At Lower we believe that reclaiming the money you’ve already invested in your home should be easy. That’s why we approve most home equity loan applicants regardless of their credit. Equity in, equity out, it’s just that simple.
Lower is Canada’s premium broker offering solutions for every type of home equity financing, no matter the purpose.
We’ll check 40+ lenders and 10,000 products in the market.
Speak with your trusted Lower advisors anytime.
Lower advisors will do all the application admin.
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Buying a home for your family is so important. Ammar made us feel comfortable with at ease with this process. He took his time to understand our needs but was very quick with the process.
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I bought my first home a few years back and used @lowerdotca. It was a great experience so I called them when I was ready to purchase my second house. Ammar and his team go above and beyond.
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We had a great experience with Ammar and his team. He explained us all of our options without us feeling the pressure or rushed. I highly recommend.
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I was extremely nervous being a first time home buyer in Toronto. With prices skyrocketing I wasn't sure this was the right move but after speaking to Ammar, he made me feel confident.
Ammar went above and beyond our expectations, answering all of our questions and securing us an even better rate that we'd hoped for! The entire process was very smooth and we will be recommending his mortgage services.
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I was working with a broker before and it was a nightmare. Thank goodness I found Ammar. He was always quick to respond to help us. We will definitely be using Ammar when it’s time to renew our home.
I was anxious being a first-time home buyer in the Toronto market. Ammar was referred to me by a friend of the family and he definitely made the process much easier to work through!
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We really appreciated Damien’s patience and compassion through this entire process. We are very happy with our rate and how easy he made our experience.
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Ammar was amazing to work with from start to finish. Found us such an excellent rate. He went above and beyond for us.
@lowerdotca helped me with my purchase of my third business property. He found us the best rates. I would recommend Shawn if you need to speak to anyone.
My family member recommend @lowerdotca and to speak to Ammar. He doesn't disappoint. I was very satisfied with his service.
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My previous mortgage broker retired so I had to find a new one. When I contacted Lower. The whole team is amazing. I was impressed right off the bat. Very professional.
@lowerdotca was recommended to me by a fellow business owner who used their services to refinance their property. I found Ammar to be knowledgeable and efficient in helping us to reduce our rate and liquidate the capital we needed to expand our business.
So glad I found Damien and Lower. The last time I had to renew my mortgage was a headache. Damine is familar with the challenges of applying as a self-employed individual and got our re-financing done without any trouble.
Lower gave us confidence in our purchase. I won’t even hesitate calling because they are just that great! Very easy to understand and work with.
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I've worked with Lower many times. I highly recommend them to my clients who are in need. They work hard to get the best rates.
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I was referred to Damien because I wanted to purchase the building my business is in when my landlord decided to sell. We went over all of my options and I ended up not only managing to purchase the building but also get extra funds to
Very reliable team. They are straight forward which I liked. They are honest but they also work very hard to find the best rates for you.
I had the pleasure of speaking to Shawn about a few things. Including purchasing property for my business and we got approved very quick. I will be using his services for my business in the future.
I used @lowerdotca to help with the purchase of my second investment property. Damien made the process quick and straightforward, which I appreciated as I have a hectic schedule.
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After deducting the outstanding mortgage balance, this is the maximum amount you may borrow against the equity in your house. It is payable over an agreed loan term. Also, it comes at a fixed interest rate, which can be high or low, depending on your lender.
First, you meet your lender's requirements, which include having about 20% of the value of your property in equity. Then apply and pay up all agreed fees. Afterward, you'd receive your money and pay up both principal and interest monthly over an agreed loan term.
Getting this type of loan is quite simple. You can visit your local bank or check up on some online lenders like Lower. You'd need a good credit score rating, about 20% equity in the property, reliable payment history, and more.
Yes. This type of loan is tax deductible. However, the tax cut and job act of 2017 stopped the tax deduction on home equity loans that aren't used for building renovations or buying buildings. This is to continue till 2026.
You need up to 20% equity on your property to access this type of loan. However, it may be more or less depending on your lender. Also, this percentage determines the amount of loan you'd get.
A home equity loan is an excellent option for debt management. Having a debt burden is not a pleasant experience. You might want to renovate your property, start a small business, or pay your child’s college fees with no other loan option available.
