The term Equity Take out Mortgage is the process of "taking money out of your property" for a different purpose. Property values are constantly changing. After the credit crunch in 2008 the values of homes out West (Alberta/British Columbia) have really been hit hard. In some cases these valuation drops are so significant that there is a negative equity situation. Meaning, there is more money owed than the property is worth.
The rest of the country was a lot more fortunate with the valuations of homes. First off the home values didn't climb quite as high as the West, secondly the property values stagnated slightly but have since risen even more creating more available equity.
To find out if you have enough equity available for what you want to do, calculate the following:
80% of Estimated Market Value - Mortgage Balance(s) = Total Equity
The maximum that you can access for an equity take out is 80% of the Estimated Market Value. The Canadian goverment implemented this guideline shortly after the credit crunch.
Refinancing your mortgage
If you already have a mortgage on the property you will need to do a refinance in order to get the equity take out mortgage. The process of refinancing is simple. Basically, the broker will get you approved for the new mortgage and on closing the new lender will payout the old lender and you will get the left over money.
New equity take out mortgage
If your house is currently free and clear (meaning there are no mortgages on it) then you will need to create a new mortgage. All of the same guidelines must be followed, the only difference being that instead of the lender will not be paying off a previous mortgage. Instead, they will pay the money directly to you.
Use Jim Thornton for your equity take out mortgage
As a mortgage broker, my focus is to provide my clients the best experience. Whether that means getting them the best rate I can get, or it means providing them exlemplary service the outcome is the same -- a more than satisfied client. My goal is that you'll be so happy that you'll tell your family and friends about me.
To let me handle your equity take out mortgage, call toll free at 1-866-257-0158.