Your home has built equity.
Put it to work.
Equity take-out lets you access the accumulated value in your home — for debt consolidation, major expenses, or investment purposes. Private lenders assess based on property value, not just income or credit score.
Is This Right For You?
When equity take-out makes sense
- You have significant equity built up and want to access it without selling your home
- You want to pay off high-interest credit cards, lines of credit, or unsecured debt
- You're funding a major project — home renovations, post-secondary education, or a business need
- You're purchasing a second property or investment and need a down payment
- A bank refinance was declined due to credit events, income documentation, or property type
- You want to consolidate multiple mortgages or debts into a single payment
Typical Terms Overview
Rates shown are indicative ranges for general information only. Your actual rate will depend on property type, location, loan-to-value ratio, borrower profile, and other underwriting factors. Rates are subject to change without notice.
The Process
How equity take-out works
Whether through a refinance or second mortgage, the process is straightforward once your equity position is confirmed.
Property equity review
We calculate your current equity position based on the property value and outstanding mortgage(s). This determines how much is available to take out.
Determine the structure
Depending on your first mortgage terms, we may structure a second mortgage behind it, or refinance the entire first mortgage with a new private lender. Each option has different cost implications.
Appraisal and lender approval
An independent appraisal confirms the current value. The lender reviews the full file and issues a commitment letter with the specific terms.
Legal, registration, and funding
Your lawyer handles conveyancing. The mortgage is registered on title and funds are advanced. Depending on the structure, existing mortgages may be discharged at the same time.
What Affects Your Terms
Key factors lenders consider
Available equity
Most private lenders will advance funds up to 75–80% of the appraised value in urban Ontario. The amount you can take out is the difference between that ceiling and what you already owe.
Purpose of funds
Lenders do not typically restrict how you use the funds, but large unusual purposes may prompt questions. Debt consolidation, renovations, and investment property down payments are all routine.
Existing mortgage penalties
If you're breaking a fixed-rate first mortgage to refinance, the penalty can be significant. In many cases it is more cost-effective to add a second mortgage rather than break the first.
Income verification
Private equity take-outs are more flexible than bank refinances. Stated income with supporting documentation is accepted by many lenders for self-employed or non-traditional income borrowers.
Common Questions
Equity take-out FAQ
What's the difference between equity take-out and a second mortgage?
A second mortgage is one way to take out equity — it sits behind your existing first mortgage. Equity take-out is the broader goal, and it can also be achieved by refinancing your entire mortgage with a new lender. Your broker will recommend the most cost-effective structure based on your current mortgage terms.
How much equity can I access?
Most private lenders in Ontario advance up to 75–80% of the property's appraised value in major urban markets. If your property is worth $700,000 and you owe $400,000 on your first mortgage, you might be able to access up to $160,000–$180,000 in a second position. Rural or non-standard properties may have lower limits.
How long does an equity take-out take to close?
Once an appraisal is complete and the lender commits, most private equity take-outs close within 5–10 business days. Appraisal scheduling is often the pacing factor. Urgent situations can sometimes close faster.
What does an equity take-out cost?
Costs include the interest rate on the new mortgage, lender fees (typically 1–3%), broker fees, appraisal (usually $300–$600), and legal fees. If you are breaking a first mortgage, add any prepayment penalty. Your broker will give you a written cost breakdown before you commit.
Can I do an equity take-out if I'm self-employed with variable income?
Yes. Many of our private lender relationships are specifically structured for self-employed borrowers. We work from your Notice of Assessment, business financials, or stated income with supporting context — depending on the lender and the loan-to-value.
See how much equity you can access.
We'll assess your property, run the numbers, and give you a realistic picture of what's available and what it will cost.