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Frequently Asked Questions About Home Equity Loans in Toronto
What paperwork do I need to apply for a home equity loan in Toronto?
To apply for a home equity loan in Toronto, you’ll need:
- I.D.
- Proof of address
- Your bank account details
- Your property’s full details (including information on any existing mortgages on it, and your ownership documents)
- Proof of income
- Other financial documents that illustrate all of your assets and debts
With this information a lender can then assess your financial position and whether they are comfortable lending to you.
How much can I borrow with a home equity loan in Toronto?
The amount you can borrow with a home equity loan depends on the value of your home and how much in other loans you have secured against it. You can borrow up to a total of 85% of your home’s value. In Toronto the average property is worth $1.16 million, so this means you can borrow up to $986,000 (85%), minus the balance of any existing debt (such as your mortgage – which in Toronto averages $575,000). Some lenders also have upper limits on how much you can borrow.
What are the alternatives to a home equity loan?
If you are one of the 2 million homeowners in Toronto, you should know that a home equity loan is not the only route you have to access 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.
What credit score do I need for a home equity loan in Toronto?
Each lender has different eligibility criteria, so in theory anyone – with any credit score – can access financing based on their Toronto property’s equity. However, most traditional lenders (like banks and credit unions) do have a minimum credit score threshold of 650. Toronto’s average credit score is 694, so most Toronto borrowers meet this criteria. And for those that don’t, there are always alternative lenders to consider.
What’s the best interest rate I can get on a home equity loan in Toronto?
Interest rates on Toronto 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 also take into account loan fees when calculating your loan’s eventual cost.
Where can I get a home equity loan in Toronto?
As Canada’s biggest city, Toronto offers plenty of options for its homeowners seeking a home equity loan. The list in the table above is a good place to start; there are also traditional lenders, like banks and credit unions, and a slew of online lenders, as well as some alternative lenders for those looking for more bespoke loan terms. It’s important to make sure that wherever you go, your chosen lender is reputable. Avoid anywhere that has high fees, isn’t transparent, or has bad customer reviews. With so much choice available, Torontonians should have no problem finding a lender that works for them.
Expert Review & Editorial Standards
This page was researched, written, and reviewed by financial professionals with expertise in Canadian lending regulations. All information is regularly updated to reflect current rates, terms, and regulatory changes.
Jenna West
Financial Writer & Content Director
Jenna has covered the Canadian FinTech and consumer lending industry since 2017. She specializes in regulatory updates, consumer protection, and helping Canadians navigate complex financial products.
- 8+ years analyzing Canadian consumer lending
- Monitors FCAC and provincial regulatory changes
- Specializes in personal loans and alternative lending
Amy Orr
Financial Content Specialist
Amy is a financial writer with 10+ years covering Canadian, U.S., and U.K. financial markets. She holds a Masters in Finance from the University of Edinburgh Business School and formerly worked in the hedge fund sector.
- Masters in Finance, University of Edinburgh
- Former hedge fund professional
- Published in major financial publications
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Every page undergoes research, expert writing, fact-checking, and review by our Financial Content Director. We verify all rates, terms, and regulatory information against official sources including FCAC guidelines and provincial lending regulations.
Last Updated: October 11, 2025 | Next Review: Ongoing monitoring
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