Looking for a Home Equity Line of Credit in Ontario?

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We help homeowners get the lowest rates for home equity loans, home equity lines of credit, refinancing, and other mortgage products.

👉 Click here to talk to us about getting a HELOC.

A Home Equity Line of Credit (HELOC) can be one of the most flexible ways for homeowners in Ontario to access the value of their home. Whether you want to pay off high-interest debt, renovate your home, or simply have access to emergency funds, a HELOC lets you borrow against your home equity at a much lower interest rate than most other loans.

But how do you actually qualify for a HELOC in Ontario? The process is different from applying for a regular loan, and each lender has slightly different rules.

Basic Requirements to Get a HELOC in Ontario

A HELOC is considered a secured loan because it uses your home as collateral. That makes it less risky for the lender, but they will still check a few important things before approving you.

Most lenders in Ontario will look at five main factors:

Your property type and location

The amount of equity you have in your home

Your credit score

Your income and ability to repay

Your overall debt load (also known as your debt service ratios)

The more equity you have and the stronger your credit and income are, the easier it will be to get approved. Traditional banks, credit unions, and even some private lenders offer HELOCs, but the requirements can vary.

It’s also important to know that a HELOC is not a lump-sum loan. It works like a credit card with a borrowing limit, and you can draw funds as needed. You only pay interest on the amount you borrow, not on the full limit.

Minimum Credit Score for HELOCs in Ontario

One of the most important things lenders will check is your credit score.

In Ontario, major banks require a minimum credit score of 680 or higher to qualify for a HELOC. B lenders may have a lower minimum credit score of 550, but you may face higher interest rates or stricter conditions. HELOCs from private lenders may still be an option, but expect to pay slightly higher closing costs.

Your credit score gives lenders an idea of how reliably you’ve handled debt in the past. It is based on things like:

Your payment history

How much debt you carry relative to your available credit

How long you’ve had credit accounts

Your credit mix (credit cards, loans, etc.)

Recent credit applications

If you’re planning to apply for a HELOC, it’s a good idea to check your credit report first and correct any mistakes. A higher score can mean a better rate and higher borrowing limit.

How Much Equity Do You Need to Get a HELOC?

Equity is the difference between the current market value of your home and how much you still owe on your mortgage. The more equity you have, the more you can potentially borrow.

In Ontario, most lenders will let you borrow up to 65% to 80% of the appraised value of your home when combining your mortgage and HELOC. The exact limit depends on the lender and whether the HELOC is standalone or combined with a mortgage. You can also try our HELOC calculator for an estimate.

Example:

If your home is worth $800,000 and your remaining mortgage balance is $400,000:

Maximum borrowing limit = 80% of $800,000 = $640,000

Existing mortgage = $400,000

Available HELOC limit = $640,000 - $400,000 = $240,000

You must keep enough equity to satisfy lender requirements.

The home must be in good condition and marketable (urban, detached homes are preferred by lenders over rural or specialized properties).

An appraisal will be required to confirm your home’s market value as part of the application process.

Income Verification to Get a HELOC in Ontario

Yes, almost every lender will require proof of income to approve a HELOC. Lenders want to make sure you can afford to repay any money you borrow, even though your home is used as collateral.

Most banks and credit unions will ask for:

Recent pay stubs

T4 slips or tax returns

A letter of employment confirming your position and salary

Bank statements to verify direct deposits

If you’re retired, pension income or investment income documents may be requested. If you rely on rental income, you’ll need to show leases and bank deposits.

The stronger and more consistent your income, the easier it is to qualify. If your income is unstable or hard to document, it can be more difficult to get approved through traditional lenders, but private lenders may still consider your application.

Documents Required for a HELOC in Ontario

Applying for a HELOC involves paperwork, but an experienced mortgage broker can help guide you through it. In general, you should expect to provide:

A completed application form

Identification (driver’s licence, passport)

Proof of income (pay stubs, tax returns, employment letter)

Current mortgage statement

Recent property tax bill

Home insurance policy

Possibly a property appraisal

Having these documents ready in advance can speed up the process. Lenders use this information to assess your ability to repay and confirm the property value they are lending against.

Qualifying for a HELOC if You're Self Employed

Yes, self-employed Canadians can qualify for a HELOC, but the documentation requirements are often more demanding. Lenders see self-employed income as less predictable, so they require extra proof that your business is stable and can generate consistent income to cover payments.

If you are self-employed, you will likely need to provide:

Business bank statements for the past 12 months

Business expenses for the past 12 months

3 to 4 invoices to match with income deposits on your bank statements

It helps if you have been running your business for several years and can show a track record of steady income.

Traditional lenders (banks and credit unions) will still review your application, but private lenders may be more understanding of self-employment variability. An experienced mortgage broker can help guide self-employed applicants through the process and match them with a lender that works with business owners.

How to Qualify for a HELOC in Ontario?

A HELOC is a powerful and flexible tool for Ontario homeowners to tap into the equity they’ve built in their home. While the qualification process is stricter than many people expect, understanding the key requirements can help you prepare:

Strong credit (typically 680+)

Adequate home equity (up to 65%–80% LTV)

Stable, provable income

A clean debt profile and good payment history

If you’re self-employed or considering using a rental property as collateral, expect to provide extra documentation and possibly work with alternative lenders.

The process can seem overwhelming, but working with a reputable mortgage broker is the best way to navigate the options. A broker will save you time, help you avoid unnecessary roadblocks, and connect you with lenders that fit your unique financial profile.

Whether you’re planning home renovations, consolidating debt, or simply want access to low-interest credit, a HELOC might be the right solution for you—if you meet the qualifications.