According to Dictionary.com: the monetary value of a property or business beyond any amounts owed on it in mortgages, claims, liens, etc.


You worked hard to buy your home - saving, sacrificing, and working hard to obtain your dream. After some time, you've built equity in your home - now is time to think: how can I best utilize that equity?

There are several strategies where you may use the equity you've worked hard to build over the years;

  • Perhaps it's time to move up to a newer or larger home. With the increased equity in your home, it may be time to consider making the move without having to scrape together a down payment (you've already done that before!)
  • Maybe you would like to stay in your home and utilize the equity for other purposes. This might include a Home Equity Line of Credit to do some renovations around the house, use for investments, or perhaps that vacation you've been waiting to take.
  • Another strategy is to take the equity in your current home and use it as a down payment towards another property - either a rental home, or a vacation home. This has been a proven strategy for real estate investors.

So, how do you figure out - how much equity can I access from my home? Here's a fairly simple way to get a rough idea:

Take the estimated value of your home - some good ways to do this include looking at the value on your BC Assessment, or considering what other similar homes in your neighborhood have sold for recently. Once you have an idea on value, a conventional mortgage is up to 80% of the value. Here's an example;

Estimated value: $400,000 @ 80% = $320,000
$320,000 less existing mortgage amount = equity available to borrow.

These are just a few examples of how to utilize your equity - there are many others. Use our expertise to determine what's best for your unique situation