Home Equity Loans in Toronto, Ontario

Toronto, Ontario is a very exciting place to be, especially in terms of the real estate market. As the value of homes continues to skyrocket upwards, a very popular choice of loan lately has been the home equity loan. Home equity loans are much easier to get approved for as the risk is reduced for the lender. If you buy a home, as the value of the home increases, the amount by which it increases can be then taken out as a loan. Home equity loans are particularly beneficial in Toronto where the value of real estate continues to rise. With the help of Smarter Loans, you can now acquire an home equity loan easily.

The value of real estate in Toronto continues to rise for a multitude of different reasons. The culture is still in it’s infancy even though Toronto has gained international recognition on multiple occasions lately.

Procure a home equity loan in Toronto without much hassle by connecting with a company that is compatible for you. There’s an even better chance to get approved if you are able to reference all of the top providers in Toronto on a single page. To help you do this, Smarter Loans has created a directory below that lists all of them alongside their terms, rates and offers.

It’s quite easy to apply, just scroll down and once you’ve found an option that you desire, click “apply now” in order to proceed. Answer a brief and standard set of questions to get qualified for your home equity loan. Alternatively if you would prefer, you can pre-apply with Smarter Loans and in that case, we’ll arrange for you to be connected with the most suitable provider for your needs.

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.

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