Your home is more than where you live — it’s also a powerful financial asset. When life gets expensive, accessing your home’s value through an equity take out can give you the funds you need to get back on track. But not all solutions are created equal.
At HomeEquityLoans.ca, we focus on helping homeowners tap into their equity responsibly. Our goal is to get you approved quickly while protecting your long-term financial health. This guide explains everything you need to know about equity take outs, from eligibility and loan-to-value (LTV) rules to timelines, costs, and how we shop the market for you.
What Is an Equity Take Out?
An equity take out is when you borrow money against the value of your home while keeping ownership. Your available equity is the difference between your home’s market value and the total of all registered mortgages, HELOCs, and liens.
Quick Example:
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Market value: $650,000
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Current mortgage: $360,000
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Existing HELOC: $30,000
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Total debt: $390,000
At 80% of market value, the maximum secured borrowing allowed would be $520,000 — leaving up to $130,000 potentially accessible if you meet underwriting requirements.
Unlike a personal loan or unsecured line of credit, an equity take out is registered against your property, giving lenders security and allowing you to access more funds even with imperfect credit.
Why Canadians Use Equity Take Outs
Homeowners use equity take outs for many reasons:
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Debt Consolidation: Replace high-interest credit cards and payday loans with a single, manageable payment.
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Mortgage Arrears and Foreclosure Prevention: Catch up on missed payments and stop a power of sale.
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Tax Debt: Pay off CRA liens or property tax arrears to protect your title.
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Business or Education Funding: Access capital without selling investments or taking on expensive unsecured debt.
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Home Renovations: Improve your property and increase its future value.
Visit our Debt Consolidation and Property Tax Loans solution pages for more details.
How the Process Works
Our process is designed to be transparent and efficient:
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Start Your Application – Submit your details through our secure application form.
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Full Underwriting Review – We confirm property value, mortgage balances, and title health.
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Independent Appraisal & Title Search – Ensures accurate valuation and identifies liens or arrears.
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Market Shopping – As mortgage brokers, we compare offers from dozens of lenders (banks, credit unions, B-lenders, MICs, and private lenders).
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Approval & Closing – Once you select your solution, legal work is completed and funds are advanced — often in days for urgent cases.
Eligibility and 80% LTV Policy
HomeEquityLoans.ca will not arrange loans above 80% of a property’s value. This policy protects homeowners from over-leveraging and ensures payments remain sustainable.
Example Calculation:
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Property value: $500,000
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80% LTV cap: $400,000
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Existing mortgage: $280,000
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Maximum potential take out: $120,000
If you are over the 80% limit, we may recommend a smaller advance or a restructuring strategy.
Different Ways to Access Your Home’s Equity
Refinance
Refinancing replaces your current mortgage with a new, larger one. This can be ideal near the end of your term when penalties are low.
Second Mortgage
A second mortgage is added behind your first mortgage, allowing you to access equity without breaking your existing term.
HELOC or Home Equity Loan
A HELOC offers revolving credit with interest-only payments, while a home equity loan provides a fixed amount with a repayment schedule. We compare the two options in our HELOC vs Home Equity Loan guide.
Private Home Equity Loan
For urgent files or bank declines, we work with private lenders who focus mainly on equity position rather than income or credit.
Costs and Timelines
While exact costs depend on your file and lender selection, expect:
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Appraisal fee
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Legal and registration costs
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Title insurance
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Lender and broker fees
Whenever possible, these costs are added to the mortgage rather than paid upfront. The appraisal is usually the only out-of-pocket cost.
Funding Timelines:
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Standard approvals: 7–10 business days
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Urgent cases: Approval in 24 hours, funding within days
Calculating Your Available Equity
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Determine your home’s market value (recent sale comparables or appraisal).
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Multiply by 0.80 to find your maximum allowable secured debt.
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Subtract your current mortgage and other registered loans.
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The remaining figure is your estimated maximum advance.
Use our Home Equity Calculator to run the numbers before you apply.
Example Scenarios
Case Study 1: Consolidation for a Better Cash Flow
A Mississauga homeowner carrying $65,000 in credit card debt accessed equity to combine everything into one payment, saving over $1,100 per month.
Case Study 2: Emergency Arrears Rescue
A Hamilton family facing power of sale got same-day approval, paid arrears, and avoided losing their home.
Case Study 3: Clearing a CRA Lien
A business owner used equity to pay off $80,000 in back taxes and secure clear title, allowing refinancing to a bank mortgage within a year.
Responsible Borrowing and Exit Planning
We believe equity take outs should be part of a bigger financial plan. That’s why we:
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Limit borrowing to 80% LTV
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Structure solutions to improve cash flow and credit
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Create exit strategies to move clients back to lower-cost financing
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Offer prepaid options for those in transition to relieve payment stress
Why Choose a Broker Over a Single Lender
Going to one lender means you get one offer. Working with HomeEquityLoans.ca means you get access to a marketplace of solutions, professional advice, and a customized plan that looks beyond today and prepares you for the future.
Getting Started
Ready to explore your options? Here’s how to begin:
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Apply Online for a full underwriting review.
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Provide your mortgage statement and property tax information.
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Our team reviews your file and contacts you quickly — urgent cases get priority handling.
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Choose your preferred solution and close with your lawyer.
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Receive funds and follow your exit plan to get back to a bank-rate mortgage as soon as possible.
FAQs
How much can I take out of my home?
Up to 80% of your home’s value minus existing mortgages and liens.
Can I qualify if my credit is poor?
Yes. We focus on your equity and property first, then find a lender that matches your profile.
Do I need a job to apply?
Not always. We offer prepaid solutions that remove monthly payments for the term.
How quickly can I get approved?
Urgent applications can often be approved in 24 hours.
Can you pay out my CRA lien?
Yes, as long as there is enough equity and the lien can be discharged at closing.
Final Thoughts
An equity take out can give you the breathing room you need to reset your finances, cover urgent obligations, and plan for the future. At HomeEquityLoans.ca, we focus on fast approvals, safe lending practices, and long-term success — so you are not just borrowing money, you are building a pathway back to financial stability.
Start today: Apply Now, try our Home Equity Calculator, or Contact Us for expert advice.
