Home Equity Loans - Unlock Your Property's Value
Access $25,000 to $500,000+ by leveraging your home equity. Lowest rates from 5.99%. Perfect for renovations, investments, or debt consolidation.
Rates from 5.99%
Lower rates than unsecured loans
Up to 80% LTV
Borrow up to 80% of your equity
Large Amounts
$25K to $500K+
Tax Benefits
Interest may be tax deductible
Home equity loans allow Canadian homeowners to borrow money using the equity in their property as collateral. Equity is the difference between your home's current market value and what you still owe on your mortgage. For example, if your home is worth $600,000 and you owe $300,000, you have $300,000 in equity.
In Canada, you can typically borrow up to 80% of your home's value minus your outstanding mortgage. Using the example above, you could access up to $180,000 ($600,000 × 80% = $480,000 - $300,000 mortgage = $180,000 available). Home equity loans offer lower interest rates than unsecured loans because your property serves as security.
Types of Home Equity Products
Home Equity Loan (Term Loan)
Receive a lump sum with fixed monthly payments over 5-30 years. Best for one-time expenses like major renovations or debt consolidation.
Rates from 5.99% APR
Home Equity Line of Credit (HELOC)
Revolving credit line - draw funds as needed, pay interest only on what you use. Flexible for ongoing expenses or emergencies.
Rates from 6.45% (Prime + 0.5%)
Second Mortgage
Additional mortgage behind your first. Access equity even with existing mortgage. Higher rates but more flexible approval.
Rates from 8.99% APR
Common Uses for Home Equity Loans
Home Renovations
Kitchen remodels, bathroom upgrades, additions, basement finishing - increase your home's value while improving your space.
Debt Consolidation
Pay off high-interest credit cards and loans. Save thousands in interest by consolidating at lower home equity rates.
Investment Opportunities
Fund investment properties, start a business, or invest in income-generating assets using your home equity.
Education Expenses
Finance post-secondary education for yourself or your children with better rates than student loans.
How much home equity can I borrow in Canada?
In Canada, you can borrow up to 80% of your home's appraised value minus your outstanding mortgage balance. For example, on a $500,000 home with a $200,000 mortgage, you could access up to $200,000 ($500,000 × 80% = $400,000 - $200,000 = $200,000).
What are the tax implications of home equity loans in Canada?
Interest on home equity loans may be tax-deductible if the funds are used for investment purposes or to earn income (like rental properties or business investments). For personal use (renovations, vacations), interest is not tax-deductible. Consult a tax professional for your specific situation.
What's the difference between a home equity loan and a HELOC?
A home equity loan provides a lump sum with fixed payments, similar to a personal loan. A HELOC (Home Equity Line of Credit) works like a credit card - you have a credit limit and can draw funds as needed, paying interest only on what you use. HELOCs offer more flexibility; home equity loans offer payment certainty.
Home Value:
$600,000
Mortgage Owing:
- $300,000
Your Equity:
$300,000
You Could Borrow:
Up to $180,000
(80% of $600K minus mortgage)
Minimum:
$25,000
Maximum:
$500,000+
Interest Rates:
From 5.99% APR
Terms:
5 to 30 years
Max LTV:
80%
- Own your home
- Minimum 20% equity
- Credit score 600+
- Stable income verification
- Home appraisal required
Apply for Home Equity Loan
Unlock the value in your home. Get approved for large amounts at low rates.