
If you’re lucky enough to be a homeowner during a housing crisis, you’re in a good situation. Thankfully, it might be better than you even realize.
Not only can you claim to own the roof over your head and take comfort from knowing that you can sell it down the road to create a nest egg, but you can also draw on the equity you’ve invested to date to help you in the present day.
Let’s take a further look at the financial assets homeowners live inside.
HELOCs
A HELOC stands for a home equity line of credit. If you aren’t sure how much money you’ll need exactly, a HELOC is an excellent way to leverage your home’s equity to access an open-ended amount at a constant and competitive rate.
HELOCs can be approved quickly, making them perfect for things like emergency home repairs or even renovation. Legally, borrowers can use the money from the HELOC however they please, but experts recommend using them prudently for things that increase their collateral’s value rather than on personal indulgences.
A HELOC put towards home repairs raises the home’s value, offsetting the borrowing costs. In contrast, if you use a HELOC to pay for something like a vehicle or a vacation, you’ll have to absorb the borrowing costs or possibly even more.

Home Equity Loan
A home equity loan is just like a HELOC, except instead of an open-ended line of credit to access, borrowers receive one lump sum. Similarly, a home equity loan gets approved quickly because a property is the most reliable collateral.
Some people use home equity loans to consolidate their monthly debts and pay one lower number instead of several unwieldy ones. A great mortgage broker can help you access up to 85% of the equity in your home, so you can get relief when you need it.
Second Mortgages
Finally, it’s becoming more common to refinance your mortgage for a second home that gets you passive income or some other type of investment. With landlords increasingly using Airbnb during a housing crisis to generate side cash, you may need to leverage the equity in your first home to help you pay for a second, third, or more.
Other people use a second mortgage to consolidate outstanding loans and strengthen their personal financial foundations. Such an approach can save you considerable money and streamline the process, so it’s easier to manage.
Sometimes, practical obligations to manage several debts can be as burdensome as paying them, as debts that manage to slip between the cracks only grow. Speak to your mortgage broker about whether a second mortgage is the right path for you. If it is, they’ll help you navigate and optimize your options.
A home is something everybody needs. They say home is where the heart is, but homeowners can also take heart after leveraging their home’s equity they’ve built up over the years to enjoy a financial boost or get help stabilizing their personal finances.