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.
Debt for
Non-Financial
Benefits
Non-Financial
Benefits
At times, you may want to go
in debt for something really
important to you that does
not provide a financial return.
in debt for something really
important to you that does
not provide a financial return.
This needs to be approached with more caution, because unlike wealth-generating investments, there is no financial "safety net" here to protect you.
Debt for Non-Financial Benefits
Here are some common examples.
- Financing a wedding. If your son or daughter is getting married, this is a once-in-a-life- time event. You may want to give your child the best you can afford, which will pay you back in memories for years to come.
- Financing a "once in a lifetime" vacation. I fit is a special wedding anniversary, you might want to take a long-deserved vacation. Many financially responsible individuals take extended trips with their families before the kids grow up.
To sum up, whether your goals are financial or personal sooner may be better than later, and your equity in your home can help you make it happen.
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