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Your home has grown in value. Tap into that equity to invest, renovate, help family, or handle a major expense — at mortgage rates.
An equity takeout refinance replaces your existing mortgage with a larger one and gives you the difference in cash, up to 80% of the appraised value.
Take the appraised value, multiply by 80%, and subtract every mortgage and secured line registered against the property. What remains is your accessible equity, before costs.
The appraisal is the variable people misjudge. Your neighbour's listing price is not evidence; a lender-ordered appraisal using recent comparable sales is. We would rather set expectations with that number than with a hopeful one.
Take the money as a lump sum when the amount and the purpose are fixed — an investment property down payment, a business injection, a one-time family gift. You pay interest on all of it from day one, at the lowest available rate.
Take it as a readvanceable line of credit when the need is staged or uncertain. You pay interest only on what you draw, at a higher variable rate, and the room refills as you repay.
In Canada deductibility follows the use of the borrowed money, not the security behind it. Borrow against your home to buy an income-producing investment and the interest is generally deductible; borrow the same money for a vacation and it is not.
That makes record keeping essential. Where possible we structure the takeout so investment borrowing sits in its own account or segment, which keeps the trail clean if the CRA ever asks. Confirm the treatment with your accountant before you draw.
Breaking a fixed mortgage mid-term usually triggers an interest rate differential penalty. Before recommending a refinance we calculate it, then compare against a second mortgage or a HELOC placed behind the existing first, which avoids the penalty entirely.
Budget for an appraisal and legal fees on any refinance. On smaller takeouts those fixed costs can outweigh the rate advantage, and we will tell you when that is the case rather than write the deal anyway.
Unlike bank employees who work for one lender, mortgage brokers work for your clients. We're licensed professionals with a legal duty to find you the best solution—not push a particular product.
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