Home values for some properties in the Okanagan have increased by at least 30% and in some cases even more. It doesn’t look like the values are going to drop anytime soon.
Homes are worth more, and as a result, equity has increased, which means you now have more equity available to eventually access.
What is home equity?
Home equity is the difference between the value of your home and the amount you owe on the mortgage. If you qualify, you can borrow up to 80% of your home’s appraised loan value.
What can you use the equity in your home for?
You can use the equity in your home for all purposes, but here are some of the most common demands we’ve seen lately.
Investing in real estate—Many now recognize the opportunities in investing in real estate to create wealth. Some are first-time rental property buyers looking to build a portfolio of investment properties over the years, but many are closer to retirement and are now buying rental property hoping it will become their home. main later.
Real estate can be a great investment to add to your portfolio for long term investment and to create income. Using the existing equity in your primary residence could be the way to start building your portfolio.
Home renovations—With the current lack of inventory, many are now looking to renovate and upgrade their current homes rather than move. This can be accomplished either by setting up a home equity line of credit or a brand new fixed term mortgage as interest rates are lower. A complete financial review with a mortgage broker is the first step in determining which option is best.
Buying a Vacation Property—Many dream of a family vacation property. By setting up a home equity line of credit, you can access funds for the down payment on a vacation property.
High Interest Debt Consolidation—With interest rates still at historic lows, now might be a good time to consider eliminating high-interest credit card debt, unsecured lines of credit, or car loans.
Refinancing for debt consolidation has many advantages, including:
• A much lower monthly interest rate for all your debts
• Reduce monthly payments by getting a lower mortgage rate or extending the term of the mortgage
• The comfort and convenience of making one monthly payment instead of making multiple payments on your credit cards and other loans
• Improve your credit score by reducing the amount you owe and now being able to make all your payments on time
Not sure if accessing your home equity is right for you? The numbers don’t lie. Let’s run them together and then you’ll have an honest, unbiased recommendation and action plan.
Call me at 1-888-561-2679 for a no-pressure consultation to run the numbers.