential return based on local market trends. I usually call my listing agent for their feedback and perspective before doing a major update/ renovation.

4. Refinance to a Better Rate

If interest rates have dropped since you got your mortgage—or if your credit score has improved—it might be worth looking into refinancing. Lowering your rate means more of your payment goes toward principal instead of interest.

You could also consider refinancing into a shorter term to speed things up, as long as the new monthly payment fits your budget.

5. Make a Larger Down Payment

If you're still in the home-buying stage, a larger down payment means starting off with more equity right from day one. Putting down 20% or more not only reduces your mortgage amount, but it also helps you avoid default mortgage insurance, which can save you thousands over the years.

6. Be Careful with Equity-Backed Loans

Home equity loans and HELOCs can be helpful in the right situation, but overusing them can eat into your equity quickly. If you’re borrowing against your home, make sure you have a clear repayment plan and a good reason for doing so. If you are planning on carrying a balance a mortgage might be a better tool than a heloc. Send me a note to examine the best tool for your next reno or debt consolidation.

7. Keep an Eye on the Market

The real estate market shifts, and your home’s value can be influenced by local trends, interest rates, and economic changes. Staying informed helps you make smart decisions—like when to refinance, sell, or invest in improvements.

Here’s how to stay in the loop:

• Follow local real estate stats and updates

• Chat with a REALTOR® or mortgage broker who knows your market

• Pay attention to neighbourhood developments and infrastructure projects

Bottom Line: Building equity is a long game, but small, consistent actions can make a big difference. Whether you're paying down your mortgage faster, renovating strategically, or refinancing at the right time, the goal is to strengthen your financial foundation so you can make the most of your investment.

Have questions or want to chat about your mortgage goals? Visit www.emilycallme.com.