What is Home Equity?

Home Equity is the difference between the value of your home and the remaining mortgage balance on it. Your Home Equity increases as you pay off your mortgage and as your home goes up in value.

Let's do some math. Let's say that the value of your home is $1,000,000 in Vancouver. That means probably a two bedroom condo. You have currently $300,000 left on your mortgage. So that's your outstanding mortgage. You subtract these two numbers you get $700,000.

Now what is this? This is your equity. So that's how you calculate it. Follow me for part two to find out how much of that home equity you can take out. Small hit, it's not the full 700,000!