Home Equity Line of Credit Toronto

Qualification for HELOC varies from one lender to the next. Other than having equity on your home and retaining equity of a minimum 20%, other HELOC qualifications include:

Good credit score (typically 740+ to get the best rates). Credit score under 650 will rule you out with most lenders
Proof of income to show you can afford the monthly payments. These could be pay tubs, T4s, and so on
A debt-to-income ratio of between 40% and 50%

Proof that you own the home
Mortgage details such as the current mortgage term, balance, and amortization period
Your home’s value

Home Equity Line of Credit Toronto
HELOC is easier to access compared to other types of credit and is cheaper than unsecured and credit card loans. You can pay the money back at any time without a repayment penalty.
The applicable interest rate is the higher of either the Bank of Canada’s conventional 5-year mortgage rate or the interest rate negotiated with the lender + 2%.
Home Equity Line of Credit Toronto
The law does not allow you to access more than 80% of your home equity, meaning, in our example, you would only have access to $80,000. A HELOC in Canada can be a maximum of 65% of your home’s appraised value unless the lender combines the HELOC with the balance remaining on your mortgage, in which case you get up to 80% of the value of the home. However, it is up to the lender to determine exactly how much of the 80% they’ll actually lend you.
Home Equity Line of Credit Toronto
You can draw on the revolving fund at any time and you will only have to start making payments once you have accessed the money. Once you have accessed the money, you have to at least meet the monthly interest payments. Whereas a conventional mortgage or a fixed-term loan has an amortization period, HELOCs in Canada typically do not.

Featured Rates

Fixed

Lender
Rate
Term

Toronto-Dominion
1.94%
5 years
Scotiabank
1.99%
5 years
CMLS
1.84%
5 years
RFA
1.64%
5 years
First National Bank
1.74%
3 years
DUCA
1.99%
5 year
B2B
2.64%
5 years
Meridian
1.6%
5 years
RMG Mortgage
1.84%
5 years
Manulife Bank
1.89%
5 years

Variable

Lender
Rate

Home Trust
4.49%
5 years
Mcap
1.95%
5 years

Other

Type
Rate

Secured line of credit
2.95%
Private mortgages
5.99%

Questions?

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Lowest Interest Rates and Terms

We search for the lender with the lowest interest rates and the terms that best suit you. We also go for a lender with the least fees. The most common HELOC fees are appraisal fees, title search and title insurance fees, and legal fees. Lenders are usually flexible and our team’s negotiation skills honed over years means the best possible deal. Did you know you can pay off your mortgage using a HELOC? You can replace your mortgage loan with your HELOC since HELOC interest rates are lower than those of a mortgage. Some lenders transfer mortgages into HELOCs, but you will have to pay a penalty if you are paying off your mortgage early. We will do the math to determine if you will save by replacing the mortgage with a HELOC.

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Customer Testimonials

Boyd Wehner ★★★★★
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!
Nicole B. ★★★★★
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!!
kit cathe ★★★★★
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.
David Smith ★★★★★
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.