If you’re a homeowner in Ontario looking for extra cash to pay off debt, renovate, or cover big expenses, a Home Equity Loan might be just what you need. Applying online makes this process simpler, faster, and more convenient than ever.

In this article, we’ll explain what a Home Equity Loan is, why it could be a good fit for you, how interest rates work, and how to apply for a home equity loan online in Ontario.

Benefits of Getting a Home Equity Loan

Fixed interest rates and payments: You know exactly how much you’ll pay each month, which helps with budgeting.

Lower rates than unsecured loans: Because your loan is secured by your home, interest rates are generally lower than credit cards or personal loans.

Lump sum access: Perfect for projects or expenses that need a large upfront payment, like renovations or consolidating debt.

Tax advantages: Interest paid may be tax-deductible if used for home improvements (check with a tax advisor).

Improves cash flow: By replacing high-interest debt, you can reduce monthly payments.

Current Home Equity Loan Interest Rates in Ontario

Interest rates depend on your property location, loan-to-value ratio (how much equity you have), credit, and income.

As of June 2025:

Home equity loan interest rates currently start at 6.99% and can go up to 13.99% depending on your situation.

The majority of home equity loan lenders offer fixed-rate loans which give payment stability.

Working with a mortgage broker can help you find competitive rates tailored to your situation.

Learn more about home equity loans in Ontario

Check your eligibility in under 60 secs.

See How Much I Qualify For

Using a Home Equity Loan to Pay Off Debt

If you have high-interest credit card debt or personal loans, consolidating with a home equity loan can save you money:

For example:

$50,000 in credit card debt costing over $1,250 per month in minimum payments could be replaced by a home equity loan at 10.99%, cutting payments to roughly $458 per month, saving you about $792 per month or $9,504 per year.

This frees up cash and helps you pay off debt faster.

Apply for a Home Equity Loan Online

Applying for a home equity loan might seem complicated at first, but with the right guidance, it becomes straightforward. At 360Lending, we help you every step of the way to make sure you understand the process and get the best deal possible.

1) Talk to an Experienced Broker

Your first step is to speak with one of our licensed mortgage brokers. They will take the time to learn about your financial situation, your goals for the loan, and explain how a home equity loan works. This conversation helps clarify what you need, and the broker will answer any questions to make sure you feel comfortable moving forward.

2) Review Your Finances

Next, we’ll create a digital credit summary tailored to you. This includes:

Your credit score and credit history

Debt-to-income ratios, which show how much you spend on housing and other debts compared to your income

An estimate of how much you could borrow based on your home’s equity and financial profile

Potential monthly savings if you plan to consolidate high-interest debt

This detailed review gives you a clear picture of your borrowing power and what kind of loan terms to expect.

3) Gather Documents & Order Appraisal

Once you’re ready to proceed, your broker will guide you in collecting the necessary documents, such as proof of income (pay stubs or tax returns), government-issued ID, and mortgage statements.

Your broker will also arrange for a professional home appraisal. This appraisal confirms your property’s current market value, which is crucial because lenders base your borrowing limit on how much equity you have in your home.

4) Submit Your Application and Shop for Rates

With your documents and appraisal in hand, your broker will submit your application to multiple lenders. They’ll negotiate on your behalf to find the most competitive interest rates and loan terms that fit your needs.

5) Sign Loan Documents and Close

After receiving loan offers, your broker will help you compare them and choose the best option. Once you decide, you’ll review and sign the loan documents electronically or in person.

Finally, the loan will be finalized through your lawyer, who ensures everything is in order and registers the loan against your property. Then, the funds will be released to you, ready to use for your goals.

Why an Appraisal Is Needed

Lenders want to be sure about your home’s current value since it backs your loan. A professional appraiser compares recent sales of similar homes to give a fair market value.

Appraisal costs typically run around $450 but vary by location and property size. Your broker will help coordinate this.

Apply for a Home Equity Loan in Ontario Canada

Applying for a Home Equity Loan online in Ontario is an easy and effective way to access your home’s equity for important expenses or debt consolidation.

With the support of an experienced mortgage broker like 360Lending, you can find competitive rates, understand the process, and get the funds you need quickly and securely.

If you’re ready to explore your options or get started, reach out to 360Lending today.

Get Personalized Advice

with an Award-Winning Mortgage Broker

4.9 from 812 reviews

Schedule My Call