Accessing Your Property’s Equity
In addition to helping people all over Canada buy new homes and acquire rental properties, a big part of what I do involves helping people access the existing equity in their home.
What is existing equity?
Quite simply, this is the difference between your current mortgage balance and your property’s value.
Currently, lenders will allow us to access a maximum of 85% of the value of your property if it’s your principal residence. (This percentage might be lower if the property is a rental).
• Your current mortgage balance is $200,000 and your current property value is $450,000.
• 85% of $450,000 = $382,500, and this amount less your $200,000 mortgage balance = $182,500.
• This $182,500 is the equity in your property that we could have access to.
What could you use your existing equity for?
The beautiful thing about accessing your equity is that in the end, it’s a lump sum of money that can be used for a variety of purposes.
My clients’ most common uses for their existing home equity include:
-Consolidating their credit cards or student loan debts
-Settling divorces or separations
-Participating in investments that have the potential to make them more money
-Doing major home renovations (kitchen, bathroom, landscaping, roof, etc)
-Putting a down payment on a rental property or second home
-Re-doing their existing mortgage to save money on their monthly payments
Who have I helped recently to access their home equity?
Stay tuned for case studies of actual clients I’ve recently assisted in next month’s newsletter
What are some investments that I could use my equity to make money with?
THE ROYAL OAK INCOME TRUST in the ROYAL VISTA BUSINESS PARK:
>>A fixed income investment with superior land security
In our world of uncertainty, how does experiencing a 10% growth in your investments sound?
If this sounds like music to your ears, then I would like to introduce you to my friend Karcy Carruthers who represents a company called Prime Funds. They are a Real Estate Investment company that offers solid and strategic investment opportunities that include a unique combination of security and growth. Prime Funds offers alternative investments that focus on the creation of wealth in the highly lucrative and profitable real estate market of Alberta.
Prime Funds’ goal is to turn investors into wealthy partners that profit from their experiences and guidance. They do this by identifying and securing prime parcels of land and converting them into active real estate developments. Through proper planning, diligence and strategic action, their investments can create prosperity for all.
Passive Cash Income Flow:
Investors receive a 10% simple annual return paid monthly to their account, or sent to them in the mail. The return is payable as interest income from a fully funded interest reserve account. This gives you peace of mind and allows you to manage your return risk.
Prime Funds takes advantage of sophisticated fund strategies to minimize risk for their investors. They have carefully researched and selected “prime” land which provides for shorter timelines to exit from that the project and move onto their next project.
The Royal Oak Income Trust has multiple layers of security to buffer any market fluctuations. By acquiring units of this “Private Mutual Fund Trust”, you retain ownership of the trust and all of its assets directly. This trust is a separate legal entity from Prime Funds Inc. and all other projects.
This investment is fully eligible for all registered plans: RRSP, LIRA, TFSA, RRIF and unregistered accounts.
For more information on Prime Funds’ terrific real estate investment opportunity, please contact Karcy at the following: