Equity Takeout Toronto

Equity Takeout is a financial product that allows you to take advantage of your home equity. Home equity refers to the difference between all your existing mortgages and your property’s appraised value.
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Equity Takeout Toronto

For most homeowners in Toronto, their home equity is often the biggest component of their net worth. Equity Takeout is used to “take out” equity to use for other purposes. Some of the most common uses of Equity Takeout are:
  • Home Renovation: Of the $41 billion in equity takeout in 2016, a recent survey shows that 31% (or $12.8 billion) was used for renovation/home repair. One reason for this is that home renovations are expensive and saving a lump sum is not always easy.
  • Paying down debt: Some debts are more expensive and urgent than others. You can use equity takeout to consolidate debt (to pay off expensive debt for which you are paying high-interest rates and get a cheaper one). Taking care of bad debt will improve your credit score. 28% of those surveyed said they used the cash for debt consolidation.
  • Education: Education in Canada is not cheap and it cannot wait until the end of the amortization period. If you feel that a professional certificate will further your career, equity takeout is a good idea.
  • Home Renovation: Of the $41 billion in equity takeout in 2016, a recent survey shows that 31% (or $12.8 billion) was used for renovation/home repair. One reason for this is that home renovations are expensive and saving a lump sum is not always easy.
  • Paying down debt: Some debts are more expensive and urgent than others. You can use equity takeout to consolidate debt (to pay off expensive debt for which you are paying high-interest rates and get a cheaper one). Taking care of bad debt will improve your credit score. 28% of those surveyed said they used the cash for debt consolidation.
  • Education: Education in Canada is not cheap and it cannot wait until the end of the amortization period. If you feel that a professional certificate will further your career, equity takeout is a good idea.
Mortgage Offers
pick the one thats right for you.
  • get
    $ 2,000
    on purchase over
    $500, 000
  • Receive
    $ 1,400
    when you transfer
    your mortgage of over $500,000
  • complimentary
    12 months
    Home service plan
    fint out more
Featured Rates
Fixed
  • Lender
  • Rate
  • Term
  • Toronto-Dominion
    3.04%
    5 years
  • Scotiabank
    3.04%
    2 years
  • MCAP
    2.99%
    5 years
  • CMLS
    2.84%
    3 years
  • RFA
    2.64%
    5 years
  • First National Bank
    2.74%
    5 years
  • DUCA
    3.84%
    1 year
  • B2B
    3.19%
    2 years
  • Meridian
    2.79%
    5 years
  • RMG Mortgage
    2.69%
    5 years
Variable
  • Lender
  • Rate
  • Manulife Bank
    2.74%
    5 years
  • Home Trust
    3.00%
    5 years
Other
  • Type
  • Rate
  • Secured line of credit
    4.45%
  • Private mortgages
    5.99%
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The Equity Takeout may be a variable rate arranged like a line of credit (where you withdraw case at your discretion) or a fixed rate.
Traditional lenders in Toronto allow you to borrow not more than 80% of your home’s equity while private lenders go up to 85%. The Canadian government implemented this guideline in response to the 2008 credit crunch to ensure borrowers do not overstretch themselves. This means if your home equity is $200,000 as per our example above, you can get a maximum of $160,000 with a traditional bank. If you are hard-pressed for cash and you don’t have any other source, you may have to go to a private lender. However, you expect to pay higher interest rates with a private lender. There are several equity takeout options available to Toronto borrowers. At Approved Mortgage Broker, we will guide you on the best takeout option given your particular circumstances. Different lenders have different equity takeout terms – we will help you hunt and negotiate for the best deal. You need an experienced mortgage broker by your side because it is in a lender’s best interest to give you the highest possible interest rates. Contact the Approved Mortgage Broker team today for professional guidance throughout the process.


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What our CLients Say
Approved
  • Avatar gilles veilleux ★★★★★
    Masoud and his team are truly focused and result driven. I did my refinancing with them, it went smooth from start to finish.
  • Avatar Roosevelt Freeman ★★★★★
    I used Nick to renew my mortgage. He found me a better deal than my bank could offer and I intend to use him again the next time I need to renew. Nick did all the work, he made it easy and simple for me. He really knows his stuff!
  • Avatar Linda Howard ★★★★★
    After some unfortunate interactions with my previous mortgage broker trying to close the deal I was recommended Approved by a friend of a friend. I didn't have my hopes high to be completely honest, however decided to give it a go and called Masoud. He was quite reassuring over the phone, and after our meeting I finally felt like I'm in the right hands. Long story short, we closed the deal and most importantly I got a much better rate than expected. I already recommended Approved to my colleague, and I'm sure there'll be more referrals from me when the time comes
  • Avatar Juan Pearson ★★★★★
    Nick gave me great advice and fair rates to process my mortgage. Marianela, his assistant, was quick getting back to me and explained any questions about documents. Would highly recommend these guys.
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