As the holiday season approaches, many families start feeling the financial pinch. Between rising grocery costs, gifts, travel, and winter expenses, it’s no surprise that credit card balances tend to climb in December. But if you’re a homeowner, your property may hold the key to easing that stress — through home equity.
💳 Why Holiday Debt Is a Problem
High-interest credit cards (often 19%–22%) make it hard to pay off balances once the new year begins. What starts as a few holiday purchases can snowball into thousands of dollars in long-term debt.
🏡 How Home Equity Helps
Equity is simply the difference between what your home is worth and what you still owe on your mortgage. For example:
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Home value: $700,000
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Mortgage balance: $400,000
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Equity: $300,000
Refinancing or using a Home Equity Line of Credit (HELOC) allows you to access a portion of that equity at mortgage-level interest rates — typically around 4–6% today (uninsured, as of publishing; subject to change).
That’s a fraction of what you’d pay on credit cards or personal loans.
📉 Real-Life Example
A Niagara family with $25,000 in credit card balances at 19.99% was paying nearly $500/month in interest alone. By refinancing their mortgage and consolidating that debt into their home loan, they lowered their overall payments by over $800/month, giving them breathing room for the holidays and beyond.
🎯 Why Act in the Fall?
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You’ll have funds ready before holiday spending peaks.
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It’s easier to manage payments going into 2026, rather than catching up in January.
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Rates are still relatively stable, but penalties could rise if you wait until the new year.
Final Thoughts
The holidays should be about enjoying time with family and creating memories — not worrying about credit card statements. Using your home equity wisely can give you the financial flexibility to enjoy the season and start the new year strong.
📲 Curious about how much equity you can access? Let’s run the numbers together.
Visit mortgage-wealth.ca — Your Home, Your Future, My Priority.