Current Home Equity Loan Rates in Ontario
Tired of searching for "home equity loan rates" only to be met with generic or confusing information?
You are not alone.
The financial industry often makes it frustratingly difficult to find a clear answer—especially if your situation isn't a straightforward one.This guide changes that.
We've compiled a transparent, no-fluff resource that cuts through the noise and gives you the real information you need about home equity loan rates. As a specialized mortgage brokerage, our job is to help homeowners across Ontario find solutions tailored to their unique financial story.
Ontario Market Rates
Rates updated Sep 24, 2025
Current Home Equity Loan Rates
Home Equity Loan
HELOCA Home Equity Loan gives you access to a lump sum of your home's equity without selling or refinancing your first mortgage.
Your home equity loan rate is based on a few key factors that are unique to private lenders:
- Property: Your property and its location must be marketable.
- Equity: The more equity you have and the lower your Loan-to-Value (LTV), the less risk for the lender.
- Income & Credit: While not always required, strong income and credit can help you qualify for better rates.
The Role of a Mortgage Broker
Navigating these different lenders and their varying qualification criteria on your own can be confusing. This is where a mortgage broker becomes an essential partner, to find the best rate for your specific situation—saving you time, money, and stress.
Get Your Personalized Rate
The single greatest benefit of working with a broker is access to the entire market.
While a bank can only offer you its own products, we can shop across a vast network of lenders to find the one that best suits your needs and offers the most competitive home equity loan rates. Our streamlined process is designed to give you a clear path to approval.
More solutions- Faster approvals
- Better rates
Your Hassle-Free Loan Approval
Backed by 2,000+ 5-star reviews, you can get a free online estimate, see your borrowing options, and review the best offer, all from the comfort of your home, supported by our award-winning team.
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Get a Free Online Estimate
Use our estimation tool to find out how much you can borrow with a home equity loan and what your estimated interest-only payments will be in less than 2 minutes. It's a quick and easy first step that gives you the numbers you need to start planning.
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Credit Summary Report
Our team will generate a digital credit summary report to give you a clear picture of your credit, debt, debt-to-income ratios, and available equity, and help you understand your borrowing options. This information is often invaluable to our clients and helps us match you with the right lenders.
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Offer to Finance
Once approved, you will receive a digital offer outlining all the details of your home equity loan. This includes the interest rate, monthly payment, and a clear breakdown of all fees. We ensure every detail is transparent, so there are no surprises on closing day.
What Determines Your Rate?
Your home equity loan rate is a reflection of a lender's risk assessment of your unique financial profile. Below is a list of key factors in the order of importance that home equity loan lenders evaluate to determine the rate they are willing to offer you.
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Your Loan-to-Value (LTV) Ratio
The Loan-to-Value (LTV) ratio is arguably the most critical factor. It is the percentage of your home's value that is borrowed. Lenders prefer a lower LTV because it means you have more equity, which reduces their risk.
How to calculate your LTV ratio?
Your LTV is calculated by dividing your total mortgage debt (including the new home equity loan) by your home’s appraised value. For example, if your home is worth $1,000,000 and your existing mortgage is $400,000, and you want to borrow an additional $200,000, your new LTV would be 60%.
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Your Property Type and Location
Not all properties are viewed equally by lenders. Urban, single-family homes in major markets like the GTA are generally considered lower-risk because they are highly marketable and easy to sell. Unique or rural properties, on the other hand, are seen as higher risk due to a smaller buyer pool. A broker can help you find a lender who specializes in your specific property type and location.
Lower Risk Properties:
- Single-family homes in urban areas
- Properties in major markets (Toronto, Mississauga, Oakville, etc.)
- Standard residential properties
- Properties with good resale potential
Higher Risk Properties:
- Rural or remote properties
- Unique or specialized properties
- Properties in smaller markets
- Properties with limited buyer appeal
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Your Income and Employment
Lenders need to be confident in your ability to make your monthly payments. For salaried employees, this is a straightforward process of providing pay stubs and T4s. However, for a growing number of self-employed individuals, proving income can be a challenge due to tax write-offs. A-lenders often decline these applications. B-lenders and private lenders, however, offer a "common sense" approach.
