Home Equity Loans in London, Ontario

2009’s economic crash can still be felt in London, Ontario even today but online distribution of resources has made it easier for the residents. For one, buying a home is significantly easier when securing a home equity loan. Home equity loans are a very viable solution when buying a home because as the value of the home increases, the difference in equity can be taken out as a loan. This makes home equity loans easy to procure because the risk for the lender is reduced. With reduced risk for the lender, all you need to do is take advantage of the limitless upside by utilizing Smarter Loans to apply for a home equity loan today.

So where do you begin? Apply for a home equity loan online today without stressing over all of the information you need to consider. Smarter Loans can simplify the application process for you since we’ve made it

so that you don’t need to research providers individually. Instead, just scroll down and all of the top providers from London can be found in one directory. In order to make a decision easily, scroll down and apply to the best home equity loan provider for your needs.

If it sounds overly complicated, in summary all you need to do is scroll through and click “apply now” next to your chosen provider to unlock a brief online application that involves a basic set of questions to qualify you. Alternatively, pre-apply with Smarter Loans if you’d prefer for us to choose a provider on your behalf that we deem most suitable for your set of needs.

Frequently Asked Questions About Home Equity Loans in London 

Am I eligible for a home equity loan in London?

64% of London’s population own their own home; if you’re one of this group, and want a home equity loan, then there are a few criteria you need to meet. You must:

  • Be at least 18 years old
  • Have proof of identity and address
  • Have an active bank account
  • Have equity in your property
  • Pass your chosen lender’s various approval requirements, which usually include:
    • A minimum credit score
    • A debt-to-income ratio assessment
    • A home appraisal
    • Analysis of your employment income
    • Understanding of your existing equity levels

How much can I borrow with a London home equity loan?

The amount you can borrow with a home equity loan depends on the value of your home and whether you have any other loans secured against it. In theory you can borrow up to a total of 85% of your home’s value; London has an average property price of $555,000, so this means you can borrow up to $471,750 (85%). However, if you have a mortgage or other home loan, you must minus its balance from your 85% borrowing room. Some lenders also have upper limits on how much you can borrow.

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

Each lender has different eligibility criteria, so in theory anyone – with any credit score – can access financing based on their London property’s equity. However, most traditional lenders (like banks and credit unions) do have a minimum credit score threshold of 650. The average score in London is 665. This doesn’t mean that Londoners failing to meet this level can’t get a home equity loan – they’ll just need to find a more flexible lender.

How much will a home equity loan in London cost?

Interest rates on London home equity loans can be as low as 2%, but the average is just under 6%. The exact rate you pay will depend on the lender you go to, your financial circumstances, and the property in question. It’s important to remember though that interest charges are not the only cost associated with taking out a home equity loan; you also need to take into account any fees.

What are the pros and cons of a London home equity loan?

Every loan type has its own set of advantages and disadvantages, and home equity loans are no different. Here are the main points you need to consider with a home equity loan:


  • Known monthly repayments
  • Typically lower interest rates than with other types of loan
  • Some tax advantages (interest payments may be tax deductible)
  • You can use the money for anything
  • Long loan terms are available


  • Monthly repayments will be required (in addition to your original mortgage)
  • Might be more expensive than a HELOC
  • Your home is at risk if you fail to make your repayments
  • If you sell your home at a loss, you are responsible for the loan’s balance
  • You need equity in your home

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

That depends on which London lender you apply to. Most traditional lenders – like banks and credit unions – have fairly slow processes, and it 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. To ensure your loan application goes through as quickly as possible, make sure you submit it with all of the required supporting documentation.

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