At Lendworth, we specialize in fast, flexible, equity-based financing designed to help Ontario homeowners access cash—without the stress, delays, or complicated hurdles of traditional bank lending.
Whether you need to consolidate debt, renovate, invest, or simply get ahead, here’s everything you need to know about home equity and how you can put it to work.
What Is Home Equity?
Home equity is the portion of your home that you truly own. It’s calculated as:
Appraised Home Value – Total Amount Owed on Mortgages or Secured Loans
Example:
If your home is worth $250,000 and you owe $150,000, your home equity is $100,000.
Your equity increases as:
- You pay down your mortgage or HELOC
- You pay off any other secured loans
- Property values rise in your area
Lenders—especially equity-based lenders like Lendworth—use your available equity (not your credit score) to determine how much you can borrow.
How Borrowing Against Home Equity Works
Borrowing against home equity means using your property as security for a new loan. In Ontario, homeowners can typically access up to 80% of the home’s appraised value.
Example:
Home value: $250,000
80% loan limit: $200,000
Mortgage owed: $150,000
Available equity to borrow: $50,000
Because the loan is secured by your property:
- Interest rates are often lower than unsecured loans
- Approvals are faster and more flexible
- Your home is used as collateral—meaning timely repayment is essential
You may also need to cover standard fees such as appraisals, title searches, title insurance, and legal costs. Lendworth keeps these costs transparent and moves your file quickly.
Types of Home Equity Solutions
Every homeowner’s situation is different. Here are the most common equity-based lending options available in Ontario—and how Lendworth helps you choose the right one.
1. Second Mortgages
A second mortgage is a new mortgage registered behind your first mortgage. It’s ideal when you need a lump sum for:
- Debt consolidation
- Home renovations
- Investment opportunities
- Paying tax arrears
- Covering short-term cash needs
Rates are typically higher than a first mortgage due to lender risk, but approvals are faster and more flexible—especially with equity-based lenders.
2. Home Equity Lines of Credit (HELOCs)
A HELOC works like a revolving credit line secured by your property. You can borrow, repay, and borrow again—up to 65% of your home’s value.
Key features:
- Variable interest rate
- Borrow only what you need
- Interest-only payment options
HELOCs are usually offered by banks with stricter income and credit requirements. If you don’t qualify at the bank, Lendworth offers alternative equity-based solutions.
3. Reverse Mortgages
Designed for older homeowners (typically 55+), reverse mortgages allow you to access up to 55% of your home’s value with:
- No monthly payments
- No income or credit requirements
- Funds released as lump sum or instalments
Interest accumulates over time, and repayment happens when you sell, move, or settle the estate.
4. Home Equity Loans
A home equity loan provides a one-time lump sum—up to 80% of your home’s value. Payments are fixed, predictable, and structured over a set term.
Great for homeowners who prefer:
- Straightforward repayment
- Fixed interest rates
- No revolving credit line
Once it’s paid off, the loan cannot be re-borrowed.
5. Re-Borrowing Prepaid Amounts
If you’ve made extra mortgage payments (prepayments), some lenders may allow you to re-borrow those funds. This increases your mortgage balance and interest costs but gives quick access to cash.
Not all lenders offer this feature, but it can be useful for certain borrowers.
Comparing Your Options
Here is a simplified comparison to help you choose the right solution:
| Product | Credit Limit | Interest Rates | Access to Funds | Typical Fees |
| Second Mortgage | Up to 80% minus your mortgage balance | Fixed or variable; higher than first mortgage | Lump sum | Appraisal, title search, title insurance, legal |
| HELOC | Up to 65% of home value | Variable | Borrow anytime | Appraisal, title search, title insurance, legal |
| Reverse Mortgage | Up to 55% minus any existing mortgage | Higher than HELOC/mortgage | Lump sum or instalments | Appraisal, title search, title insurance, legal |
| Home Equity Loan | Up to 80% of home value | Fixed or variable | Lump sum | Appraisal, title search, title insurance, legal |
| Re-Borrowing Prepaid Amounts | Total amount prepaid | Same as existing mortgage | Lump sum | Usually none |
How Lendworth Helps Ontario Homeowners
Lendworth specializes in fast, flexible, equity-based financing, including:
- First & second mortgages
- HELOC alternatives
- Bridge loans
- Debt consolidation loans
- Pre-paid interest mortgages
- Equity take-out solutions
We approve applications even when banks say no:
✔ No minimum credit score
✔ No income requirement in many cases
✔ Approvals in 24–48 hours
✔ Funding across Ontario
Whether you need $25,000 or $1,000,000+, we make the process simple, transparent, and tailored to your needs.
Thinking About Using Your Home Equity?
Talk to a Lendworth mortgage specialist today.
Call 905-597-1225, or apply online at www.lendworth.ca.
Unlock the equity you’ve built—and get the financial breathing room you deserve.