What is home equity?
Home equity is generally the difference between the value of a property and the financing secured against it. Available borrowing may be lower because lenders apply their own limits and qualification requirements.
USE YOUR HOME EQUITY
Your home may give you more financial flexibility.
Home equity financing may allow eligible Canadian homeowners to access part of the value built in their property for renovations, major expenses, investments, debt restructuring or other financing goals.
WHAT TO EXPECT
Start with your situation, not a product.
Mortgage options depend on factors such as the property, available equity, income, credit, existing financing and your overall objective. The right structure is specific to the borrower and the transaction.
✓Review your property value, mortgage balance and other secured financing
✓Compare refinancing, second-mortgage and other home-equity structures where appropriate
✓Understand payments, borrowing costs, fees and how the financing fits your goal
01
Tell us your goal
Complete a streamlined Conixi request with the basics of what you want to accomplish.
02
Get connected
Conixi connects you with an appropriate licensed mortgage professional.
03
Review the options
The mortgage professional can assess your circumstances and explain financing options, costs and next steps.
UNDERSTANDING YOUR OPTIONS
Home Equity Financing: what to consider
Home equity is the portion of a property’s value that is not offset by financing secured against it. Depending on qualification and the existing mortgage, homeowners may explore refinancing, a second mortgage or other secured financing to access part of that equity. The right structure depends on how much is needed, the purpose of the funds and the cost of changing or adding financing.
Before choosing a structure, review:
✓The estimated property value and balances already secured against the home
✓How much financing you actually need and what the funds will be used for
✓Whether changing the first mortgage would create penalties or other costs
✓The interest rate, payment, fees and repayment period of the proposed financing
✓Whether refinancing or adding separate financing better fits the existing mortgage
✓How additional secured borrowing affects your overall household budget
COMMON QUESTIONS
Frequently asked questions
What can home equity financing be used for?
Homeowners may explore it for renovations, major expenses, investments, debt restructuring or other financing needs. The appropriate use and structure depend on the individual situation.
Do I need to replace my current mortgage to access equity?
Not always. Depending on the circumstances, options may include refinancing the existing mortgage or adding financing that sits alongside the first mortgage.
How much equity can I access?
The amount depends on the property value, existing secured financing, lender requirements and the borrower’s qualification. A licensed mortgage professional can review the available options for a specific property.
What costs should I compare?
Consider interest, payments, fees, possible penalties for changing existing financing and the total cost over the expected repayment period.
Is home equity financing the same as a second mortgage?
A second mortgage is one way of borrowing against equity while keeping the first mortgage in place. Refinancing is another approach that replaces or restructures existing mortgage financing.
Transparency first.
Conixi is a mortgage referral platform. We do not provide mortgages directly or offer financial advice. Mortgage availability, rates, terms and approval depend on the lender, property and applicant circumstances.
READY TO START?
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