The difference between a property's current market value and the remaining mortgage balance. If your home is worth $500,000 and you owe $300,000, you have $200,000 in equity. Equity builds through mortgage payments, appreciation, and forced appreciation. See also LTV and Refinancing.
Related Articles
- 10 Common Home Repairs Every Property Owner Must Know
Handle the most common home repairs before they get costly. Water leaks, electrical, HVAC and plumbing fixes Canadian property owners face.
- 25-Year vs 30-Year Amortization: Which Saves More?
Compare 25-year and 30-year amortization side by side. Monthly payment differences, total interest costs, and which schedule works best for Canadian investors.
- 3 Home Selling Mistakes That Cost Canadians Thousands
Avoid the costliest home selling mistakes in Canada. FSBO pitfalls, pricing errors, and poor timing that leave thousands of dollars on the table.
- Fix Negative Cash Flow on Rentals: 3 Proven Methods
Turn cash-flow-negative rentals profitable with three proven strategies. Interest-only mortgages, amortization extensions, and refinancing options in Canada.
- 3 Ways Real Estate Builds Wealth in Canada
Understand the three profit centres of Canadian rental property: appreciation, monthly cash flow, and mortgage pay-down. Plus how to fix common problems.
- The 70% Rule for House Flipping in Canada
Calculate your maximum purchase price on any flip using the 70% rule. ARV formula, renovation budgeting, and real examples for Canadian house flippers.