Equity Takeout & Second Mortgages in Ontario
Tap Into Your Home Equity
If you’ve owned your Ontario home for a few years, there’s a good chance you’ve built up equity — the difference between what your home is worth and what you still owe on your mortgage. An equity takeout turns some of that equity into cash you can actually use, without selling your home.
At ABC Mortgages, we help homeowners across Ontario access their equity through refinancing, second mortgages, and home equity lines of credit — and match your situation to the right option from our network of lenders.
Apply Now — it takes just a few minutes
Three Ways to Access Your Home Equity
1. Mortgage refinance (equity takeout). Replace your current mortgage with a new, larger one and take the difference in cash. Often the lowest-cost way to borrow a large amount against your home.
2. Second mortgage. Keep your existing first mortgage untouched and add a second loan secured against your equity. A good fit when your current mortgage rate is worth keeping.
3. Home equity line of credit (HELOC). A revolving credit line secured by your home — draw what you need, when you need it, and pay interest only on what you use.
Not sure which one fits? That’s exactly what we’re here for — call 647-627-8648 and we’ll walk through it together.
What Homeowners Use Equity Takeout For
- Consolidating high-interest debt into one lower-cost payment
- Home renovations that add value to the property
- Investment opportunities, including additional properties
- Major expenses — education, medical costs, family needs
- Building a financial buffer for what’s ahead
How It Works
1. Tell us about your goals. Start your secure application online in minutes, or call us to talk it through first.
2. We review your options. We look at your equity position, income, and credit picture, then compare options across our lender network.
3. You choose the fit. We walk you through the terms in plain language so you can decide with confidence.
4. Funding. Once everything is finalized, funds are typically available within days to weeks, depending on the product.
Approvals and amounts depend on your full financial picture — income, credit, and the appraised value of your home. We’ll give you a straight answer on what’s realistic before you commit to anything.
Why Work With ABC Mortgages
- Pickering-based mortgage brokerage serving homeowners across Ontario
- Licensed principal broker — FSRA licence #M13001328
- Access to banks, credit unions, and alternative lenders — not just one institution’s products
- A direct line to a real person: 647-627-8648
Common Questions
How much of my equity can I access?
In Canada, you can generally borrow up to 80% of your home’s appraised value, minus what you still owe. The exact amount depends on your income, credit, and the lender’s guidelines.
Will a second mortgage affect my first mortgage?
No — your first mortgage stays exactly as it is. A second mortgage is a separate loan with its own rate and payment schedule, secured against the same property.
Is an equity takeout better than a HELOC?
It depends on how you’ll use the money. A lump-sum refinance or second mortgage suits a one-time need like renovations or debt consolidation; a HELOC suits ongoing or flexible needs. We’ll help you compare.
How fast can I get the funds?
Timelines vary by product and lender, but many equity-takeout files fund within one to three weeks of a complete application.
Ready to Put Your Equity to Work?
Start your secure online application now — or talk to us first if you’d rather.
Direct: 647-627-8648 | Toll-free: 1-800-820-5188 | allen@abcmortgages.ca
ABC Mortgages — 2540 William Jackson Dr, Pickering, ON L1X 0E4. Licensed principal broker, FSRA licence #M13001328.
How much equity can I take out of my home in Ontario?
In Canada, homeowners can generally borrow up to 80% of their home’s appraised value across all mortgages combined. If your home is worth $700,000, total borrowing of up to $560,000 is the guideline — minus what you already owe. Your income and credit also shape the final approved amount.
How long does an equity takeout take?
Straightforward equity takeouts can fund in one to three weeks; complex files take longer. The appraisal and legal registration set the pace. You control the biggest variable — having income documents, your mortgage statement, and property tax bill ready on day one keeps everything moving.
Can I take equity out of my home with bad credit?
Often, yes. Banks prefer strong credit, but alternative and private lenders in Ontario regularly approve equity takeouts for bruised-credit borrowers, weighing your equity cushion and income more heavily. A licensed broker can match you to the right lender type before you apply anywhere.
Will taking equity out affect my existing mortgage?
Not if you use a second mortgage or HELOC — your first mortgage stays exactly as it is, with the same rate and payment. Only a refinance replaces your existing mortgage, which can trigger a prepayment penalty if you break the term early. Always confirm the penalty figure first.
What are the closing costs on an equity takeout?
Budget for an appraisal fee, legal fees to register the new charge on title, and lender or broker fees that vary by lender type. Ask for every fee in writing before committing — reputable brokers disclose the full cost picture upfront so there are no surprises at closing.
Can I use my home equity to buy an investment property?
Yes — many Ontario homeowners use a second mortgage, HELOC, or refinance to fund a down payment on a rental or investment property. Your equity becomes working capital. Lenders will assess your ability to carry both properties, so your income needs to support the full picture.
Is money from an equity takeout taxable in Canada?
