Finding Funds

You know the thrill you get from finding a forgotten $20 bill in the pocket of some clothing you haven't worn for awhile? Don't you wish you could "find" money like that regularly? You might actually have a lot more money in your home, just waiting to be discovered!

Here are two ways you may be able to find hidden household cash: By lowering your mortgage interest rate, and through your home equity.

Could your interest rate be lower?

According to the Canadian Association of Accredited Mortgage Professionals (CAAMP), Canadian homeowners renewing their mortgages last year were able to obtain interest rates 120 basis points lower than their previous rates. Those who renewed with a mortgage broker obtained the largest average-point reduction - 125 points - compared with an average of 114 points among those who renewed with a bank.

Even if your mortgage is not due for renewal, it's worth taking a look at today's rates. CAAMP reports that low interest rates have created a flurry of interest with homeowners considering early morgage negotiations. In fact, a full 15 percent of morgage-holders in 2009 refinaced before their morgage came up for renewal.

Putting your home equity to work

Canadians have a lot of equity in their homes - an average amount of $142,000, representing 52 percent of the value of their homes. And approximately one third of homeowners are mortgage free, and have an average of $322,000 in equity.

If you need money for debt consolidation, renovations, or any other needs, you may want to consider borrowing against your home equity.

Let's talk about these, and other ways, to "find" money in your home.

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