ACCESSING YOUR HOME’S EQUITY TO INVEST

Your home’s equity is one of the most powerful financial tools you have. Refinancing or opening a HELOC can unlock low-cost borrowing that’s often cheaper than personal loans or unsecured credit.

Here’s how homeowners access equity safely and strategically 👇

1️⃣ Understand how much you can borrow

Most lenders allow borrowing up to 80% of your home’s appraised value, depending on income, credit, and mortgage type.

✔️ equity based on current appraised value

✔️ subtract your existing mortgage balance

✔️ remaining amount becomes available to borrow

A mortgage broker can calculate your actual accessible equity and outline your options clearly.

2️⃣ Know the common reasons people refinance

Homeowners tap into equity for many financial goals.

✔️ renovations or upgrades

✔️ buying an investment property

✔️ debt consolidation

✔️ business funding

✔️ education costs

✔️ health or life-event expenses

Equity provides flexibility without the high interest of traditional loans.

3️⃣ Use equity for long-term investments

Borrowed funds can be used to build assets that grow over time.

✔️ rental properties

✔️ stocks or ETFs

✔️ bonds

✔️ mutual funds

✔️ RRSP or RESP contributions

Always review investment risks and returns with a financial advisor before borrowing to invest.

4️⃣ Understand costs involved in refinancing

Equity access may include some upfront or rolled-in expenses.

✔️ penalties to break your current mortgage

✔️ appraisal fees

✔️ title search + title insurance

✔️ legal costs to register the new mortgage

Most of these can be included in the new loan amount rather than paid out of pocket.

5️⃣ Review lender rules before moving money

Refinancing requires clean documentation of your down payment and bank activity.

✔️ lenders may request 90 days of history

✔️ unexplained deposits must be verified

✔️ moving money between accounts slows approval

✔️ credit and income must remain stable

Staying organized ensures a smooth refinance process from start to finish.

💬 Final Thought

Accessing your home’s equity can be a smart and efficient way to build wealth, consolidate debt, or fund major financial goals — but only when done strategically. The right mortgage structure protects your cash flow and helps maximize long-term returns.

If you’d like us to calculate how much equity you can access and which option fits best, message The Frontline Mortgage Group and we’ll walk you through it.