refinance / Home equity line of credit (heloc)

A refinance is typically to draw equity from your home to either consolidate debt, make a major purchase, or for investments (i.e downpayment on another property). 

In Canada, we can refinance to 80% of the value of your home. So if your home is worth $500,000, we can increase your mortgage to $400,000. Therefore if your existing mortgage is $300,000, that leaves $100,000 we can pull out for whatever you need. Using equity can be a good decision due to the low borrowing rates and ability to limit & set your monthly payments.

In times of lower interest rates, a refinance is very popular, as you can lower your rate AND tap into your equity at the same time. When rates are higher than your existing rate, you may want to look at a HELOC or Second Mortgage Product, provided your lender offers one with competitive rates. This allows you to keep your existing rate, while still tapping into the equity of your home.

A broker can easily look at your situation and advise the best course of action, so it’s certainly worth reaching out for some free & quick advice.