Equity Takeout Toronto

Equity Takeout is a financial product that allows you to take advantage of your home equity. Home equity refers to the difference between all your existing mortgages and your property’s appraised value.
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Equity Takeout Toronto

For most homeowners in Toronto, their home equity is often the biggest component of their net worth. Equity Takeout is used to “take out” equity to use for other purposes. Some of the most common uses of Equity Takeout are:
  • Home Renovation: Of the $41 billion in equity takeout in 2016, a recent survey shows that 31% (or $12.8 billion) was used for renovation/home repair. One reason for this is that home renovations are expensive and saving a lump sum is not always easy.
  • Paying down debt: Some debts are more expensive and urgent than others. You can use equity takeout to consolidate debt (to pay off expensive debt for which you are paying high-interest rates and get a cheaper one). Taking care of bad debt will improve your credit score. 28% of those surveyed said they used the cash for debt consolidation.
  • Education: Education in Canada is not cheap and it cannot wait until the end of the amortization period. If you feel that a professional certificate will further your career, equity takeout is a good idea.
  • Down payment on another property: If you are looking to become a property investor, especially one that brings income, home equity is a good source of the down payment required for the mortgage.
  • Investment: $9.1 billion (22%) of the home equity taken out in 2016 was used on investment. You should be careful with this because investments can go either way.
Mortgage Offers
pick the one thats right for you.
  • get
    $ 2,000
    on purchase over
    $500, 000
  • Receive
    $ 1,400
    when you transfer
    your mortgage of over $500,000
  • complimentary
    12 months
    Home service plan
    fint out more
Featured Rates
Fixed
  • Lender
  • Rate
  • Term
  • Toronto-Dominion
    2.34%
    5 years
  • Scotiabank
    2.39%
    2 years
  • CMLS
    2.29%
    3 years
  • RFA
    2.44%
    5 years
  • First National Bank
    1.99%
    4 years
  • DUCA
    1.98%
    2 year
  • B2B
    2.84%
    2 years
  • Meridian
    2.19%
    5 years
  • RMG Mortgage
    2.29%
    5 years
  • Manulife Bank
    2.14%
    5 years
Variable
  • Lender
  • Rate
  • Home Trust
    4.49%
    5 years
  • Mcap
    2.15%
    5 years
Other
  • Type
  • Rate
  • Secured line of credit
    2.95%
  • Private mortgages
    5.99%
Questions?
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The Equity Takeout may be a variable rate arranged like a line of credit (where you withdraw case at your discretion) or a fixed rate.
Traditional lenders in Toronto allow you to borrow not more than 80% of your home’s equity while private lenders go up to 85%. The Canadian government implemented this guideline in response to the 2008 credit crunch to ensure borrowers do not overstretch themselves. This means if your home equity is $200,000 as per our example above, you can get a maximum of $160,000 with a traditional bank. If you are hard-pressed for cash and you don’t have any other source, you may have to go to a private lender. However, you expect to pay higher interest rates with a private lender. There are several equity takeout options available to Toronto borrowers. We will guide you on the best takeout option given your particular circumstances. Different lenders have different equity takeout terms – we will help you hunt and negotiate for the best deal. You need an experienced mortgage broker by your side because it is in a lender’s best interest to give you the highest possible interest rates. Contact our team today for professional guidance throughout the process.


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    I used Nick to renew my mortgage. He found me a better deal than my bank could offer and I intend to use him again the next time I need to renew. Nick did all the work, he made it easy and simple for me. He really knows his stuff!
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    I have been dealing with Masoud for my first mortgage back in 2016 and my second mortgage in 2019. He has always been of great help and easy access. He is the first person I go to with regards to mortgage questions. Keep up the good work guys!!
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    Working with Masoud was a great experience. We learned about mortgage options that were new to us as we were first-time buyers. Knowledgeable and helpful with no pressure, we were able to make an informed decision that worked out very well for our needs.
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    I can't recommend Masoud enough if you need a mortgage, a renewal, or even help getting to that point. He is extremely knowledgeable and resourceful and works incredibly hard for his clients! He’s done our first mortgage in 2014, refinance in 2028 and now our second mortgage this winter.
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