{"id":3081,"date":"2022-05-27T17:18:20","date_gmt":"2022-05-27T21:18:20","guid":{"rendered":"https:\/\/canadianlending.ca\/brokers\/?p=2821"},"modified":"2022-05-27T17:18:20","modified_gmt":"2022-05-27T21:18:20","slug":"how-to-leverage-home-equity-to-set-your-clients-up-for-financial-success","status":"publish","type":"post","link":"https:\/\/staging.canadianlending.ca\/brokers\/how-to-leverage-home-equity-to-set-your-clients-up-for-financial-success\/","title":{"rendered":"House Rich, Cash Poor – How to leverage home equity to set your clients up for financial success"},"content":{"rendered":"

While a refinance or second mortgage can be extremely effective tools to help homeowners tap into home equity to achieve other financial goals, it\u2019s important to get the right advice before borrowing against the roof over their head. That\u2019s where you come in.<\/span><\/i><\/p>\n

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As summer approaches, there are many luxuries your clients may be interested in purchasing. Whether it’s a set of patio furniture, a\u00a0 boat or a lavish vacation, it\u2019s important for them to consider these splurges in the context of their overall financial picture. Particularly for those with significant equity, it could be tempting to use their home as an ATM to access cash quickly.\u00a0 There are both good and not-so-good reasons to tap into this resource. By guiding clients to be strategic about leveraging their home equity, you can help them reach their financial goals sooner.\u00a0 <\/span><\/p>\n

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Tapping into home equity can be extremely valuable, because it\u2019s a convenient and cost-effective way to borrow funds at a more favourable rate compared to credit cards and other short-term borrowing options. But it depends on what they\u2019re planning to use the money for. It\u2019s best to avoid using home equity for splurging on vacations or purchasing depreciating assets like furniture, cars or boats.\u00a0<\/span><\/p>\n

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On the other hand, a second mortgage is an excellent option for clients who want or need r to improve their current financial situation. Instead of using home equity to fund luxury purchases, it\u2019s better to use that equity to consolidate high-interest debt, purchase an investment property, fund home renovations or to cover tuition costs.\u00a0<\/span><\/p>\n

\"helping<\/p>\n

Add value to your clients financial outlook by helping them better understand the pros and cons of using their home equity, and using it effectively. Here\u2019s a few tips to set your clients up for success by getting their financial house in order in the short term so they can confidently indulge in that vacation or brand new car later on.\u00a0<\/span><\/p>\n

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