HELOC & Home Equity Options in Ontario
Compare a HELOC, home equity loan or second mortgage with a licensed mortgage broker. We review your equity, lender requirements and total costs to help you choose an option that fits your repayment plan.
Sample Scenario
You could access
$240,000
Three ways to access your equity - which one fits your plan?
HELOC, home equity loan, or second mortgage. Each one solves a different problem. Below is how they compare, when each makes sense, and what most borrowers use them for.
Best For
HELOC
For flexible, ongoing access
- Rate
- Variable (Prime + margin)
- Payment
- Interest-only while borrowing
- Max LTV
- 65% standalone / 80% combined
- Credit
- 600-680+
A revolving credit line secured against your home. Borrow, repay, borrow again - you only pay interest on what you draw.
Common Uses
Best For
Home Equity Loan
One-time, known expense
- Rate
- Fixed or variable
- Payment
- Principal + interest
- Max LTV
- Up to 80%
- Credit
- Moderate
A lump-sum advance at a fixed rate. You know your payment, your term, your total cost from day one.
Common Uses
Best For
Second Mortgage
Equity access without breaking your first mortgage
- Rate
- Fixed (typically)
- Payment
- Principal + interest
- Max LTV
- Up to 80% combined
- Credit
- Lower - equity-based
A separate loan in second position behind your existing mortgage. Preserves your low first-mortgage rate.
Common Uses
Why a standalone HELOC caps at 65% - and how to reach 80%
Under OSFI rules, a HELOC on its own can only reach 65% of your home's value. To access more, you need a bundled setup (HELOC combined with a mortgage at the same lender), or a second mortgage registered separately in 2nd position.
In practice: if your bank offers 80% combined, they're bundling. If you want to stay with your existing mortgage lender, a second mortgage is often the simpler option.
Standalone HELOC
65%
OSFI cap, 1st position
HELOC + Mortgage (bundled)
80%
Same lender, bundled setup
Second Mortgage
80%
B-lender or private, 2nd position
See your actual number, not a sample
Our Cash Out Estimator uses Ontario private-lending guidelines - no credit check, no signup, no fine print. Get a real answer in 30 seconds.
Start the EstimatorThe HELOC Visa Card - equity access, no mortgage break
What if your home equity worked like a credit card? Our lender network includes an equity-backed Visa - swipe it anywhere Visa is accepted, up to your approved limit. Fully revolving, no annual fee, no prepayment penalty. Ideal when a traditional HELOC feels too rigid.
Equity Access
HELOC Visa
Approved Limit
Up to $1,000,000
Borrow, repay, repeat
Equity-based approval
Only pay when you use it
Pay it off anytime
Ideal when you need
- Everyday equity access without applying every time
- To keep your existing low first-mortgage rate untouched
- Flexibility - some months $0, some months $20K
- Approval based on equity, not a strict credit score
Ready to see if the HELOC Visa is right for you?
Free consultation, no credit pull to start.
At a glance
- Credit limit
- $50K - $1,000,000
- Position
- 1st or 2nd
- Max LTV
- Up to 80% combined
- Property type
- Owner-occupied or rental
- Repayment
- Revolving
- Minimum payment
- $10 + interest
- Lender fee
- 2%
Note: When paired with a mortgage, the Visa portion cannot exceed 65% of your home's value; the remaining room to 80% is filled by the mortgage.
Rates starting at
By combined LTV and credit tier
| LTV | 680+ | 640-679 | 600-639 | <600 |
|---|---|---|---|---|
| 0-60% | 6.99% | 7.99% | 9.99% | 10.99% |
| 60-70% | 7.99% | 8.99% | 10.99% | 11.99% |
| 70-75% | 8.99% | 9.99% | 11.99% | 12.99% |
| 75-80% | 9.99% | 10.99% | 12.99% | 13.99% |
Rates shown as annual %. Starting rates - actual rate depends on full application. Subject to change.
