Home Equity Loans Alberta

Home equity loans in Alberta is a service that provides you quick access to cash. Whether if you need the money to make additional purcahses, fix up your home, pay off expenses, or consolidate your debts, we have many many options you can choose from. A home equity loan simply means you have equity in your home that you can fall back on to help you get a loan from a lender. It is mandatory that you own a home in Alberta in order to be approved for a home equity loan.

There are many lenders in Alberta that you can turn to for a home equity loan. If you meet their minimum requirements, you can fill out their quick and simple online application and expect an instant approval decision in as little as a day. Here at Smarter Loans, we have done the preliminary research for you by providing a long list of reputable companies you can choose from. You have the choice of pre-applying through us or we are happy to pair you up with another lender that is more than qualified to get you a home equity loan in Alberta.


Frequently Asked Questions About Home Equity Loans in Alberta

Am I eligible for a home equity loan in Alberta?

72.4% of Alberta’s population are homeowners, and if you’re one of this number you may be looking to secure financing against the equity in your home. To be eligible to do this, you must:

  • Be at least 18 years old
  • Have proof of identity and address
  • Have an active bank account
  • Own your home

These are the basic requirements to be able to apply for a home equity loan; your chosen lender will also want to assess your financial situation to gauge whether they are comfortable approving your loan application, based on their lending criteria.

How much can I borrow with a home equity loan in Alberta?

Eligible homeowners can borrow up to 85% of their home’s value via a home equity loan, minus any existing loans against the property. The average property in Alberta is worth just over $400,000, and the average mortgage size in the province is $305,000. This means the average homeowner can borrow 85% of $400,000 (which is $340,000), minus $305,000 – totalling an average home equity loan of $35,000.

What credit score do I need for a home equity loan in Alberta?

Each lender has different lending criteria, which includes credit score requirements, so in theory anyone – with any credit score – can access financing based on their Alberta property’s equity. However, most traditional lenders (like banks and credit unions) generally have a minimum credit threshold of 650. Alberta’s average credit score is 655.

How much will a home equity loan in Alberta cost?

Interest rates on home equity loans can be as low as 2% (for the most financially secure), but the average is more like 6%. The exact rate you pay will depend on the lender you go to, your financial circumstances, and the house you’re taking the loan out against.

Do I need to get a home appraisal for a home equity loan in Alberta?

Yes. Basically all home equity lenders require a home appraisal as part of their loan approvals process, so they can determine the appropriate loan amount for you, and assess their risk. You can’t really avoid this. All loans come with fees of some kind, and an appraisal fee is just one. For your home equity loan, you may also have to take into account:

  • Loan origination fees
  • Late payment fees
  • Early repayment fees
  • Closing fees
  • Legal fees

How long does it take to get a home equity loan in Alberta?

That depends on which lender you apply to. Traditional lenders – like banks and credit unions – can take up to six weeks to process your application and release your loan funds. Some other lenders, like online lenders, can offer shorter turnaround times – sometimes as short as a week. If speedy turnaround times are a priority for you, look for lenders that offer this specifically.

What are the alternatives to a home equity loan in Alberta?

There are over 1.5 million homeowners in Alberta, and if you’re one of them, you should know that a home equity loan is not the only route you have to accessing cash. You might also consider a home equity line of credit (HELOC), a second mortgage, or a mortgage refinancing. Each option has its own pros and cons, so be sure you understand what will work best for your circumstances.

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