How Do You Get a Home Equity Loan?

Buying a house is one of life’s biggest financial achievements, but understanding how to unlock your home’s value through lending products can feel confusing. One powerful option is a home equity loan, which allows you to borrow money secured by the equity in your property. In Canada, you can generally access up to 80% of your home’s appraised value, minus your existing mortgage balance. This process, often called “equity release,” can offer a financial boost, but where do you start?

At Tribecca, we specialize in making this process straightforward and stress-free. Whether you’re consolidating debt, funding a major purchase, or navigating a tricky financial situation, we offer fast, flexible home equity solutions for Ontario homeowners to make their home equity loan work best for them.

Before applying for this type of second mortgage, you need to make sure you’re ready. Determine how much equity you have by subtracting your current mortgage balance from the current value of your home. This loan to value ratio will affect your eligibility and credit limit, just as it would with other kinds of secured lending, such as a home equity line of credit. You’ll also want to calculate your outstanding debts, evaluate your mortgage payment history, and check your credit health. Making regular monthly payments and managing your existing credit can impact your approval and the interest rate you receive. 

To apply, you’ll need to have proof of income, a recent mortgage statement, property tax bills, and government-issued ID. Most lenders will require an appraisal to confirm the appraised value of your property. This helps determine your home’s market value based on recent sales in your area. If you’re self-employed or have a non-traditional income stream, preparing these documents can be daunting, but the Tribecca team can walk you through every step.