Get your Mortgage Working for You! 

They say mortgage debt is good debt, and that is true due to the fact you are accumulating equity with every dollar you pay down.  As well, historically, property in the GTA appreciates year-over-year, making your asset worth more with every passing year. 

What is important to remember is your mortgage, and your home are only part of your financial picture.  Knowing your whole picture is important as it will determine how you make financial decisions moving forward.  Taking an overview of your household debt will help determine how to get your money working for you wisely. What you need to ask yourself is if your current mortgage is helping or hurting your long-term financial goal.

If you have a mortgage, there are ways to get your money working for you.  Let’s examine three ways to help you make your money work for you: 

  • Use the equity to manage debt
  • Refinance to manage debt
  • Downsize to manage debt 


As the owing amount on your mortgage decreases and the value of your home increases, the bank will lend the mortgage owner a percentage of the difference.  This percentage is your home equity.  Using home equity to square your debt in other areas can be an essential part of your debt strategy.  Creating a long term strategy that includes debt management is something you can discuss with your mortgage broker.  Your mortgage broker will provide options to ensure your mortgage is working for you and you are paying the lowest possible interest rates.


Refinancing involves increasing the size of your mortgage and using the excess funds to alleviate debt in other places.  If you have credit card debt of $50, 000 you can refinance your mortgage to add $50, 000 to the total owning amount.  Use the extracted $50, 000 to pay off the credit card debt. This way, you will be able to roll the amount owning into your growing asset at a much lower interest rate.  Refinancing will help to alleviate large minimum payment requirements allowing increased cash flow. 


The home you are in may no longer be serving your needs.  If you are in a home that is carrying a large mortgage and yet it is no longer serving your needs, consider downsizing.  Selling your home will give you cash in your pocket, and as you downsize, you will have a reduced mortgage, or better yet, no mortgage.  With all the different options and layouts on the market, there will be a home that will fulfill your needs and give you the financial freedom to breathe. 

Is your mortgage is helping or hurting your financial situation?  Let’s sit down and review how to best manage your cash flow. There are a plethora of solutions that we can explore to ensure your financial health.  Let’s connect today!



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