For many homeowners in Edmonton, their home isn’t just a place to live—it’s also one of their biggest financial assets. With home values continuing to rise, more people are tapping into their home equity to meet financial goals. Whether it’s paying off high-interest debt, funding renovations, or investing in opportunities, understanding how to use home equity wisely can make a big difference.

What Is Home Equity?

Home equity is the difference between your home’s market value and what you still owe on your mortgage. As you pay down your mortgage and property values increase, your equity grows. Homeowners in Edmonton can access this equity through various loan options.

5 Ways to Use Home Equity in 2025

Consolidating High-Interest Debt

With interest rates on credit cards and personal loans higher than ever, using home equity to consolidate debt can be a smart move. A home equity loan or HELOC (Home Equity Line of Credit) often comes with lower interest rates than most credit cards, helping homeowners save money on interest while simplifying monthly payments.

Renovating Your Home

Planning a kitchen remodel or basement renovation? Home equity can provide the funds to upgrade your home, increasing its comfort and resale value. Many Edmonton homeowners are using home equity to modernize their homes rather than buying a new property in today’s competitive market.

Investing in Real Estate

Some homeowners are using their equity to purchase a rental property or second home. Edmonton’s real estate market continues to offer opportunities for investors, and leveraging home equity can help buyers make a strong down payment without draining savings.

Supporting Education Costs

With tuition costs rising, home equity can be used to fund post-secondary education for yourself or your children. Compared to student loans, home equity loans may offer better interest rates and more manageable repayment terms.

Preparing for Retirement

For homeowners nearing retirement, home equity can be a tool to supplement income. Some are using it to fund travel, medical expenses, or even transition to part-time work while maintaining financial security.

How to Access Your Home Equity

There are different ways to tap into your home’s equity, including:

• Home Equity Line of Credit (HELOC): Works like a credit card, allowing you to borrow as needed.
• Home Equity Loan: Provides a lump sum with a fixed repayment term and interest rate.
• Mortgage Refinance: Replaces your current mortgage with a new one, potentially at a better rate and with additional funds.

Is Using Home Equity Right for You?

Before borrowing against your home, it’s important to consider your long-term financial goals. While home equity can be a valuable tool, it should be used responsibly to avoid overextending finances.

Get Expert Advice on Your Options

If you’re thinking about using your home equity in 2025, Jason Scott and the team at Edmonton Mortgage Broker can help you find the best solution. Whether you’re looking to refinance, consolidate debt, or invest, we’ll guide you through the process and ensure you make a decision that fits your needs.

Contact us today to discuss your options.