How much equity can I borrow in Canada?
The amount of equity you can borrow is generally limited by the loan-to-value (LTV) ratio, which is the percentage of your home's appraised value that you can borrow against. Banks and financial companies commonly allow borrowers to access up to 80% of the appraised value of their home through home equity loans.
How do I apply for a home equity loan?
To get a home equity loan in Canada, you can follow these general steps:
- Discover whether you are eligible
- Check your credit score and fix the mistakes
- Research the market
- Gather the necessary documents
- Apply for the loan online or at the nearest branch
- Wait for your property appraisal
- Sign the loan agreement
How fast can I get a home equity loan?
The speed at which you can get a home equity loan in Canada depends on several factors, including your lender, the completeness of your application, and your financial situation. Generally, the process can take anywhere from a few days to a few weeks.
Home loan calculations for 20 years (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 400,000 | 4.60% | 185,533 |
| 400,000 | 4.60% | 185,533 |
| 400,000 | 4.60% | 185,533 |
| 500,000 | 5.10% | 257,125 |
| 500,000 | 5.10% | 257,125 |
| 500,000 | 5.10% | 257,125 |
| 600,000 | 5.60% | 338,800 |
| 600,000 | 5.60% | 338,800 |
| 600,000 | 5.60% | 338,800 |
| 700,000 | 6.10% | 430,558 |
| 700,000 | 6.10% | 430,558 |
| 700,000 | 6.10% | 430,558 |
How can I use a home equity loan?
- for debt consolidation
- have a more enjoyable retirement
- holiday
- medical or dental
- pay for education
- renovate your home
repair your car - wedding
Getting a home equity loan with bad credit in Canada can be challenging, but it’s not impossible. With bad credit, you might face higher interest rates compared to those with good credit. Lenders view higher credit risk as a reason to charge more for the loan. The amount you can borrow may be reduced if your credit is poor, as lenders may be cautious about lending a significant amount.
Some lenders specialize in providing loans to individuals with poor credit. They may have more flexible criteria, but be prepared for higher interest rates and fees. Local credit unions might offer more personalized service and be more willing to work with borrowers who have less-than-perfect credit. They may also offer more favorable terms compared to traditional banks.
If you have substantial equity in your home, you may be able to secure a loan with more lenient credit requirements, as the home equity acts as collateral. Consider alternative financing options, such as private lenders or peer-to-peer lending platforms, which may have different criteria for approval.
If possible, work on improving your credit score before applying. Pay down outstanding debts, correct any errors on your credit report, and ensure timely payments.
See the similar FAQ about Canadian banks:
- Citizens Bank student loans
- Coast Capital calculators
- Financial calculators from B2B bank
- How do I apply for a CIBC personal loan?
Details of companies offering the financial services:
Clover Mortgage
Head office’s address: 7 City Centre Dr Suite 150, Mississauga, ON L5B 1M5
Contact center: 1-416-674-6222
Web-site: https://clovermortgage.ca/
Mortgage Commitment Powered By Centum Financial Services FSRA
Web-site: https://mortgagecommitment.ca/
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
BHM Financial Group
Head office’s address: 1090 Avenue Pratt 1090 Avenue Pratt, Outremont, Montreal, QC
Contact center: 877-787-1682
Web-site: https://www.bhmfinancial.com
Canada West Mortgage
Head office’s address: 103-535 10 Ave SW Calgary, AB, T2R 0A8
Phone: 403 907 0845
Web-site: https://canadawestmortgage.ca/
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
Jeff Di Lorenzo
Head office’s address: 122 Lower Bench Rd, Penticton, BC V2A 1A8
Contact center: 1-877-744-3436
Phone: 778-839-3963
Web-site: https://yourequity.ca/
Lendtoday
Head office’s address: 179 King St E, Oshawa, ON L1H 1C2
Phone: 1-855-242-7732
Web-site: https://www.lendtoday.ca/
Turnedaway
Head office’s address: Unit 1 - 179 King St E Oshawa, Ontario
Phone: 855-668-3074
Web-site: https://www.turnedaway.ca/