Bank said no? These are the borrowers we help every week.
Self-employed, declined for income documentation
Banks want 2 years of steady tax return income. If yours fluctuates, is retained in a corporation, or you write off expenses, the front door closes. B-lenders in our network accept bank statement or stated income programs - same equity, different rules.
Typical fit: self-employed business owners, freelancers, tradespeople, and contract workers with 20%+ equity.
Bruised credit, healthy equity
A missed payment history, past consumer proposal, or discharged bankruptcy doesn't automatically disqualify you when you have 25-35%+ equity. Private lenders look at your equity first; credit affects your rate, not whether you get approved.
Typical fit: people rebuilding after divorce, people 12+ months past a consumer proposal, homeowners with recent credit hits but strong equity.
Debt consolidation - $50K+ in high-interest
Credit cards at 22%, personal loans at 15%, LOCs at 12% - rolling this into a HELOC or home equity loan at 5-8% is usually the biggest single monthly-payment reduction you can make. We model the savings before you commit.
Typical outcome: $500-$1,500/month reduction in required minimum payments for a $75K consolidation.
Need funds in days, not weeks
Property purchase deposit, business opportunity, unexpected expense, bridge between selling and buying. Private lenders in our network close in 3-5 business days - banks are 4-6 weeks. You pay slightly more for speed.
Typical fit: pre-construction closings, tax deadlines, time-sensitive purchases.
HELOC rates move with bank prime
HELOC rates are usually quoted as a lender's prime rate plus or minus a spread. Your spread depends on your equity, credit, income and the lender's policy.
Bank HELOC
Prime ± spread
Based on equity and credit
Home equity loan
Fixed or variable
Lender and term determine pricing
Alternative lender
Case-by-case
Income, credit and loan-to-value
Private lender
Short-term pricing
Equity-based, with fees
Your actual rate and fees are confirmed after the lender reviews your property, credit, income and loan-to-value. See live fixed-rate mortgages →
HELOC and equity questions, answered.
Can I get a HELOC with bad credit in Ontario?
A bank HELOC typically requires 600-680+ credit. If you have 25%+ equity, B-lenders and private lenders can provide equity-based alternatives with more flexible requirements. Some HELOC Visa products have no minimum credit score requirement.
What is a HELOC Visa card?
A HELOC Visa card is an alternative home equity line of credit delivered as a Visa credit card, secured against your home. It gives you revolving equity access without breaking your existing mortgage - use it anywhere Visa is accepted, up to your approved limit.
What is the maximum HELOC in Canada?
Standalone HELOCs are capped at 65% LTV under OSFI rules. Combined with a mortgage at the same lender through a bundled setup, the limit is 80% LTV. Second mortgages can also reach 80% combined.
Can I get a HELOC if I'm self-employed?
Yes, though banks require 2 years of steady tax return income. We work with B-lenders offering stated income and bank statement programs specifically for self-employed borrowers.
HELOC vs refinancing - which is better?
Refinancing replaces your mortgage at a higher balance, giving you a lump sum, but triggers prepayment penalties mid-term. A HELOC or second mortgage gives you equity access without breaking your existing mortgage - usually the cheaper path if you're not at renewal.
How long does HELOC approval take?
Bank approvals typically take 3-6 weeks. B-lenders are usually 1-2 weeks. Private lenders can close in 3-5 business days for urgent situations.
Is HELOC interest tax-deductible in Canada?
Only if funds are used for income-producing purposes - investing in securities or a rental property. Interest on personal-use funds (renovations, debt payoff) is not deductible. Speak with a tax professional for your specific situation.
Your equity is worth more than your bank told you.
Free consultation. No credit check to start. Ontario homeowners across the GTA - get a real answer in 24 hours.
✓Multiple lenders - banks, alternative lenders, and private options
✓Same-day pre-approval available
✓Private options close in 3-5 business days