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Learn How to Apply for a Home Equity Line of Credit in Canada

Qualify for a Home Equity Line of Credit and Get Funding Fast With HomeEquityLoans.ca in Canada. 

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Tap Into Your Home's Equity for Upcoming Purchases

A HELOC is a great way to access funds at a lower interest than credit cards or personal loans. We've helped countless Canadian homeowners achieve financial freedom and improve their homes with quick funding. Apply online for a HELOC today with HomeEquityLoans.ca in Ontario.

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What Is a Home Equity Line of Credit?

A HELOC is a secured form of credit. Your home is used as collateral to guarantee that you'll pay back the funds you borrow.

HELOCs are revolving credit. You don't get a single lump sum upfront that you make payments on, like a home equity loan. You draw the amount of money you need and make payments on the amount you've borrowed. 

You can borrow up to 65% and in many cases as much as 80% of your home's market value or purchase price with a HELOC in Ontario.

What's Home Equity?

Home equity is the difference between what you still owe on your home and what its value is. For example, say your home is worth $500,000, and the balance on your mortgage is $200,000. Your home equity is $300,000.

What Can You Use a HELOC for?

You can use the funds from your HELOC for any type of purchase or investment you'd like. Some examples of how you can use your funding include:

  • Debt consolidation
  • Home renovation and remodels
  • Medical expenses
  • Education funds

How you use your funds is completely up to you. The best part is, you can access your cash at any time with low payments .

What Are the Advantages of a HELOC in Ontario?

In addition to only making payments on what you've borrowed, a HELOC provides homeowners with numerous benefits.

Tax-Deductible Interest

Tax-Deductible Interest

If you use your HELOC funding for home improvements, you can potentially deduct the interest you’ve paid on your taxes.
Qualify for Low-Interest Rates

Qualify for Low-Interest Rates

In general, HELOCs have lower interest rates than personal loans and credit cards. They’re a great option for ongoing projects and debt consolidation.
Borrow the Funds You Need

Borrow the Funds You Need

With a home equity loan, you get a lump sum of money upfront that you have to make payments on. A HELOC, just like a credit card, allows you to only borrow what you need but without the high-interest rates.

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What's the Difference Between Refinancing and a HELOC?

A cash-out refinance is another way to tap into your home’s value to access funds. Refinancing is different than a HELOC because it replaces your current mortgage with a new, larger one. The difference between your old loan amount and the new one gets “cashed out” to you.

A cash out refinance can be a great tool but often it isn't as cost effective as a HELOC because there are often significant penalties to break your mortgage.

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How Do You Qualify for a HELOC?

You only have to go through the approval process for a HELOC once. Once you’ve been approved, you can access your fund at any time until you’ve hit the credit limit.
To qualify, you’ll need to meet the following requirements:

  • Minimum equity or down payment of 20%
  • Minimum equity or down payment of 35% if you want to use a standalone HELOC as a substitute for a traditional mortgage
  • Proof of stable and sufficient income (self-employed is ok)
  • Acceptable credit score (bruised credit is ok)
  • Acceptable debt-to-income ratio

If it seems overwhelming it's likely because you haven't made the call yet. Reach out to one of our HELOC advisors and let us walk you through the process. We are here to help!

What Are the Different Types of HELOCs?

There are two main types of HELOCs available to Canadian homeowners. One is a standalone product, and the other is combined with your mortgage.

Standalone HELOC

A standalone HELOC is a revolving credit product guaranteed by your home and not connected to your mortgage. You can also use a standalone HELOC as a substitute for a mortgage, using it to purchase a home. You won’t have to pay off the interest and principal on a fixed payment schedule.

Using a HELOC to purchase a home gives you more flexibility. You can decide how much principal you want to pay off at any time. Additionally, you can pay off the remaining balance without encountering a prepayment penalty.

HELOC Combined With Mortgage

Another name for a HELOC combined with your mortgage payment is a re-advanceable mortgage. It combines a fixed-term mortgage with a revolving line of credit tied to your home equity.

You can also finance part of the purchase of your home with a HELOC and the remaining with a traditional mortgage. Your lender will decide how to use these two different forms of payments.

Frequently Asked Questions

Deciding to apply for HELOC can be an intimidating process, but it doesn't have to be. Below are some of the most commonly asked questions we get regarding HELOCs.  

A secured loan means you put up an asset, like your house, as collateral. HELOCs and home equity loans are secured loans. Unsecured loans are any type of loan that is backed up with collateral, like credit cards or personal loans. With a secured loan, you can take out a larger sum of money since you're using your house as collateral. You can also get a HELOC at a lower interest rate than an unsecured loan because it's secured by your home.
Because HELOCs are secured by your home, there are many lenders who will entertain applicants with bruised credit. Working with a broker who specializes in HELOC's for bad credit will dramatically improve your chances of an approval. In the event that you are not eligible for a HELOC, a home equity loans is also a viable option

If you have plans to apply for a HELOC in the coming months or years, there are ways to build additional equity into your home beforehand. Some of these ways include:

  • Putting down a larger down payment
  • Making additional mortgage payments
  • Making home improvements or renovations
  • Natural property value increase
You can use a home equity line of credit calculator to determine how much funding you'll qualify for with a HELOC.

Home equity line of credit rates in Canada vary depending upon your financial situation and credit score. As you go through the application process with HomeEquityLoans.ca, we'll speak to you about what rates you qualify for. The one thing you can count on is that we will always work to get you the best rate you qualify for!

With a HELOC, you only pay interest on the amount of money you've withdrawn. You don't have to pay interest on the entire amount you've been approved for.

How Does the Application Process Work?

Applying for a HELOC at HomeEquityLoans.ca is easy and straightforward.

Apply Online
You can use our online application form to start your HELOC application. You can also reach out to one of our HELOC advisors for help with the application process.
We Review Your Information
We strive to get our clients answers as quickly as possible, even approving some loans in as little as 24-hours.
Receive Funding
We work tirelessly to ensure our clients get access to the funds they need as quickly as possible. By utilizing technology and our industry relationships, we are able to get funds to our clients much faster than other brokerages.

Why should you choose the team at HomeEquityLoans.ca?

At HomeEquityLoans.ca, we're committed to doing more than helping our Canadian customers access funding to improve their lives. We help our clients stay better informed so they can make financial choices that have a positive impact on their lives.

We understand that the application process for a HELOC in Ontario can be overwhelming and intimidating. We work closely with our clients, so they understand the process and what each step means.

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Read Some of Our Client Success Stories

Great experience working with them. Gave me so much hope from the moment I applied and they came through. Honest and professional.

Deanna S

Simply amazing!

Thanks for helping with our mortgage. Your professionalism and customer service was amazing. We are glad we chose your company to help.

Danielle Martin

Simply amazing!

This was done fast! Thanks to your company I was able to clear up some large bills and get great financing on my home.

Roman Finney

Simply amazing!

Fantastic to work with and very professional. We were faced with a time crunch and needed help when our bank did not approve us. They were able to get us back on track.

Tori Magnate l

Simply amazing!

Apply Online for a HELOC Today

Use our online application form to apply for a HELOC in Canada today. We're proud to help Ontario homeowners achieve their financial goals.
Apply Now
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