Home Equity Loans & HELOCs · Toronto & GTA
Access your equity as you need it.
A home equity line of credit or term loan lets you borrow against your home at rates close to mortgage rates, without taking on a short-term second mortgage. Best suited to borrowers who can qualify with a bank or credit union.
How Home Equity Borrowing Works
A credit line, a lump sum, or both.
Banks and credit unions typically offer home equity borrowing in two forms, often set up together under one registration on your home. The lender looks at your credit and income as well as your equity.
HELOC
A revolving line of credit of up to 65% of your home value. Draw, repay and redraw, and pay interest only on what you use.
Home equity term loan
A lump sum with a set payment schedule, at a fixed or variable rate, for a known one-time cost.
Readvanceable setup
Some lenders combine your mortgage and a HELOC so available credit grows as you pay down the mortgage, up to 80% of value in total.
Who It May Suit
Is a home equity loan right for you?
May suit you if
- You have good credit, provable income and at least 20% equity in your home.
- Your costs will arrive over time, such as a staged renovation, tuition or business needs.
- You want a low-cost safety net you can draw on without reapplying.
- You are comfortable with a variable rate and have a plan to pay down what you borrow.
May not be the best fit if
- You would be tempted to use it for everyday spending without a repayment plan.
- Your credit, income or debt ratios do not meet bank qualification, including the stress test.
- You need one large amount and want a fixed payment over a long amortization.
- You plan to switch lenders soon, as some equity setups can be harder to move.
How Repayment Works
What paying it back looks like.
How you repay depends on which product you choose. A HELOC gives you control over when you pay down the balance, while a term loan follows a fixed schedule.
HELOC: interest-only minimum
The minimum payment is usually the interest on what you have drawn. You can pay down principal at any time without penalty.
HELOC: variable rate
Rates are typically prime plus a margin, so your payment changes when the prime rate moves.
Term loan: set payments
A term loan is repaid in regular principal and interest payments over an agreed period, so the balance shrinks on schedule.
Reusable credit
Whatever you repay on a HELOC becomes available to borrow again, as long as the account remains in good standing.
Costs & Risks
Know the full cost before you borrow.
We put every fee and trade-off in writing before you commit, so you can compare options on total cost rather than rate alone.
Costs to expect
Interest on what you use
HELOC rates are usually higher than first-mortgage rates, but lower than unsecured lines of credit or credit cards.
Appraisal
Most lenders require an appraisal to confirm your home value. Some cover this cost during promotions.
Legal and registration fees
Registering the line against your home involves legal or title work. Some lenders contribute toward these costs.
Annual or account fees
Some HELOCs carry an annual fee or fees for setting up sub-accounts.
Risks to weigh
Rising rates
Variable rates mean your payment increases when prime goes up, which can strain your budget.
Balance that never shrinks
Paying only the interest-only minimum means you could still owe the full amount years later.
Limits can change
Lenders can reduce or freeze a HELOC limit, or require repayment, under the account terms.
Harder to switch lenders
Collateral or readvanceable registrations can make it costlier to move to another lender at renewal.
When an Alternative May Be Preferable
Sometimes a different route costs less.
A home equity loan is one tool among several. These are the situations where we would usually look at another option first.
Estimate Your Equity
See how much equity may be available.
With a bank or credit union, total borrowing against your home is usually capped at 80% of its value, with the HELOC portion limited to 65%. Move the sliders to estimate your room.
Estimate only. A standalone HELOC is limited to 65% of your home value. Your actual limit depends on an appraisal, your credit, income and lender criteria.
Estimated available equity
$270,000
Ways to Access Your Equity
Three routes. One honest comparison.
The Process
From first call to funds in hand.
Free consultation
We review your home value, current mortgage, credit, income and what the funds are for.
Compare every route
Refinance, second mortgage or home equity line: we show the total cost of each side by side.
Appraisal & approval
We coordinate the appraisal, package your file and work toward an approval with a suitable lender.
Sign & fund
You sign with a lawyer and the funds are advanced. We stay involved through funding day.
Common Questions
Good questions. Honest answers.
Typically up to 80% of your home's appraised value, minus your existing mortgage. The revolving HELOC portion is capped at 65% of the home's value, but can be combined with an amortizing mortgage up to 80%.
A HELOC is revolving: you draw, repay and redraw, and pay interest only on what you use. A home equity term loan is a one-time lump sum with a set repayment schedule.
Not necessarily. Many HELOCs are set up by your main lender in first position alongside your mortgage. A second mortgage is a separate loan behind your existing one, usually from a different lender at a higher rate.
A refinance usually offers a lower rate on a large lump sum but replaces your mortgage and may trigger a penalty. A HELOC leaves your mortgage in place and gives you flexibility. We compare the total cost of each.
Yes. Bank and credit union HELOCs require you to qualify at the higher of the stress-test rate or your contract rate, in addition to meeting credit and income requirements.
Most home equity lines and loans with a bank or credit union close within two to four weeks, depending on the appraisal and legal work.
Take the First Step
Get a clear answer before you commit.
Tell us what you need the funds for. A licensed broker will compare a refinance, a second mortgage and a home equity line for your situation, with the costs in writing.
Free service, no obligation. Licensed mortgage brokerage, FSRA #13747. Serving Toronto, the GTA and Ontario.
See how much equity you can access
Takes about 60 seconds. A licensed broker follows up within one business day.
Home equity financing is subject to credit review, property appraisal, the federal stress test and lender approval. Rates, limits and fees vary by lender and may change without notice. FSRA Lic. 13747.