Home Equity Loans in Vaughan, Ontario

Vaughan, Ontario is frequently looked to as an ideal place to buy a home because of the investment in attractions that has really paid off in recent years. Home equity loans are a loan that is specifically useful when it comes to buying a home. Many people in Vaughan have not failed to take notice of this because of the specific way that home equity loans work. Property value in Vaughan continues to rise steadily as the demand to move there grows. The way that a home equity loan works is that as the value of the home increases, you can take out the increased equity as a loan. Since this is a form of secured loan, home equity loans are much easier to get approved for. All it takes is an online application to qualify for a home equity loan in Vaughan. Take advantage of one today with the help of Smarter Loans.

If you are interested in a home equity loan in Vaughan for the purpose of helping you acquire the home of your dreams,

Smarter Loans can help you secure a home equity loan. To help you apply to a provider that fully understands and is able to cater to your needs, we’ve put together a catalogue of the top, most reliable home equity loan providers from Vaughan. Researching providers becomes incredibly simple, just scroll down and you’ll be able to compare offers, research providers and apply directly to the best fitted one for your needs.

We’ve been careful to ensure that every reliable provider from Vaughan that provides home equity loans has been included in the directory. Scroll through with confidence and hit “apply now” beside the name of the provider that you feel best about. Alternatively, pre-apply with Smarter Loans if you would prefer for us to choose a provider that’s deemed most suitable.

Frequently Asked Questions About Home Equity Loans in Vaughn

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

Vaughan is home to nearly 100,000 private homes, and the amount available to borrow against the equity in these homes depends on two things: the value of the home, and whether there are any other loans secured against it. This is how the math works:

  1. Take the value of your home (in Vaughan the average house is worth just under $1.5 million)
  2. Calculate 85% of this value (in our example, 85% of $1.5 million is $1.275 million)
  3. Deduct the value of any existing mortgages on the property (for example, if you have a $500,000 mortgage already, take this amount away from your $1.275 million borrowing room)
  4. This then gives you the upper limit on how much you can borrow via a home equity loan (for our example above, this comes to $775,000). Some lenders also have upper limits on how much you can borrow, which may come into play for larger loan sizes.

What are the alternatives to a home equity loan?

If you own your own property in Vaughan, 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.

How much will a home equity loan in Vaughan cost?

Interest rates on Vaughan – and GTA – 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.

Can I get an interest-only home equity loan in Vaughan?

Almost all home equity loans in Vaughan are repayment loans rather than interest-only loans. Exceptional borrowers, with a lot of equity, very high credit scores, or other financial criteria that makes them a very safe bet, may be able to get an interest-only home equity loan. However it’s important to bear in mind that most traditional lenders won’t offer interest-only home equity loans, so alternative lenders are your best bet if this is a priority for you.

What are the pros and cons of a Vaughan 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

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