Hourly or Salaried
- Recent pay stubs and T4s
Self-Employed
- Bank statements
- Notice of Assessment
Process: Simple Verification
Overextended or No Income
- Marketable property
- Enough equity (lower LTV)
- Exit strategy
Solution: Private Lenders
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Your Credit Score and History
While home equity loans are secured by your property, your credit history still matters. Your credit score and report demonstrate your past ability to manage debt. A higher score can secure you a better rate. However, unlike traditional banks, private lenders are more flexible. They specialize in helping borrowers with bruised credit by consolidating debt, which helps them rebuild their credit score and eventually qualify for a lower-rate mortgage with a traditional lender.
Your Home Equity Loan Closing Costs
When you take out a home equity loan, the interest rate is just one part of the total cost. Much like a real estate transaction, you will have to budget for closing costs.
Out-of-Pocket Costs
These are the costs you will pay before your home equity loan closes.
Appraisal Fee: A home equity loan is secured by your property, so a professional appraisal is mandatory to determine its current market value. An appraisal typically costs around $450.
Costs Included in the Loan
In most cases, these costs can be built into your home equity loan, so you do not have to pay them out of pocket.
Lender and Brokerage Fees: Lenders and brokerages that specialize in alternative and private financing often charge a one-time fee, typically ranging from 2% to 4% of the loan amount. These fees compensate the lender and the broker for the increased risk and specialized expertise required to underwrite your specific deal.
Legal Fees: As the loan is registered as a charge against your property's title, you will need a lawyer to handle the transaction on your behalf, and the fees will depend on the complexity of the deal.
Closing Costs Example
- Home Equity Loan Amount$100,000
- Appraisal$450
- Lender Fees$3,000
- Legal Fees$1,950
Net Cash$94,600
Get Approved Hassle-Free
Using Your Home Equity to Improve Your Life
A home equity loan unlocks the equity in your home without selling or refinancing, and can provide significant relief and opportunities. Here are some common use-cases:
Debt Consolidation
A homeowner with a $50,000 credit card balance is likely paying a minimum of $1,250 a month with an interest rate of 19%. By consolidating that same debt into a home equity loan, their monthly payment could be reduced to as little as $450 with an interest rate at 10.99%, saving the same homeowner close to $9,000 per year.
Home Renovations
If you have a one-time renovation project with a defined budget, a home equity loan can be an ideal financing tool. It provides a lump sum of cash with a fixed payment, allowing you to lock in your costs from the beginning without worrying about fluctuating interest rates.
Investment Opportunities
Savvy investors can use a home equity loan to access capital for a down payment on a second property, to finance the purchase of a rental property, or to fund a new business venture. It provides a low-cost source of capital to build future wealth.
Major Expenses
A home equity loan can be a powerful financial lifeline for planned or unexpected large expenses. Whether it’s to pay for a child’s post-secondary education or to cover unforeseen medical costs, it offers a secure and low-interest way to access significant funds.
Why Choose 360Lending?
Finding the best home equity loan rates requires professional guidance to simplify the process and ensure you get the right solution and pricing. At 360Lending, our cutting-edge digital tools and expert brokers provide our clients with unparalleled access to the best options.
Digital and Hassle-Free
Our process is designed for a seamless, digital-first experience. From using our online calculator to get an instant estimate to receiving your digital credit summary and final offer, we've removed the stress and paperwork from the traditional application process. Our platform provides you with a clear, step-by-step path to approval, all from the comfort of your home.
Supported by Human Expertise
While our process is digital, it's not automated. Our team of expert brokers provides exceptional customer service and is here to support you at every stage. We'll negotiate on your behalf with lenders to secure the most favourable terms and rates. Our job is to be your advocate, ensuring your financial story is presented to the right lender to get you the best possible outcome.
Access to the Whole Market
We don't work for a single bank. We work for you. We have established relationships with a vast network of over 100 lenders, including prime banks, B-lenders, and a curated list of reputable private lenders. This allows us to shop for the one that best suits your needs, not just the one product a single institution offers.
Over 2,000 5-Star Reviews
360Lending empowers families with tools for better decisions and prioritizes client care for success.
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