How to use your home’s equity

There are lots of benefits to homeownership, including of course building equity, and the freedom to use that equity towards financing elsewhere.

Firstly, what is home equity? It is the market value of a homeowner’s unencumbered interest in their property, also known as real property value. With each mortgage payment you make, you’re building equity in your home. You can think of this equity as a source of financing when the unexpected happens. Borrowing money against the equity in your home usually comes at a lower interest rate than other avenues as well.

How can you use the equity in your home?

• Pay off other higher interest rate debts, such as credit cards
• Renovate, repair or add on to your home
• For big life events: wedding, tuition, etc.
• Purchase a second home or vacation property
• Emergencies, such as injury or critical illness

Want more information on your specific situation? Feel free to contact me with your questions and comments.

Tags : calgary homebuying, calgary homeownership, calgary mortgage, calgary mortgage broker, home equity