Owning a home involves much more than simply putting a roof over you and your loved ones.

It means taking on years of debt and financial risk that, if done properly, could become your bedrock financial asset. 

With the cost of housing skyrocketing across Toronto and the GTA, people are struggling to get into the housing market. However, existing homeowners may not realize how much equity they’ve already built up.

Let’s check out a few ways that professional mortgage brokers can help balance your finances by unlocking your home’s equity, even if you don’t have a great credit history.

Refinancing

There are a few reasons why a person may want to refinance their mortgage. Perhaps you may want to settle for a lower interest rate payment or shorten the mortgage’s term. If your credit needs sorting, it’s best to obtain intelligent, professional support from a mortgage broker like Burke Financial, specializing in subprime mortgages.

Existing homeowners have more lending options than they may realize, even if they struggle with credit issues. But they can’t weigh what they don’t fully understand. If you’re curious about what terms you may get by refinancing your home, speak to a specialist today.

Home Equity Loans

If you’re a homeowner with considerable consumer debt, it may make sense to unlock your home’s value by borrowing against a more updated valuation of your property. Owning property is an excellent investment because it almost always only goes up over the long-term, and when they eventually sell it off, favourable tax policies let homeowners take home a larger percentage of the money.

However, if you need a financial boost today, it may make more sense to access some of the equity you’ve built up over the years by using it as collateral for a loan. 

Relying on a mortgage broker for this rather than a bank frees you from the strict lending criteria. If you need to solidify outstanding debts or pay for a renovation that will add to your home’s equity, a home equity loan or second mortgage may be ideal.

Debt Consolidation Mortgage

Bundling existing debts doesn’t only simplify payment processes that may be expensive and complicated. It can also lower your monthly payments by up to 75%. Look for a professional mortgage broker who gives you personalized care and puts your interest ahead of everything else.

Lots of people feel boxed in by their finances. It’s important to remember that there are always paths you can take to free up and improve your finances, even if your credit score is below 650. If you need debt relief, look for a top-rated firm accredited by the Better Business Bureau.

Homeowners face no shortage of stresses, from roofs that need repairing to countless other expenses. However, they also have assets at their disposal they can advantageously use if they work with an experienced mortgage broker who has their back. Keep the above tips in mind, and your home’s equity can help balance out your finances.