How to Use Your Home Equity Without Selling

Most GTA homeowners hold more wealth in their property than in every other asset combined. Accessing part of it without moving is common, and the options differ enormously in cost and flexibility.

First, know your actual equity

Equity is current market value minus what you owe. Lenders will generally lend up to 80% of the appraised value in total, across all secured debt. So a home worth $1,200,000 with a $500,000 mortgage supports up to roughly $460,000 in additional secured borrowing — subject to your income qualifying for it.

Home equity line of credit (HELOC)

Revolving credit secured against the home, usually at prime plus a small spread. Interest-only payments on what you draw, and you can repay and redraw. Best for flexibility: renovations, a bridge, an emergency reserve. Rates are variable, so payments move with the Bank of Canada.

Refinancing the mortgage

Replace the existing mortgage with a larger one and take the difference in cash. Usually the lowest rate of any option, but it means requalifying under the stress test, potentially breaking your current mortgage and paying a penalty, plus legal and appraisal costs. Best when you need a large lump sum and your existing mortgage is near renewal.

Second mortgage or private lending

Sits behind the first mortgage, at meaningfully higher rates plus lender and broker fees. It exists for borrowers who can't qualify conventionally or need speed. Useful as a short-term bridge; expensive as a long-term plan.

Reverse mortgage

Available from age 55, with no monthly payments and no income qualification, at higher rates with compounding interest. The right tool for a specific situation, not a general-purpose one.

Before you talk to any lender

• Get an accurate market value — every option is sized off it.
• Know that lenders will order their own appraisal, which is often conservative.
• Compare total cost, not just the rate: setup fees, penalties and legal costs can swamp a small rate difference.
• Borrowing against a home converts equity into debt secured by where you live. Make sure the use of funds justifies that.