6. You can use your equity for…Anything!

6. You can use your equity for…Anything!

On a $500,000 mortgage loan with 5% down, you will be paying 4% CMHC fees. That’s a total of $19,000!

Taking out a second mortgage along with the first mortgage is one way borrowers can avoid PMI. A second mortgage can add a monthly payment to your budget, but can be a cheaper option than PMI.

One of the most attractive benefits of buying a home is the potential to use the equity you have built up over time. Why let it sit there? Let that money you’ve earned start working for you!

You can use the funds however you’d like, but many people choose to use a second mortgage for home improvements, other investments, a child’s college education, an emergency fund, and more.

One popular usage of a second mortgage is to make an investment, like buying a rental property. Instead of saving up 20% for a down payment, you can tap into the equity of your existing home. The bonus of using a second mortgage for investment purposes is that the entire interest on that loan now becomes a tax deduction . Continue reading “6. You can use your equity for…Anything!”