Home Equity Loans

Ready to unlock the hidden value in your home?

Discover the financial freedom you deserve with home equity loans tailored for Canadian homeowners. A home equity loan is exactly what it sounds like—a loan that allows you to borrow against the equity you’ve built up in your home.

We understand that your home is more than just a place—it’s an investment, a sanctuary, and where life’s best moments happen. That’s why we focus on transforming your home’s potential into possibilities.

    Couple applying for home equity loan through mortgage broker

    Apply Online With HomeEquityLoans.ca

    Many homeowners in Canada aren’t aware that as they’ve made mortgage payments throughout the years that they’re building up equity in their homes. That equity doesn’t have to sit in your home, doing nothing. You can use it to make a large purchase or stabilize your finances.

    At HomeEquityLoans.ca, we work closely with homeowners to help them qualify for a home equity loan as quickly as possible. Contact our office in Ontario to learn more about home equity loans and if you qualify.

    What Is a Home Equity Loan?

    Simply put, a home equity loan allows you to borrow against the value of your home – the part you actually own. It’s a secured loan, which means lower payments and flexible requirements, making it an attractive option for many. The easy approval process further sweetens the deal, especially if you’re looking for a quick solution to your financial needs.

    A home equity loan provides homeowners the ability to leverage the money they need, when they need it and is one of the truest forms of asset-based lending. Credit and income do not play a major factor in the approval process.

    women financing home equity

    Why Should I Take Out a Home Equity Loan?

    Canadian homeowners typically take out a home equity loan to finance their debts or unexpected purchases. However, you can use the funds for a variety of things, including:

    How Does a Home Equity Loan Work?

    A home equity loan is sometimes called a second mortgage. Your home’s equity is the collateral for your loan. How much you can borrow depends upon how much equity you’ve built up in your home.

    Typically, a homeowner can borrow up to 85% of the total equity they have. If your not sure how much you may be able to borrow, you can use our handy home equity calculator to see what you may be eligible to borrow

    Once the amount of equity you have in your home has been determined (in most instances this involves an appraisal on your property) it’s our job to find you the best rate and terms you are eligible for and that’s exactly what we do!

    Home equity loan mortgage broker explaining second mortgage process to couple

    Benefits of a Home Equity Loan

    Fixed Interest

    Many home equity loans come with fixed interest rates, providing predictable monthly payments and helping with budgeting.

    Longer Repayment Terms

    Because you are using your home as collateral, most lenders are willing to offer extended amortizations and many offer interest only payments to help keep your payments low.

    Lower Interest Rates

    Home equity loans typically have lower interest rates compared to other types of loans, such as personal loans or credit cards.

    Easy Approval Process

    Home equity loans are approved using common-sense underwriting. Approvals are based on the equity in your home, not credit or income.

    Let’s Calculate Your Home Equity Loan Together

    Curious about how much you could qualify for? Our user-friendly tools and resources are designed to help you calculate your home equity loan effortlessly. And if you have questions along the way, our team of experts is just a phone call away, ready to provide you with personalized advice and support.

    Home Equity Loan FAQ

    What is the difference between a Home Equity Loan and a Second Mortgage?

    A home equity loan and a second mortgage are terms often used interchangeably, but they refer to different financial products. A home equity loan is a type of second mortgage that allows you to borrow a lump sum of money based on the equity you have in your home, with fixed interest rates and regular monthly payments. On the other hand, a second mortgage can also refer to a home equity line of credit (HELOC), which provides you with a revolving line of credit that you can draw from as needed, typically with variable interest rates and flexible repayment terms. Both options use your home as collateral but differ in their structure and repayment methods.

    Can you have a HELOC and a Home Equity Loan simultaneously?

    Yes, it is possible to have both a Home Equity Line of Credit (HELOC) and a home equity loan at the same time. These are two different types of loans that tap into your home’s equity, and they can be obtained concurrently as long as you have enough equity in your home to cover both loans. However, approval for both will depend on your financial situation, including your credit score, income, and the amount of equity you have available.

    How much can I borrow with a home equity loan?

    The amount you can borrow generally depends on your home’s value, the equity you have, and your creditworthiness. Lenders typically allow you to borrow up to 65% and in some cases even 80% of your home’s value minus any outstanding mortgages.

    Can I get a home equity loan if I still owe money on my mortgage?

    Yes, you can still get a home equity loan even if you have an outstanding mortgage, as long as you have sufficient equity and meet the lender’s requirements.

    What can I use a home equity loan for?

    You can use it for a variety of purposes, such as home improvements, debt consolidation, preventing foreclosure, education expenses, or major purchases. The flexibility to use the funds as you see fit is one of the key benefits.

    Can I qualify for a home equity loan if I have bad credit?

    Yes, you can qualify for a home equity loan with bad credit. Lenders may be more lenient because the loan is secured by your home’s equity, reducing their risk. However, the terms may not be as favorable as those offered to borrowers with good credit.

    How long does it take to get approved for a home equity loan?

    The approval process can vary, but it typically takes 2-4 weeks from application to funding. The timeline depends on factors like appraisal, documentation, and lender procedures.