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The question is how much equity can I borrow

How much equity can I borrow from my home?

Generally speaking – when you are looking to refinance, which is the term that is used to take equity out of a property that you already own.

This term is still used even if you have a clear title property and do not have any mortgage financing against it.

When you already own the property, you must maintain a minimum of 20% equity steak in the property, This means that the maximum amount of Equity you can borrow from your property, OAC (on approved credit), is 80% of the current market value of the property less any amount outstanding.

If you have a 300k mortgage and your place is worth 600k, then the maximum equity that you can borrow is 180k. 80% of 600k gives you 480k, and then you have 300k that you already owe against the property so that leaves you the ability to take out 180k in equity.

As of the time of this writing, these are the rules in Canada.

There might be some options for you privately or in the secondary lending market. These options will typically come with fees and higher interest rates. Beware of any offers that say that they can offer you refinances above the 80% loan to value threshold.

In order to get a more clear picture, and the straight goods, consult with your friendly neighbourhood trusted mortgage broker. Who you work with matters, and especially in these types of scenarios where you are looking for specific answers, a trusted professional is your best bet.

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