Leverage a Home Equity Loan to Invest

Put a home equity loan to work by investing in income properties or a business. Buying rental properties could give you income for life. So could buying a successful business, or starting a franchise in your community. 

Instead of leaving equity in your home for when you sell, you could start profiting now by taking out a home equity loan. You benefit from fixed term interest rates, and you can use a home equity loan right away. 

Unlike a home equity line of credit in Toronto, a loan is a stable way to borrow money you have definite plans for. Instead of using it here and there like a credit line, and paying only interest, a home equity loan lets you chip away at the principal and interest immediately.

How home equity lines of credit compare to loans. 

What is Your Home Worth?

You may have bought your home just recently and seen housing prices go way up, or bought awhile ago and steadily paid down your mortgage. The difference between the mortgage balance and your property’s fair market value is the total home equity loan amount available to borrow.

You can find out what your home is worth by:

  • checking MLS listings for prices of comparable homes
  • having a realtor estimate your home’s value
  • or hiring a real estate appraiser for a professional opinion.

What to know when you buy income property in Ontario. 

How a Home Equity Loan Works

Let’s say an appraiser tells you your townhouse is worth $349,950. Lenders will usually advance up to 80% of that ($279,960) in a home equity loan, but only if your mortgage is fully paid. Whether you put 5% or 25% down when you first bought your home, the holdback is typically 20%, roughly equivalent to a conventional, low ratio down payment. 

Now calculate your remaining mortgage amount:

$349,950 – $235,750 = $114,200

With $235,750 remaining on your mortgage, the most you can borrow as a home equity loan (80% of $114,200) is $91,360. That’s still a fair amount, and more than you may have been able to get if you didn’t own a home.

Questions to ask real estate lawyers in Ontario. 

Where to Invest Your Home Equity 

Buying investment property in Ontario is a risk, but less so than other tangible assets that depreciate more quickly, like vehicles. That’s why lenders are open to letting you use home equity for income property purchases. They have your first home, and now a secondary investment property, to fall back on if you default on mortgages or your home equity loan.

What’s the best place to invest your newfound wealth? 

  • Cities in the Greater Golden Triangle, where rental demand is high.
  • Communities like Waterloo that cater to college or university students.
  • Suburbs with strong, inflation-proof service sectors.
  • Anywhere renters can easily find steady work.

Buying commercial property in Ontario to make a profit. 

Axess Law for Home Equity Legal Services

When you need home equity legal services, ask an Axess Law real estate lawyer (Ontario only). We take your lender’s mortgage refinancing information, and finalize legal paperwork you need to add a home equity loan to new or existing mortgages.

How virtual real estate lawyer services work. 

Investing the proceeds from a home equity loan in an investment property? Our virtual real estate lawyers conclude real property purchases by reviewing your agreement of purchase and sale. We add essential clauses that preserve your financial interests, and give you the right to walk away if an offer to purchase is unsatisfactory.

Affordable Lawyers for Home Equity Legal Services

When you need home equity legal services, ask an Axess Law real estate lawyer (Ontario only). We take your lender’s mortgage refinancing information, and finalize legal paperwork you need to add a home equity loan to existing or new mortgages.

Investing the proceeds from a home equity loan in an investment property? Our virtual real estate lawyers conclude real property purchases by reviewing your agreement of purchase and sale. We add essential clauses that preserve your financial interests, and give you the right to walk away if an offer to purchase is unsatisfactory.

Business name registration (Ontario) for property owners.

Latent defects a seller fails to disclose in a SPIS (seller property information sheet), or doesn’t know about, can trip up your good deal. Axess Law real estate lawyers in Toronto, Greater Toronto Area, or Ottawa put your real estate deposit in a trust account until the deal concludes. If anything goes wrong, we make sure it’s returned, or refer you to trusted legal partners for advice on real estate deposit rules (Ontario 2021).

Close Investment and Commercial Property Sales

Axess Law has Ontario real estate lawyers near you anywhere in Ontario. Our virtual real estate lawyers can close commercial, investment, or residential property deals remotely. We use only secure, confidential software for online transactions. You can make a date to sign at one of our conveniently located Greater Toronto Area or Ottawa offices, or e-sign closing documents online. If it’s more convenient, our licensed legal professionals can even courier documents to your home or office.

Hire an Axess Law real estate lawyer in Ontario.  

Why You Need an Ontario Real Estate Lawyer

Our simplified, flat fee legal services cost you less than traditional law firms charge for the very same basic services. Selling costs just $799.99 and up plus HST, and you can buy property for $999.99 and up plus HST. We transfer title to property you own or buy for $649 plus HST. 

Completing a real estate transaction is convenient when you use our virtual lawyer services. And if you refinance your mortgage to get a home equity line or HELOC, we work with your lender to finalize the legal documents you need to sign to register new charges against your loan.

Book Mortgage Refinancing Appointments Online

Book appointments at times convenient for you using our convenient online booking form. We have open law offices in Greater Toronto Area and Ottawa, and can go online with you day or evening to discuss your next real estate transaction. Our virtual real estate lawyers are available anywhere in Ontario. Call our 1-647-479-0118 lawyer line for appointments or toll free to 1-877-552-9377

Axess Law has onsite parking, and easy transit access.

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