Published: December 5, 2014 • Last updated: January 6, 2021 at 8:28 am
One of the nice things about being in the real estate industry for so long is I have seen lots of examples of Canadians boosting their net worth dramatically by virtue of building equity in their home.
When I look back five, ten years ago, I see many young families who scratched together a five percent down payment and took the plunge, and now have $ hundreds of thousands of equity dollars in their homes.
To all the people who decry the high costs of home ownership, I challenge them to produce examples of people who chose to rent instead, and whose net worth has come anywhere close to matching their home-owning counterparts.
A large equity position in your home is very comforting. It’s awesome to know that no matter what, you have an ever-growing war-chest to help you tackle future retirement, or deal with any number of real-life scenarios you may face.
Some of our clients are now tapping into their equity, since interest rates are so extraordinarily low, and money is so cheap. Who knows how long that will last?
Here are the top reasons we see people using their home equity:
- To help buy an investment property
- To buy a second home or vacation home
- Pay for home renovations
- To invest in something with a handsome potential rate of return
- To help out their children, often to finance their education or to help buy their first home
- To help with the cost of supporting their aging parents
- To pay off higher interest debts
If you or someone you know is interested in understanding your options, give us a call at 416-989-1000 or send us an email at [email protected].
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- Pay off huge debts with home equity
Ross Taylor is recognized by his peers as one of Canada's pre-eminent difficult mortgage specialists. His ASKROSS blog and column in Canadian Mortgage Trends are focused on the intersection between mortgage financing and personal credit.
For more information, visit About Ross Taylor.