The Myplace Playbook // 048
Hey Everyone,
After last week’s note about using your mortgage to clean up debt, I got a bunch of texts that all sounded like:
“So… can I refinance to pay for ______?”
In most cases: yes.
When you refinance and pull equity from your home, you can generally use the funds for whatever you want (as long as it’s legal). A lender may ask the general purpose during the application, but they typically don’t require quotes, invoices, or receipts for how you spend the money. Their main focus is simple: can you qualify and comfortably make the new payment?
Here are the common ones I hear:
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Pay off credit cards / consolidate debt: very common, and often the biggest monthly cash-flow win.
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Renovations: improve the home and (sometimes) its value.
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Wedding / major life expense: usually better than carrying it on high-interest credit.
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Help the kids: down payment help, tuition, or getting them out of expensive debt, if it doesn’t derail your own plan.
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Buy a car: sometimes cheaper than auto-loan rates, depending on your situation.
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Start a business: can be a lower-rate source of capital, but it increases the stakes, plan it carefully.
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Invest: possible, but risk varies massively, this is one we should talk through carefully.
How it works (high level)
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We estimate your home’s value and your current mortgage balance
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We confirm what you qualify for (in Canada, refinances are typically up to 80% of the home’s value)
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We shop rates/terms and structure the payment
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Funds are advanced at closing
The only real question
Does this improve your monthly situation and fit your budget?
If your mortgage payment goes up, but you’re eliminating higher-interest payments and freeing up cash flow, it can be a smart move. If the new payment strains things, we rethink the approach.
If you want me to run the numbers
Just send:
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your current mortgage balance
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a rough home value
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how much you want to pull out
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what debts/payments you’re trying to replace (and their rates, if you know them)
No judgment, no lecture, just math and options.
-Andrew
Text me, right now! 250-919-5474
I don’t say this on a whim, I’m serious, if you text me now, I can show you exactly where you stand within a few hours. No stress, no pressure, no obligation.
Just a simple text that can put you at ease.