Home Equity Loans
In Canada, homeowners can get a home equity loan based on their property's value minus the mortgage balance. This flexible loan, available for various property types, is approved quickly and doesn't heavily rely on credit scores or income.
Canadians choose FatCatLoans for our tailored solutions and fast approval—often within 24 hours. With our experience and lender network, we’ll find the perfect loan for your needs. Apply online today!
Why Apply Through Us?
- Borrow against your home's equity
- All credit welcome
- Secure the lowest rate
- Cost-effective alternative to an unsecured loan
- Get access to more funds
Top Questions...
How does a Home Equity Loan Work?
A home equity loan, utilizes your home's equity as collateral. Your borrowing limit hinges on the equity accumulated in your home, typically up to 85% of its total value.
Once your home's equity is appraised, our lenders are committed to securing the most favourable rate and terms available to you.
Will I need to get my home appraised?
Not all lenders require a full appraisal, but many prefer it to ensure accurate home value. Your home's value is key to loan eligibility. If a full appraisal isn't needed, your lender might use:
- County Assessments
- Automated value models
A recent home appraisal can also speed up your application process.
How do I build my home's equity?
Your house's equity can increase in various ways:
- Regularly paying your mortgage.
- Investing in home renovations or upgrades.
- Benefiting from property value appreciation over time.
- Putting down a substantial initial payment.
What do you need to apply for a Home Equity Loan in Canada?
To apply, you must meet certain criteria, such as:
- Being a Canadian citizen or permanent resident
- Being at least 18 years old
- Having a mortgage that is less than 80% of your home's appraised value
You'll need to provide your lender with specific information, including personal details, proof of loan repayment capability, and home information.
How much equity will I have after one year?
After one year, how much equity you'll have left from paying off your mortgage depends on various factors. These include the size of your initial down payment, the amount and frequency of your payments, the ratio of interest to principal in your payments, any additional prepayments you've made, and whether the market value of your home has increased.
What happens if I have equity, but bad credit?
You can still qualify for a home equity loan with us, even with poor credit. We focus on the equity in your home rather than just your credit score. Since the loan is secured by your property, lenders are more confident in your ability to repay. Unlike traditional lenders who often require a credit score over 620, we offer flexible solutions to fit your financial situation.
What happens if I can't make my payments?
Failure to make payments puts your home at risk, as it serves as collateral for your home equity loan. In the event of repossession by your lender, your home will be sold, and the proceeds will go towards repaying your lender(s). Any surplus from the sale will be returned to you, if applicable.
Start Your Home Equity Loan Application Today
To see if you qualify for a home equity loan in Canada, fill out our online application today!