Keep your Equity in Your Hands

Mortgages with re-advanceable HELOC’s help you keep the equity of your home in your hands to use when you want without re-qualifying.

This past year was like no other. Home prices increase at unprecedented levels in 2020. Homeowners are now wanting to gain access to that equity for debt payment, purchasing a cottage or renovation property or available on a line of credit.

The new stress test makes it more difficult for some homeowners to gain access to the extra equity due to home values increasing.

A mortgage with a re-advanceable line of credit allows you to have access to up to 80% of the value of your home and you can have a fixed mortgage payment and a line of credit component. As you pay down the mortgage principal the line of credit limit goes up. This allows you to gain access to the equity in your home for future use. If you want to purchase a car, second home, or finance a child’s education you can gain access to the funds you need without going to the bank and re-qualifying. The line of credit because it is secured to the home is at the lowest rate. The interest rate is lower than an unsecured line of credit or credit card so better for borrowing needs.

These products are a little harder to qualify for, however, once you have it in place you should have all of your financing needs taken care of.