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Equity Mortgages

Tapping into the equity in your home

Having purchased your home, it is important to note that you can take advantage of the equity in your property to finance another goal. What is considered equity in a property? Equity represents the market value of your property less the balance of outstanding loans (or encumbrances) held against the property.

This equity can be tapped into to fund renovations, consolidate debts , expand your investment portfolio (including other real estate), meet major medical and tertiary expenses by taking a second mortgage from First Citizens provided that your existing first mortgage and the proposed second mortgage loan do not exceed 75% of the market value of the property. Even where the first mortgage is at another financial institution, we at First Citizens can grant a second mortgage once the other financial institution gives consent.

You can utilize the equity in your home to fund other expenses such as: 

  • House Repairs/renovations
  • Debt consolidation
  • Tertiary educational expenses
  • Medical expenses


If you already own property, you can raise financing against this property to consolidate debts you may have at First Citizens or at other financial institutions thereby making your total monthly payments more affordable. Additionally if you have children desirous of pursuing university education, such costs can be funded by taking a mortgage over your home. If there is an existing mortgage, tertiary expenses can be funded via a second mortgage over your property. As a homeowner when you raise financing against your property to fund expenses such as consolidating debts, effecting repairs and meeting tertiary educational expenses what you are doing is tapping into or utilizing the equity in your property. A benefit of obtaining financing via a second mortgage as opposed to refinancing when a first mortgage already exists is that there are reduced legal costs to be paid by the client since you save legal costs and stamp duty should you have had to release the first mortgage already in place.

To illustrate:

If the present market value of your property is 1 million dollars and the present balance on the mortgage is $300,000 then the equity in the property can be calculated as follows:

Market Value - $1 million
Bank’s maximum lending value - 75% of $1 million = $750,000
First Mortgage balance - $300,000
Then equity in the property - $750,000 - $300,000 = $450,000

Equity via a second mortgage financing in the sum of $450,000 can be considered by the Bank subject to ability to service and credit requirements being satisfied. Remember at First Citizens we provide financing via second mortgages even if the first mortgage is not held at First Citizens.


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