The perfect mortgage for
reclaiming your equity

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Home Equity Loan

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.

  • Make use of the home equity you already have
  • Get maximum return on your investment in your home
  • Finance home renovations and improvements that add value

The right source for
Canadian home equity

Lower is Canada’s premium broker offering solutions for every type of home equity financing, no matter the purpose.

  • See the lowest rates

    See the lowest rates

    We’ll check 40+ lenders and 10,000 products in the market.

  • Get expert advice

    Get expert advice

    Speak with your trusted Lower advisors anytime.

  • We do the hard work

    We do the hard work

    Lower advisors will do all the application admin.

Canadians love

Rated 4.9 / 5 on Google, Facebook, Trustpilot, Comparewise and others.

  • Brian Molnar
    Brian Molnar


    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.

  • Karen Austin
    Karen Austin


    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.

  • Valerie Fincher
    Valerie Fincher


    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.

  • Jeff Mahlum
    Jeff Mahlum


    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.

  • Clementine Mason
    Clementine Mason


    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.

  • Averi Blackwell
    Averi Blackwell


    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.

  • Melissa Dodds
    Melissa Dodds


    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!

  • John Hartman
    John Hartman


    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.

  • Ruben Gonzalez
    Ruben Gonzalez


    Ammar was amazing to work with from start to finish. Found us such an excellent rate. He went above and beyond for us.

  • Nicola Weber
    Nicola Weber


    @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.

  • Brooke Cheng
    Brooke Cheng


    My family member recommend @lowerdotca and to speak to Ammar. He doesn't disappoint. I was very satisfied with his service.

  • Fredy Pollich
    Fredy Pollich


    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.

  • Tricia Seward
    Tricia Seward


    @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.

  • Judson Flatley
    Judson Flatley


    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.

  • Josephine R
    Josephine R


    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.

  • Albert Taylor
    Albert Taylor


    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.

  • William Westley
    William Westley


    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

  • Javier Garcia
    Javier Garcia


    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.

  • Michele Peers
    Michele Peers


    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.

  • Donal Lynch
    Donal Lynch


    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.

FAQs about Home Equity Loans

Have a different question? Contact us today.

What is a home equity loan?

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.

How does a home equity loan work?

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.

How do I get a home equity loan?

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.

Are home equity loans tax deductible?

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.

How much equity do I need in my property to access a HELOC?

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 locked in. 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 loan - source mortgages

What is Home Equity?

Home equity is the value of your home. If your home is worth $500,000, the equity is $500,000. Assuming you got the house through a mortgage from Lower and have up to $150,000 left in debt. Then you have paid up to $350,000 of the mortgage, meaning your home equity is $350,000. That said, your home’s equity increases as your home’s price value and mortgage repayment increase.

What is a Home Equity Loan

A home equity loan (HELOAN) is the amount a borrower can get while using the equity of his home as collateral. If the equity of his home is $500,000, he can get a HELOAN of up to $500,000. However, some lenders give out a percentage of the equity as a loan. This ranges between 55% and 90% of the equity, depending on your lender and credit history.

This type of loan is regarded as a second mortgage, and it is of two types.

  • Home equity loan (closed-ended)
  • Home equity line of credit (open-ended)

Requirements for a HELOAN

The following are the requirements for a HELOAN.

  • Have up to 20% of the equity in your property (home).
  • An average credit score rating of about 600 and above.
  • The ratio of your debt to income (DTI) should be low.
  • Reliable payment history
  • Stable income.

How Does a Home Equity Loan Work?

Second mortgages are another name for home equity loans, which function similarly to traditional mortgages. Your lender subtracts your mortgage debt from the current price called of your home to determine the equity. You won’t go through this phase if you aren’t on a mortgage loan.

Then he states the percentage of the equity you would be given as a loan. You can get up to 90% of your home equity or more if you have a good credit score. Afterward, a monthly repayment plan would be set up to cover both the principal amount and the fixed interest. This would spread across an agreed loan term. As with mortgages, you’d lose your home to your lender if you cannot pay up the equity home loan.

Pros and Cons of Home Equity Loan?

The upshots and downsides of the home equity loan are as follows:


  • It is a quick way to access a large amount of cash to renovate your building or pay for college.
  • It comes with a fixed interest rate.
  • You can access a HELOAN with an average credit score.
  • Long terms of up to 30 years.


  • Your debt might increase above the value of your home if the price of real estate drops.
  • You might lose your home if you are unable to repay the loan.
  • Difficulty in relocating as you might lose the money you’ve paid on selling your home.
heloc - source mortgages

HELOC Vs Home Equity Loan

HELOC and home equity loans are often mistaken as the same. However, they are different from one another. While loans are fixed rates, HELOC is a variable rate. Thus, a home equity line of credit allows the borrower to access loans at different times against the equity of his home. The lender states an agreed initial limit on the line of credit based on some requirements similar to HELOANs.

Home Equity Loan Fees

The fees that may apply to equity home loans are as follows:

  • Stamp duties
  • Early pay-off fees
  • Title fees
  • Inactivity fees
  • Arrangement fees
  • Membership or annual fees
  • Closing fees
  • Surveyor, conveyor, or valuation fees
  • Originator fees
  • Appraisal fees

Alternatives to Home Equity Loan

Here are some alternatives to this type of loan.


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 comes in handy. However, the risk of losing your property might give you cold feet, especially if you have other pending debts. You might want to consider a reverse mortgage over a home equity loan.