If you have outstanding debt yielding high interest rates, consolidating your debt into your mortgage will not only lower your monthly payments and interest but could free up money to invest.

Are you planning a large purchase?

If you are planning a renovation or making a large purchase, accessing equity in your home to pay for these purchases will secure a low interest rate. A Line of Credit Mortgage will give you even greater flexibility as home improvment costs can fluctuate.

Do you need money for investments?

If you are considering investing in stocks or mutual funds for example, accessing your home equity is a great way to free up cash and secrure a low rate. You do however need to weigh out the risks and potential returns of the investment and consider the cost of borrowing to see if this approach makes sense for you.

Are you thinking about buying more real estate?

Accessing equity in your current home to invest in more real estate is a common lending strategy to diversify property holdings.

For other investment opportunities such as new business and other ventures, accessing equity in your home to financing such a project could risk your net worth and should be seriously considered along with advice from your lawyers, accountants and your financial planner.

What is your current loan to value?

If you own a home that is completely paid off, taking out equity to invest in stocks or topping up RRSP's may make sense. The equity you are sitting on is doing nothing for you - except appreciating in value (hopefully) that you only realize once you sell your home. Even if you have a smaller mortgage you may want to consider accessing the equity for investment purposes.

Getting a line of credit mortgage for investments or home renovations can make sense financially for you by offering great payment flexibility and a means to reaching your financial dreams.