How much can I borrow with a home equity loan?

Up to 80% of your home's appraised value minus your current mortgage balance. For example, if your home is worth $500,000 and your mortgage is $300,000, you could potentially access up to $100,000.

What's the difference between a home equity loan and a HELOC?

A home equity loan gives you a lump sum with fixed payments. A HELOC is a revolving credit line you draw from as needed, with variable rates.

Can I get a home equity loan with bad credit?

Yes — because the loan is secured by your home, lenders are more flexible on credit requirements. Private lenders specialize in this space, though rates will be higher.

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

Typically 2-4 weeks through traditional lenders (appraisal required). Some private lenders can fund within 5-7 business days.

Home Equity Loans Canada 2026 | HELOC vs Loan Comparison

Estimate Your Home Equity Options

See what your home equity can unlock. 2 minutes, no obligation.

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If you own your home, a home equity loan or HELOC gives you access to the lowest rates and highest loan amounts available in Canada. By using your home as collateral, you reduce lender risk — which translates directly into better terms, lower rates, and higher approval odds even with imperfect credit.

How It Works

1

Enter your property details

Estimated home value and mortgage balance — we calculate your available equity.

2

Complete your profile

Credit range, income, and what you need the funds for. Under 2 minutes.

3

See your equity estimate

Available equity, estimated rate, and loan vs. HELOC comparison.

4

Connect with equity lenders

Apply to lenders who specialize in home equity — from banks to private lenders.

What Determines Your Home Equity Loan Terms

Available equity (home value minus mortgage balance) determines your maximum loan amount

Most lenders allow borrowing up to 80% of your home's value minus your mortgage balance

Credit score still matters but is less critical when the loan is secured by your home

Income must demonstrate ability to handle the additional payment

Property type and location can affect available lenders

Estimated Rate Bands

Credit Tier	Estimated Rate Range	Approval Likelihood
Excellent (750+)	5.99% – 8.99%	Very High
Good (700–749)	6.99% – 10.99%	Very High
Fair (650–699)	8.99% – 14.99%	High
Below Average (600–649)	10.99% – 18.99%	Moderate-High
Poor (Below 600)	14.99% – 24.99%	Moderate

* Rates are estimates based on typical lender criteria and respect Canada's federal Criminal Code interest cap of 35% APR (in force since January 1, 2025). Your actual rate may vary. These are not offers.

Home Equity Borrowing Options Compared

Lump-sum loan vs. revolving HELOC vs. refinance — pick the structure that matches your goal.

Lender Category	Rate Range	Max Amount	Funding Speed	Credit Score
HELOC (Big-Six readvanceable)	Prime + 0.5% – Prime + 1.5%	Up to 65% LTV (HELOC alone)	2–4 weeks	680+, GDS/TDS limits apply
Home Equity Loan (fixed lump sum)	5.99% – 8.99%	Up to 80% combined LTV	2–3 weeks	650+ typical
Mortgage Refinance / Cash-Out	4.49% – 6.49%	Up to 80% LTV	30–45 days	680+, must pass stress test
Private 2nd Mortgage (MICs)	8.99% – 12.99%	Up to 75–80% LTV	5–14 days	Equity-based, 500+ accepted

Maximizing the Value of Your Home Equity

Home equity loans offer the lowest rates — if you're a homeowner, this should be your first consideration for any large borrowing need.

A HELOC provides flexible access to funds, while a home equity loan gives a lump sum with fixed payments. Choose based on whether you need all funds at once.

Use home equity for debt consolidation to potentially save thousands in interest costs — replacing 20%+ credit card debt with 6-10% secured lending.

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