Everyone has a different goal at the end of their personal finance journey: whether it’s paying for their education, emerging from debt, obtaining the working capital they need to start an entrepreneurial venture, or simply finding ways to have more money left over at the end of the month. For a large number of Canadians, the dream of home ownership drives their desire to improve their financial health and literacy.
In a national housing environment where major markets such as Vancouver, Toronto, Saskatoon and Montreal are dealing with the consequences of overvaluation and the increasing pressure of overbuilding, sound decision-making and advice are critical. Once you have decided to put in the significant effort of managing your personal finances to both afford a mortgage and keep abreast of the cost of living, you may have to deal with increasingly tight regulations on the housing market. Much as with day-to-day personal finance, the best solution for any Canadian who is concerned about their own situation is to make sound decisions, not just for today, but with an eye on their long term stability.
Home equity is considered by many to be a “crown jewel” in the bigger picture of personal finance. It is a valuable and powerful tool that, like other steps in a wider financial plan, allows you the freedom to make decisions and choices. In a market with increasingly tough regulations that have made the application process harder for Canadians who may have experienced financial setbacks in the past, we know that many people want to have access to this kind of flexibility, but may need a second chance at an opportunity to borrow the money they need.
In short: you have the right to financial freedom, even as the societal attitudes toward living and home ownership are in a state of evolution. The widely popularized idea that home ownership may be “out of reach” for a generation of Canadians needs to be challenged, and the financial tools should be made available to those who need them without creating an undue strain on their debt load and overall financial health.