Home Equity Loans in Canada
If you own your home, the equity you have built can be one of the most powerful financial tools available to you. A home equity loan lets you turn that value into funds you can use to consolidate high-interest debt, cover a large expense, or take back control of your monthly budget.
At LendToday, we help homeowners across Ontario access home equity loans, from the Greater Toronto Area and Durham Region to Ottawa, Hamilton, and London, even when the bank has said no. Our decisions are based on the equity in your home, not just your credit score.
What Is a Home Equity Loan?
Home equity loans let you borrow against the value you have already built in your home. Your equity is the difference between what your property is worth and what you still owe on your mortgage. As you pay down your mortgage and as your property value rises, that equity grows.
A home equity loan turns part of that value into funds you can use, while you keep living in your home. Many homeowners use it to consolidate high-interest debt, fund a renovation, cover an emergency, or handle a large one-time expense.
Because approval leans heavily on your equity rather than your credit score alone, a home equity loan is often possible even when a bank has already turned you down. Learn more about a bad credit mortgage and how equity-based approval works.
When a Home Equity Loan Makes Sense
A home equity loan is not right for everyone, but for many homeowners it is one of the most effective ways to access funds and regain control of their finances. It is often worth considering when:
- You have built up equity in your home you could put to work
- You are carrying high-interest credit card or loan balances month to month
- You need funds for a renovation, an emergency, or a large expense
- You want a single, predictable monthly payment instead of many
- You have been declined by your bank because of your credit or debt load
- You are self-employed or have income that is hard to document
Why Homeowners Choose LendToday
Experience that works for you. Our team brings more than 30 years of combined experience helping Canadians access financing when the bank has said no.
We work where banks won't. We base our decisions on your equity, so a bruised credit history, a high debt load, or income that is hard to document does not automatically rule you out.
Access to private and alternative lenders. Through our network, we connect you with lenders who base their decision on your equity, not just a credit score or debt-to-income ratio.
Guidance beyond the loan. We help you understand the numbers and, where useful, offer guidance to rebuild your credit over time so today's solution supports a stronger financial future.
An honest answer, fast. Apply online today and we will typically get back to you within 24 hours with a clear, no-obligation picture of your options.
How a Home Equity Loan Works
The idea is simple. You turn part of the value already sitting in your home into funds you can use, secured by your property. Here is the plain-language version of how it usually comes together.
A Simple Example
Say a homeowner has built solid equity in their property over the years, but is also carrying several high-interest credit card and loan balances. Between the minimum payments and the interest, keeping up feels like running in place, and much of each payment goes to interest rather than the balance.
By tapping into their home equity, they can pay off those high-interest balances and replace them with a single payment secured by their home, typically at a far lower rate than credit cards charge. The high-interest accounts are cleared, and there is one payment to manage instead of many.
This is a simplified illustration. The amount available to you, and your actual payment, depend on your property value, your current mortgage balance, your equity, and the terms you qualify for. A specialist can walk you through the exact numbers for your situation.
Estimate Your Available Equity
Want to see roughly how much equity you could access? Use our free Home Equity Calculator to get a quick estimate, then talk to a specialist for a precise figure based on your property and your goals.
Benefits of Home Equity Loans
Home equity loans can do more than cover a single expense. For many homeowners, tapping their home equity changes their entire monthly picture.
Lower Your Interest Costs
Rates on equity-based financing are typically far lower than credit card and unsecured loan rates. Moving high-interest debt to a loan secured by your home can significantly reduce the interest you pay over time.
Access a Larger Amount
Because the loan is secured by your home, you can often access a larger sum than an unsecured loan would allow, giving you room to consolidate debt or fund a major expense.
Free Up Monthly Cash Flow
Replacing several high-interest payments with one lower payment can leave more room in your budget each month for everyday expenses, savings, or simply breathing space.
Approved On Your Equity
Because approval leans on your home equity, a home equity loan is often possible even when a bruised credit history has closed other doors.
A Path to Rebuild Credit
Clearing high-interest balances and keeping up one manageable payment can support healthier credit over time as you make consistent, on-time payments.
Use the Funds Your Way
From debt consolidation to renovations, tax arrears, or an emergency, the funds you access can be put toward almost any meaningful financial goal.
What You Can Use a Home Equity Loan For
Debt consolidation is the most common reason homeowners tap their equity, but it is far from the only one. The funds you access can be put toward many goals. Choose any option to get started.
How Much Can You Borrow With a Home Equity Loan?
In Canada, you can typically access up to 80% of your home's value, with your first and second mortgage combined. That means the total of what you already owe plus any new equity loan generally cannot exceed 80% of what your property is worth. The remaining 20% stays as equity you keep in the home.
Here is the plain-language version. If your home is worth more than what you currently owe, the gap between the two is your equity. The more equity you have built, the more room there is to access funds through a home equity loan.
The exact amount available to you depends on your current mortgage balance, your property value, and the terms you qualify for. A specialist can confirm your numbers, and our Home Equity Calculator is a good place to start.
A quick example. Say a home is worth a certain amount and the owner still owes part of it on their mortgage. Accessing up to 80% of the home's value, first and second mortgage combined, could free up the difference to pay off high-interest debt or cover a major expense.
