Posted On Sep 19, 2025

There’s a picture on my desk of my daughter at her most recent dance competition. She’s mid-leap, filled with a grace and confidence that makes me incredibly proud. That photo represents years of dedication, sacrifice, and passion—both hers and ours.

What that picture doesn’t show is the spreadsheet I keep to track the costs: the tuition for her dance school, the travel, the costumes. I did the same for my son - who played at rep level in multiple sports in many years.  (My parents often ask me “why?” do we do this to ourselves - that’s another story for another day).  For parents with kids in high-level activities, whether it's dance, hockey, music, or gymnastics, this is a familiar story. We would do anything to support our children's dreams, but the financial strain is real and undeniable.

Too often, families resort to high-interest credit cards or personal loans to manage these costs, adding a layer of financial stress. But what if your biggest asset—your home—could provide a smarter, more affordable solution?

Using your home equity isn't about going into debt for a hobby; it’s about strategically using a low-cost financial tool to invest in your child's development without compromising your own financial future. Here are two common ways to do it.

 

Option 1: The Home Equity Line of Credit (HELOC) for Variable Costs

A HELOC is like a credit card secured against your home. You get approved for a certain limit, but you only pay interest on the money you actually use. It’s a revolving credit product, so as you pay it back, that credit becomes available again.

When it's perfect: A HELOC is ideal for managing the unpredictable costs associated with your child’s passion.

  • Last-minute travel: A team qualifies for nationals across the country.

  • Specialized equipment: A new pair of custom skates or a specific instrument.

  • Summer intensive programs: Lumpy, one-time costs that don't fit into the monthly budget.

The interest rate is variable and typically much lower than a credit card or unsecured loan. It gives you incredible flexibility to access funds exactly when you need them.

 

Option 2: The Mortgage Refinance for Fixed, Major Costs

A mortgage refinance involves breaking your current mortgage and starting a new one, often for a larger amount to pull out some equity.

When it's perfect: A refinance makes sense when you have a large, predictable, lump-sum expense.

  • Annual tuition: Paying for a specialized arts high school or a full year of elite coaching upfront.

  • Consolidating existing debt: If you've already accumulated debt on credit cards to fund these activities, a refinance can roll all of that into your mortgage at a much lower interest rate, simplifying your payments and saving you a fortune in interest.

While there are costs associated with breaking your mortgage, doing a "top-up" refinance at your renewal time is often the most cost-effective way to access a large amount of equity for a planned expense.

The Responsible Approach

This isn’t a blank cheque. The key is to treat your home equity with respect. This strategy works best when you have a clear plan to pay the money back, whether it's by reallocating funds once a season ends or adjusting your budget.

Our children’s passions are a priceless part of their growth. As parents, our job is to support them. As a mortgage professional, my job is to help you find ways to do that in a way that is financially sustainable and stress-free. Let’s talk about how you can make your home’s equity work for your family's dreams.

Let's connect!

Ready to discuss your home ownership goals and a Better Mortgage by Dom?

 

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