Key takeaways
- You receive one lump sum and repay principal and interest.
- Prime lenders cap total borrowing at 80% of value; private lenders may go to 85%.
- Compare with a HELOC if you need money over time rather than all at once.
What is a home equity loan?
A loan secured by your home for a fixed amount and term. Unlike a HELOC, you can't re-borrow what you repay.
Home equity loan vs HELOC
| Home equity loan | HELOC | |
|---|---|---|
| Money | Lump sum | Draw as needed |
| Payments | Fixed | Interest-only possible |
| Rate | Fixed or variable | Variable |
| Best for | One-time cost | Ongoing needs |
How much can I borrow?
Typically up to 80% of value minus your mortgage with a prime lender.
Frequently asked questions
How fast can I get a home equity loan?
Private lenders can fund in days; banks usually take two to four weeks.
Does a home equity loan affect my first mortgage?
Not if it's a second mortgage; your first stays as is.
MBWritten by the MortgageBids.ca editorial team. Last updated October 7, 2026. General information only; your lender confirms terms for your file.
Sources
- FCAC: Home equity lines of credit (checked October 7, 2026)
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