Many Canadians who have owned a home for 10+ years have seen its value rise while chipping away at their mortgage. The result is that many Canadians who may be cash poor are, in fact, equity rich.
One common misconception that people often make is that because they don’t have cash to invest in real estate (especially after recent changes in Canada upping the minimum down payment for a rental to 20%), they won’t be able to purchase property. (Read more on that here). However, if you own a home and have reasonable equity in it you may be surprised to learn that you CAN purchase real estate. You just simply need to utilize the power of leverage better.
So how do you do that?