Equity
GeneralThe portion of an asset you actually own. For a home, equity is the market value minus the remaining mortgage. Equity grows as you pay down the loan or if the property value rises.
Related terms
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Asset
Anything you own that has financial value. Assets include cash in the bank, a vehicle, investments, or property. Your total assets minus your total debts equals your net worth.
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Mortgage
A loan specifically for buying property, where the property itself serves as collateral. In Canada, mortgages typically have 5-year terms within a longer 25-year amortization. On-reserve, Ministerial Loan Guarantees may be required.
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Net worth
The total value of everything you own minus everything you owe. It can be negative, and that is normal early in life. Tracking net worth over time is one of the clearest measures of financial progress.