Every situation is different. The best way to know your exact numbers is a no-obligation review with a specialist.
Home Equity Loan vs HELOC
A home equity loan and a home equity line of credit (HELOC) both let you tap the value in your home, but they work differently. Here is a general comparison to help you see which fits your goals.
| Factor | Home Equity Loan | HELOC |
|---|---|---|
| How it works | A lump sum secured by your home equity | A revolving credit line secured by your equity |
| Best for | A specific, one-time need such as consolidating debt or a major expense | Ongoing or flexible access to funds over time |
| How you receive funds | All at once, up front | Draw what you need, when you need it |
| Payment structure | Set payments on the amount borrowed | Interest on what you draw, flexible repayment |
| Best credit range | Flexible, equity-driven | Stronger credit usually preferred |
| Learn more | You are here | HELOC |
Not sure which is right for you? A specialist can compare both against your situation. You may also want to explore a second mortgage or refinancing to consolidate debt.
Why Your Bank May Say No
Traditional banks follow rigid lending rules, and a strong homeowner can still be turned down for reasons that have little to do with whether they can afford the payment. Common reasons a bank says no include:
- Too much existing debt relative to income
- A low or bruised credit score
- Self-employed or hard-to-document income
- A history of missed or late payments
- A current or past consumer proposal or bankruptcy
- Mortgage arrears or falling behind on payments
Alternative and private lenders often look beyond these issues. Because they weigh your home equity heavily, a challenge that stops a bank cold is frequently workable through an equity-based solution. This is often the path forward for homeowners dealing with mortgage arrears, property tax arrears, or CRA tax debt. Learn more about a bad credit mortgage.
How to Get a Home Equity Loan With LendToday
Getting started is simple, and there is no obligation to proceed. Here is what the process looks like from your first step to a clear answer.
Fill out our short, secure application. It takes only a few minutes and there is no obligation.
We look at your home equity and your goals, not just your credit score, to understand what is possible.
Drawing on our network of lenders, we find the home equity solution that fits your situation.
Apply today and we will typically get back to you within 24 hours with a clear picture of what is possible.
Ready to Put Your Home Equity to Work?
Your home may hold more financial flexibility than you realize. At LendToday, we help homeowners access their equity, lower their payments, and lay out the options clearly, with no obligation to proceed.
Apply online today and we will typically get back to you within 24 hours.
Home Equity Loan FAQs
What is a home equity loan?
A home equity loan lets you borrow against the value you have built in your home. Your equity is the difference between what your property is worth and what you still owe on your mortgage. You receive funds you can use for almost any goal, while you continue living in your home.
How much can I borrow with a home equity loan in Canada?
In Canada, you can typically access up to 80% of your home's value, with your first and second mortgage combined. The exact amount available depends on your current mortgage balance, your property value, and the terms you qualify for.
How much equity do I need for a home equity loan?
You generally need enough equity that your existing mortgage, plus the new equity loan, stays within about 80% of your home's value. The more equity you have built beyond what you owe, the more room there is to access funds.
Can I get a home equity loan with bad credit?
Often, yes. Because the decision leans on your home equity rather than your credit score alone, a home equity loan is frequently possible even when a bank has declined you. Learn more about a bad credit mortgage.
What can I use a home equity loan for?
Homeowners commonly use a home equity loan to consolidate high-interest debt, fund home renovations, pay off CRA tax debt or property tax arrears, cover a divorce buyout, or handle emergency expenses. The funds can be put toward almost any meaningful financial goal.
What is the difference between a home equity loan and a HELOC?
A home equity loan gives you a lump sum up front with set payments, which suits a specific one-time need. A HELOC is a revolving credit line you can draw from as needed, which suits ongoing or flexible access to funds.
Will a home equity loan lower my monthly payments?
For many homeowners, yes. Moving high-interest balances to a loan secured by your home and combining several payments into one often reduces the total monthly amount. Your actual result depends on your balances, interest rates, and the terms you qualify for.
Can I get a home equity loan if the bank has declined me?
Often, yes. Banks follow rigid rules and may decline a strong homeowner over credit, debt load, or hard-to-document income. Alternative and private lenders weigh your equity more heavily, so a challenge that stops a bank is frequently workable through an equity-based solution.
Can I get a home equity loan if I am self-employed?
Yes. Self-employed and hard-to-document income does not automatically rule you out, because approval leans on your home equity. Learn more about self-employed mortgage options.
Can I get a home equity loan with a consumer proposal or past bankruptcy?
Often, yes. A past or current consumer proposal or bankruptcy does not automatically disqualify you, because approval is based mainly on your equity. Many homeowners use a home equity loan to pay out a proposal and consolidate remaining debt into one payment.
How fast can I get a home equity loan?
It varies by situation, but we typically respond within 24 hours of your application with a clear picture of your options. Equity-based solutions can often move quickly once your equity is confirmed and your documents are in order.
Do you only help homeowners in Ontario?
LendToday and its agents are licensed under an Ontario mortgage brokerage, serving homeowners across the province, from the Greater Toronto Area and Durham Region to Ottawa, Hamilton, and London. Contact us to find out what home equity options are available for your situation.