You can use your home equity to pay for education. With the skyrocketing cost of post-secondary education and higher incomes that don't qualify for special grants and student loans, this is a popular solution. You can also use your home equity to open an RESP and make before tax contributions.
When Debt
Can Increase
Your Net Worth
Can Increase
Your Net Worth
Making money isn't
just about cash.
just about cash.
Making money isn't just about cash. If you are acquiring property that holds or appreciates in value, you are increasing your net worth. The cost of the loan may be justified on this basis.
When Debt Can Increase
Here are some examples:
- Renovating your home. With a growing family, you may not have the cash to do the renovations when your need for space is greatest. If you wait you will lose the opportunity to raise your children in a nice home. As well renovating increases the value of your home giving you better options if you decide to move. My eco mortgage, at Capital Direct.
- Buying a vacation property. In many parts of Canada, real estate prices in cottage regions are soaring. Buying now gives your family the benefits, and the financing cost may be lower than what you would pay if you wait and buy at a higher price.
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