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Home Equity Myths Edmonton Homeowners Still Believe
October 6, 2025 | Posted by: Jeff Chin
Building home equity is one of the most powerful ways to grow wealth in Edmonton. Whether you live in Sherwood Park, St. Albert, Leduc, or Spruce Grove, the value of your home plays a major role in your overall financial picture. Yet, many Edmonton homeowners still hold onto outdated beliefs about home equity, refinancing, and how they can actually use the value built up in their property.
In this article, we’ll clear up the most common myths Edmonton homeowners believe about home equity and show you how to use it wisely without putting your home at risk.
Myth 1: Home Equity Only Matters When You Sell
Many homeowners in Edmonton think their home equity only becomes useful once they sell their property. This is not true.
Home equity represents the difference between your home’s market value and what you owe on your mortgage. You can access that equity without selling your home through financial products such as a Home Equity Line of Credit (HELOC), refinancing, or even a reverse mortgage if you are over 55.
These options can give you access to cash for renovations, debt consolidation, or retirement income while you continue living in your home. In fact, many retirees in the Edmonton area are already using their home’s value to fund their lifestyle and stay in the homes they love. You can read more about that in How Edmonton Retirees Are Using Reverse Mortgages to Stay in Their Homes Longer.
Myth 2: You Lose Ownership if You Borrow Against Your Home
A common misunderstanding among homeowners in St. Albert and Leduc is that borrowing against your home means the bank owns it. The truth is you continue to own your home as long as you keep your mortgage or loan payments up to date.
When you take out a HELOC or refinance your mortgage, you are simply leveraging your equity as collateral. The property remains in your name, and you retain full control over it.
Myth 3: Accessing Home Equity is Complicated and Time-Consuming
Many Edmonton and Sherwood Park residents assume that tapping into home equity involves complex paperwork or long approval timelines. While there are requirements, working with an experienced mortgage broker can make the process straightforward and stress-free.
A broker like Steven Boodoo has access to multiple lenders and can help you find the best rates and terms for your specific situation. Whether you want to refinance, open a HELOC, or explore other home equity options, a professional can guide you through every step.
Myth 4: Using Home Equity is Always Risky
Using home equity is not automatically a bad idea. The key lies in using it strategically. For instance, Edmonton homeowners often use their equity to:
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Consolidate high-interest debt into one manageable payment
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Fund home renovations that increase property value
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Invest in another property or business
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Support children or grandchildren entering the housing market
As long as your borrowing is planned and manageable, using home equity can strengthen your financial position rather than weaken it.
Myth 5: You Can Only Access Home Equity if You’re Mortgage-Free
This is one of the biggest myths still circulating among homeowners in Beaumont and Spruce Grove. You do not need to have your mortgage completely paid off to access home equity.
Even with an existing mortgage, you can refinance up to 80 percent of your home’s appraised value in Canada. That means homeowners with strong equity can unlock funds while still maintaining their primary mortgage. This flexibility allows you to make your equity work for you long before you retire.
Myth 6: Reverse Mortgages are a Last Resort
Reverse mortgages have come a long way and are no longer just for homeowners in financial distress. In Edmonton, many retirees use them as a smart way to supplement their income, cover unexpected expenses, or fund home improvements without monthly payments.
A reverse mortgage allows you to access up to 55 percent of your home’s value while continuing to live in it. The loan is only repaid when you sell or move out. For seniors in Edmonton, Sherwood Park, and St. Albert, this can be a practical way to enjoy their retirement years comfortably while keeping their independence.
The Bottom Line
Home equity is one of the most valuable assets Edmonton homeowners possess. The key is understanding how to use it properly. By clearing up these common myths, you can make informed decisions about refinancing, HELOCs, or reverse mortgages that fit your financial goals.
If you’re an Edmonton homeowner ready to explore your home equity options or have questions about the best strategy for your situation, reach out to Steven Boodoo today. Steven has helped many homeowners across Edmonton, St. Albert, Sherwood Park, and surrounding areas access the value in their homes safely and effectively.