Generally no — borrowed money isn’t income, so the funds from an equity takeout aren’t taxed when you receive them. Tax treatment can get nuanced if the money funds investments or a business, so confirm your specific situation with an accountant before proceeding.
Can self-employed homeowners take out equity?
Yes. Self-employed borrowers access equity through the same products — second mortgages, HELOCs, and refinances. Documentation differs: lenders typically want two years of tax returns or business financials instead of a pay stub. Alternative lenders are often more flexible with stated-income files.
Do I need an appraisal for an equity takeout?
In most cases, yes — the lender needs a current, professional value for your home before lending against it. Some lenders accept automated valuations on straightforward files, which is faster and cheaper. Your broker can tell you which valuation type your file is likely to need.
What’s the difference between equity takeout and a HELOC?
Equity takeout is the goal — accessing your home’s value — and a HELOC is one way to do it. A HELOC gives revolving access you draw as needed; other takeout methods like second mortgages or refinances deliver a lump sum. The right method depends on whether you need money once or over time.
More home equity guides
- Consolidate Debt Into Your Mortgage in Ontario
- Can You Get an Equity Takeout With Bad Credit in Ontario?
- Second Mortgage Rates in Ontario
- Equity Takeout vs. HELOC in Ontario: Which Is Right for You?
Equity Take Out Mortgage in Ontario: Take Out Equity Without Selling Your Home
Plenty of Ontario homeowners search for an "equity take out mortgage" — and if that's the term you used, you're in the right place. An equity take out mortgage is simply a mortgage that lets you take out equity you've already built in your home and turn it into usable cash, without selling the property. Instead of your equity sitting locked inside your walls, an equity take out mortgage converts part of it into funds you control.
That equity builds quietly over time: every mortgage payment you make, and every increase in your home's value, adds to it. An equity take out mortgage is how you put it to work. You can take out equity a few ways — by refinancing your current mortgage into a larger one, by adding a second mortgage on top of it, or through a home equity line of credit. The right route depends on your current rate, how much you want to take out, and how your income and credit look. What every route shares is the same math: the 80% rule explained below.
Who Uses an Equity Take Out Mortgage?
Homeowners take out equity for all kinds of reasons. The most common ones we see at ABC Mortgages:
- Paying off high-interest debt — rolling credit cards and personal loans into one lower-rate mortgage payment. If that's your plan, our guide to consolidating debt into your mortgage walks through the numbers.
- Renovations — kitchens, additions, and repairs that raise the home's value while you enjoy them.
- Buying another property — using the equity in your home as the down payment on a rental property or cottage.
- Major life expenses — tuition, helping family members, or a business opportunity that needs funding.
- Breathing room — building a financial cushion instead of leaning on high-interest credit when something unexpected comes up.
In almost every case, the goal is the same: borrow against your own home at mortgage rates instead of paying credit-card or unsecured-loan rates — often a difference of 15 percentage points or more.
How Much Equity Can You Take Out? The 80% Rule
Ontario lenders let you borrow up to 80% of your home's appraised value, minus what you still owe on your mortgage. That 80% ceiling covers everything secured against the home — your first mortgage plus whatever you take out. The formula:
(Home value × 0.80) − mortgage balance = the most you can take out
Here's a worked example. Say your Pickering home is appraised at $850,000 and your mortgage balance is $430,000. 80% of $850,000 is $680,000. Subtract the $430,000 you owe, and you could take out up to $250,000. Your final approval also depends on your income and credit — but your equity room starts with that calculation. Want more examples at different price points? Our guide on how much equity you can take out breaks the math down further.
Choosing How to Take Out Your Equity
A refinance replaces your mortgage entirely with a new, larger one — usually the lowest-cost route, and best when your current rate isn't worth protecting or you're approaching renewal. A second mortgage leaves your first mortgage untouched and adds a separate loan on top; second mortgages start from 6.50%, subject to approval, and they can fund quickly when timing matters. A HELOC gives you a revolving line of credit priced at prime — currently 4.70% — that you draw from only as needed, which suits ongoing or uncertain costs. An independent broker can compare all three against your actual numbers instead of steering you to the one product a single lender sells.
And no — your credit doesn't have to be perfect to take out equity. Alternative and private lenders weigh your equity position heavily, so homeowners with bruised credit often still qualify, typically at a higher rate. The honest first step is finding out where you stand.
Not Sure How Much You Can Take Out?
Estimate your takeout in 60 seconds with our free equity quiz — answer a few quick questions and get a ballpark figure before you talk to anyone.
Prefer to talk it through? Call ABC Mortgages at 647-627-8648 or toll-free 1-800-820-5188, or email allen@abcmortgages.ca.
Principal Broker Lic. #M13001328 · Allen Brothers Circle Inc. — Brokerage Licence #13392
Want your number? Run it in 30 seconds with our free equity takeout calculator — enter your home value and mortgage balance, and see how much equity you could take out under the 80% rule. No sign-up, no obligation.