Home Equity Loan Calculator: How Much Can You Borrow?
See how much you can realistically borrow against your home — including the B-lender and private tiers the bank calculators leave out. Bad credit changes your rate, not this math.
How much can you borrow against your home?
Bad-credit aware: see your room at each lender tier. Estimates only — the appraisal governs.
Planning estimate only — lender caps vary and the appraised value decides the final number. For a real range on your property: 1-866-329-8801.
What the monthly payment looks like on a home equity loan
Unlike a HELOC, a home equity loan is amortized — every payment carries interest and principal, so the balance actually falls. Two illustrative scenarios on a $150,000 home equity loan at 7.99%:
- 25-year amortization: about $1,157/month. Lowest payment, easiest to qualify for, most total interest.
- 15-year amortization: about $1,433/month. $276 more per month, but the debt is gone a decade sooner.
The amortization you choose is really a cash-flow decision. Most homeowners coming out of a tight stretch take the longer amortization for breathing room, then shorten it (or refinance to a prime lender) once their credit and income picture recovers. The calculator above lets you adjust the term and watch both the payment and the lifetime interest move.
Fixed lump sum vs. revolving line: why most borrowers here take the loan
If your bank declined you and the purpose is defined — consolidate $60,000 of cards, clear CRA arrears, fund one renovation — the fixed loan usually wins. The rate is locked for the term, the payment never surprises you, and there’s no open line inviting a new balance. A HELOC’s flexibility matters when costs arrive in stages; it works against you when the goal is getting out of debt on a schedule.
There’s also an approval angle: alternative lenders price a defined payout with a fixed schedule more comfortably than open-ended revolving credit for a rebuilding borrower, which can mean a slightly better rate for the loan than the line.
The true cost: what actually lands in your account
The advance and the arrival amount differ, and it’s better to know before signing. Typical items on an alternative home equity loan: lender fee (often 1–3% of the loan), brokerage fee on B/private deals, legal and registration costs, and an appraisal ($350–$500, usually the only upfront cost). On a $150,000 loan, roughly $4,000–$7,500 might be deducted from the advance depending on the lender and complexity — every dollar disclosed in writing before you commit.
For the full picture including penalty math on breaking an existing mortgage, run the True Cost of Borrowing calculator.
The 12–24 month exit plan
A home equity loan from a B or private lender at 7.99–10.99% (illustrative) isn’t meant to be permanent — it’s the bridge phase. The sequence that plays out for most rebuilding borrowers: consolidate the high-interest debt now, make every payment on time, watch utilization drop and the credit file heal over 60–90 days and beyond, then refinance the whole position with a mainstream lender at renewal — typically 12–24 months in. The “expensive” phase is temporary by design.
When you run your numbers above, judge the payment on that timeline: it needs to be sustainable for one to two years, not twenty-five.
When the math says don’t
If 80% of your home’s value minus your first mortgage leaves only $20,000–$30,000 of room, the fixed costs eat too large a share of a small loan — a different structure (or waiting for more equity) may serve you better. And if the consolidated payment still exceeds what your income comfortably carries, borrowing more against the house isn’t the answer; that’s a conversation about the property itself, and having it early preserves options. Honest math first — that’s what this page is for.
Frequently Asked Questions
What is a home equity loan and how does it work in Canada?
It’s a lump-sum loan secured against the equity in your home, registered as a mortgage on title. Because the property backs the loan, approval leans on equity and the home’s value more than your credit score — which is why it’s the go-to product for homeowners the banks have turned down.
How much equity can I borrow against my home?
Most B lenders go to 80% of appraised value minus what you owe; private lenders typically cap at 75%. On a $700,000 home with $400,000 owing, that’s roughly $160,000 at 80% — run your own numbers in the calculator above.
Can I get a home equity loan with bad credit?
Yes. Equity lending is priced on the property, not your score — low credit, past consumer proposals and even active collections can still qualify if the equity is there. Expect B-lender rates around 5.99–7.99% or private rates around 9–14% instead of bank pricing.
What are home equity loan rates in Canada right now?
B-lender seconds generally run about 5.99–7.99%. Private home equity loans run about 9–14%, plus a lender fee of 1–2% and broker fee of 1–2%. Your loan-to-value and location decide which tier you land in.
Home equity loan vs HELOC vs refinance — which is right?
A HELOC is cheapest but needs bank-level credit and income. A refinance replaces your whole first mortgage — costly if you’d break a low rate. A home equity loan (second mortgage) leaves your first mortgage untouched and closes fast, which is why it wins when credit is bruised or timing is tight.
How fast can I get the money?
With an appraisal booked promptly, B-lender deals typically fund in 1–2 weeks; private deals can fund in as little as 48–72 hours for urgent files like stopping a power of sale or foreclosure.
Is using home equity to pay off debt a good idea?
Trading 21% credit-card interest for single-digit secured interest usually cuts hundreds off the monthly bill and stops the credit damage. The trade-off is real: your home now backs the debt, so it only works with a plan — ideally an exit back to an A lender once your credit recovers.
Want your real numbers, not estimates?
One call gets you an actual range for your property and situation — before any credit check.
📞 1-866-329-8801
Online Application →
Parm Mehmi, Principal Broker · FSRA #13163 | FCAA #511322 · Licensed in Ontario, Alberta & Saskatchewan
Planning estimates only — not financial, lending or legal advice. Lender terms vary; appraisals and payout statements govern actual figures.
See What This Looks Like in Your City
These numbers are estimates. What you can actually borrow depends on an appraisal of your property and the lenders active in your market. Pick your city for local figures, or call and we will run it with you.
Ontario
Alberta
How much can you borrow against your home?
The formula
Appraised value × 0.80 − existing mortgage balance = equity available
Worked example
On a $700,000 Toronto home with a $400,000 first mortgage: $700,000 × 0.80 = $560,000. Subtract the $400,000 mortgage and $160,000 of equity is available.
Worth knowing: The 80% loan-to-value ceiling is a federal rule on refinances, not a lender preference. No broker can raise it.
Figures verified August 2026. Estimates only — your actual terms depend on your file.