Getting a Mortgage: Refinance/Home Equity Take Out

“Equity take out” financing is available for various purposes such as Home renovations, Major investments, and more. Equity take out mortgage comes in two forms: the traditional fixed rate mortgage or a variable line of credit option. 

Refinance/Home Equity Take Out

“Equity take out” financing is available for various purposes such as Home renovations, Major investments, and more. Equity take out mortgage comes in two forms: the traditional fixed rate mortgage or a variable line of credit option.  Many times proceeding with a refinance will result in a lower mortgage rate than what you may be currently paying.

Equity Take Out Mortgages give you access to the equity in your home to invest as you see fit! Many Canadians have realized that, after years of home ownership, they have substancial equity in their home. In fact their largest single asset may be a large amount of equity tied up in their home. While being in an “equity rich” position is nice it may not always be the best use of your money.

This is where an “equity take out” mortgage can be very useful. “Equity take out” financing is available for various purposes such as:

Home renovations

Major investments

Second properties, such as cottages

Boats and RV's

To make an RRSP top up contribution (allowed by Revenue Canada)

And more!

Traditional Fixed Rate Mortgage or Variable Line of Credit

The equity take out mortgage comes in two forms: the traditional fixed rate mortgage or a variable line of credit option.

The traditional fixed rate mortgage provides stability in interest rates for a predetermined amount of time (such as a 5 year mortgage). It has limited prepayment options, with a 10-15% prepayment per year being standard.

On the other hand, the variable line of credit option has a fluctuating interest rate which is usually based on your lending institution’s prime rate and can change at any time. Flexible prepayment options make this form of financing attractive.

Call The Best Rate Mortgage Team Today for a Free Consultation

This offers an outline of the steps involved when buying a home and qualifying for a mortgage. But it has probably left you with a few questions. We would love to hear from you – please take the time to Contact Us if you have questions.