It is a very common practice to take the equity your home. Equity builds up naturally with the housing market (market appreciation) and also with any quality renovations you have done in your home. People often refinance their mortgage in order to payoff debts, renovate, buy a new car, purchase an investment or vacation property. You are replacing your existing mortgage with a new one. A couple of things to consider, there is a cost to do this - it is an entirely new mortgage and you have to get the lawyers, appraisers, and mortgage brokers working together once again to get this done.

At the time of purchasing your home, have a discussion with your mortgage broker on how to take equity out at a later date; do you refinance or is there another product? Some institutions have products that benefit those who are putting 20% down at purchase. The institution will provide you with a mortgage and a new secured line of credit to access your equity once you start paying down the mortgage. Being in the right product is an important part of credit planning.