A home equity loan is a type of loan where a borrower gets a certain amount of money while collateralizing the equity on their home.
This type of loan is attractive because of the predictability of the repayment schedule. This is because the interest rate is typically fixed. Also, loan lenders often provide a variety of monthly payment plan options.
However, getting a home equity loan can be difficult if you don’t have enough home equity. If you want this type of loan, it is crucial to understand what you need to qualify and how much equity you will need to borrow. This article will give you an overview of HELOC to help form a better understanding of the process.
Home equity is the difference between your home’s current market value and the amount you still owe on your mortgage. For example, if your home is worth $500,000 and you have $150,000 left on your mortgage, your home equity is $350,000. That means you have built up $350,000 in ownership value.
Home equity increases as you pay down your mortgage and/or as your home’s market value rises.
Home equity loans are widely used because they give homeowners access to a large lump sum of money at relatively lower interest rates compared to unsecured borrowing options. Since the loan is secured against the property, lenders are often more willing to offer favourable terms.
Common uses include:
Because the funds are delivered in a single lump sum, this type of loan is best suited for expenses where the total cost is known upfront.
Home equity represents the portion of your home that you truly “own.” It builds over time as you pay down your mortgage and as your property value increases.
For example:
If your home is worth $500,000 and you still owe $150,000 on your mortgage, your equity is $350,000.
This equity is not cash in your pocket, but it acts as a financial resource that lenders can use to determine how much they are willing to lend you.
Many homeowners are surprised to learn that equity is not static. It changes over time based on:
Lenders do not simply lend based on your equity alone. Instead, they use a combination of financial checks and risk assessments.
They typically evaluate:
Even if you have significant equity, your borrowing ability may still be limited if your income or credit profile does not meet lender requirements.
Loan-to-value (LTV) is one of the most important concepts in home equity lending. It measures how much of your home’s value is already tied to debt.
A lower LTV means:
A higher LTV means:
This ratio helps lenders ensure that borrowers are not over-leveraged against their property.
A home equity loan is a type of loan where a borrower receives a lump sum of money using the equity in their home as collateral.
In most cases, lenders do not allow borrowers to access 100% of their equity. Instead, the amount you can borrow is based on a combined loan-to-value (CLTV) ratio, which typically ranges between 65% and 80%, depending on the lender, credit history, and overall financial profile.
This type of loan is regarded as a second mortgage, and it is of two types.
The following are the typical requirements for a HELOAN:
These requirements ensure that borrowers can reasonably manage the additional debt while maintaining ownership of their home.
Home equity loans function similarly to traditional mortgages in terms of structure and repayment.
First, the lender determines your available equity by subtracting your outstanding mortgage balance from your home’s current market value. Then, they decide how much of that equity you are eligible to borrow based on risk factors and lending guidelines.
Once approved:
Because the loan is secured by your home, missed payments can eventually lead to foreclosure if the situation is not resolved.
The upshots and downsides of the home equity loan are as follows:
HELOCs and home equity loans serve different financial needs.
A home equity loan provides:
A HELOC provides:
This makes HELOCs more suitable for ongoing or uncertain expenses, while home equity loans are better for planned, one-time costs.
Borrowing against home equity may involve several fees depending on the lender and province:
These costs should be considered when calculating the total cost of borrowing.
Homeowners may also consider other financing options depending on their needs:
Each option comes with different risk levels, interest rates, and approval requirements.
While home equity loans are useful, they are not suitable for every situation. They may not be ideal if:
In such cases, unsecured loans or flexible credit lines may be more appropriate.
Because the loan is secured against your property, repayment is critical.
If payments are missed:
Lenders typically prefer to work with borrowers to find repayment solutions before taking legal action.
Depending on how funds are used, there may be tax-related implications for interest paid on home equity borrowing. However, rules vary significantly depending on jurisdiction and personal circumstances.
It is recommended to consult a qualified tax professional for advice specific to your situation.
Being a homeowner avails you of the opportunity to access loans against the equity of your property. Whether you need to finance a child’s college or you are planning a big wedding, this lump sum can come in handy. However, the risk of losing your property might give you pause, especially if you already have other debts.
Reverse mortgages may be an option for homeowners aged 55 and older, but they are not suitable for everyone and depend on individual circumstances.
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