Canadians today face many reasons to refinance their mortgage. For
example, you may have been working at improving your credit score and
now qualify for a new mortgage with a better discount, or you may want
to stabilize your payments by changing from a variable rate mortgage to
a fixed-rate. Refinancing is also a good option to pull out equity for
consolidating debt, home improvements, investments, college expenses,
and more.

Learn about HOME EQUITY

Many people find that one of the easiest and most affordable ways to
access money is through the equity that they have accumulated in their
home. This is a very popular option, especially when you have an
excellent first mortgage in place.

Using home equity to your advantage
Canadians purchase homes for a variety of reasons. Some want the
stability of owning their own home, while others also look at home
ownership as an investment vehicle. No matter what the reason, the
truth is that home ownership has proven itself to be a good stable
investment over time, and one which many Canadians are profiting from.

While many people have chosen to purchase their first home during
these times of lower interest rates, there has also been a large
movement to refinance home loans and pull out equity for home
improvements, investments, college expenses, and even high interest
debt consolidation. Canadians have been borrowing against their
home's equity in record numbers, taking out billions of dollars in cash
each year.

In years past, many saw their homes as a shelter of safety, yet today,
they are more than ever before, willing to borrow against the equity
owned in their homes to further their investment portfolios, get out of
debt, send their children to university, make improvements to their
home, or even boost their RRSP contributions. Where home equity was
once sat upon, today it is often used to one's advantage.

While removing equity from your home can be a good idea, you should
do so with caution and fully understand the benefits and possible risks.
The best thing you can do is to consult a licensed mortgage professional
and financial planner to discuss opportunities to make your home's
equity work for you.
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