Home equity loan lenders in Canada
Home equity lenders let you borrow against the value of your home beyond what you owe on it. Banks, credit unions and monolines offer home equity lines of credit and refinances on prime terms; alternative and private lenders offer equity-based loans where income or credit rule the prime options out.
The home equity lenders listed here describe their own products. The right one depends less on the lender than on what you need the money for, how long you need it, and whether your current mortgage can be touched without a penalty.
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Are you a lender? List here freeHELOC lenders and refinance lenders
A HELOC is a revolving limit secured on your home, drawn as needed with interest charged only on what you use. A refinance replaces your mortgage with a larger one and pays out the difference. Both are offered by prime lenders, capped at a share of the home’s appraised value, and both require you to qualify on income and credit.
If your mortgage is mid-term, a refinance means breaking it and paying the prepayment penalty. A HELOC or a second mortgage behind the first avoids that, which is often why borrowers look beyond their current lender.
Equity-based mortgage lenders
Alternative lenders, MICs and private lenders will lend primarily on equity, where income is hard to document or credit has been damaged. They lend at a lower share of the property’s value, for shorter terms, and at a higher cost that includes lender and brokerage fees disclosed in writing before you sign.
Used well, an equity loan buys time, to sell, to refinance at renewal, or to let a credit event age. Used without an exit, it is an expensive way to postpone the same problem.
Common questions
Which lenders offer home equity loans in Canada?
Banks, credit unions and monolines offer HELOCs and refinances to borrowers who qualify on income and credit. Alternative lenders, MICs and private lenders offer equity-based loans where the prime options are not available, at a higher cost.
Can I get a HELOC from a different lender than my mortgage?
Yes, as a second-position HELOC, though fewer lenders offer it and the rate is higher. The alternative is moving both to one lender, which usually prices better but may mean breaking your current mortgage.
Can I borrow against my home with bad credit?
Often, through an alternative or private lender, lending mainly on the equity in the property. It costs more and the term is short, so have a clear plan for repaying or refinancing it.
How much equity can I borrow?
Lenders cap total borrowing at a share of the appraised value, and the cap differs between a HELOC, a refinance, and an equity loan from an alternative or private lender. Your available room is that cap less what you already owe.