As your home appreciates in value over time, you may be able to access the equity that you have built. Equity is the difference between the market value of your home and what’s remaining on your mortgage.
You can use that equity to help achieve other important goals in your life, such as:
- Financing a big purchase
- Making home improvements
- Consolidating debt
- Sending your children (or yourself) to college or university
- Buying a vacation home
- Starting or bolstering your investments
Why Leverage the equity in your home?
Often, a borrower’s largest portion of net worth is in their home. If they have owned it for a number of years and the property has appreciated in value, they have often accumulated a great deal of equity. If the home owner requires funds for any purpose, an equity take out a mortgage will usually make better financial sense than other means of borrowing as loans secured by property are usually offered at better interest rates than those secured by other means or unsecured entirely.
How to get Started?
At The Mortgage Architects best Mortgage Broker in Toronto we have a number of equity take out options available. If you have substantial equity in your property and are considering borrowing against it, we will assist you in selecting the appropriate solution that meets your needs.
THE HOME BUYING PROCESS
Required Mortgage Documents Checklist
- Current employment and amount of income such as:
- Copy of recent pay slips
- Evidence of recent pay deposited electronically
- T1 General and associated Notice of Assessment (NOA)
- Previous employment (if required)
- Additional income sources (if any)
- Savings or investments statement from within the last 90 days
- Sale of an existing property – a copy of the sale agreement
- Withdrawal from RRSP through the Home Buyer’s Plan, if applicable
- Gift Letter
- A list of current assets and liabilities
- Bank account and transit number for payments
- Your CIBC Pre-Approved Mortgage Certificate, if applicable
- A copy of the real estate listing
- A copy of the accepted purchase and sale agreement
- The property’s full address, including legal description and postal code
- Property tax estimates, condo fees and heating costs, (usually available on the real estate listing)
- For rural properties, well and septic certificates
- Lawyer’s name, address, postal code, telephone and fax number
