Define the purpose
Home improvements, a property purchase or consolidating debt each require a different repayment plan. Decide how much you need and whether you need a lump sum or ongoing access.
Compare borrowing structures
A refinance replaces or changes mortgage financing. A HELOC offers revolving access, subject to the lender’s terms. Rates, payment structures and qualification requirements differ.
Account for the costs
Include any payout penalty, legal fees, appraisal, discharge costs and the effect of a longer amortization. Borrowing against a home places that property at risk if payments are not maintained.
A useful starting checklist
- Mortgage statement and payout estimate
- Income documents
- Property tax and strata statements
- List of debts or intended use of funds