Equity Take Out Mortgages
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
- Home renovations
- Major investments
- Second properties such as cottages
- Boats & RV's
- To make an RRSP top up contribution (allowed by Revenue Canada)
- And more!
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
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
To find out if an Equity Take Out Mortgage is right for you contact
Kia Khajehnoori by Email
or phone 416-832-3969