Mortgage Tips: Home Equity

 

You're able to access up to 80% of the current value of the home through mortgage financing. This can be combined with a mortgage and secured/home line of credit (HELOC). 

 

$1,000,000 Property Value x 80% = $800,000 Total Mortgage/HELOC Allowed

 

$500,000 current mortgage balance leaves you with $300,000 available equity to access = $800,000 Total 

 

An important piece to know if you must be able to qualify to borrow those funds based on your credit, income, and debts.  

 

Home renovations

Paying off debts

Buying another property (i.e. rental or cottage)

Buying a vehicle

Investments (i.e. RRSP, Stock market, TFSA, etc.)