Equity Strategy
Home Equity and Debt Consolidation
Explore equity access and debt consolidation with the full borrowing costs in view.
Who it helps
Homeowners considering equity access or debt consolidation.
Understand the commitment behind using your equity
Home equity is the difference between the home’s value and the borrowing secured against it. It is not the same as cash available to spend: a lender still needs to assess the property and application.
Debt consolidation deserves a repayment plan
Combining debts may simplify payments, but it does not erase what you owe. Compare fees, the new repayment period and total interest. When borrowing is secured against your home, missed payments can put the property at risk.
Questions to bring to the discussion
- What is the borrowing for, and is it a one-time cost or an ongoing shortfall?
- What are the balances, rates and payments on the debts being considered?
- How would the new payment fit your household budget, including a change in income?
Ask how a mortgage refinance, home equity loan or line of credit would differ in your situation, including repayment requirements and fees. Availability depends on the lender and application.
If you do not own a home
Equity borrowing is not a route for someone without home equity. If your goal is to prepare for a first mortgage, see first-time buyer guidance or ask about mortgage readiness. You can also read FCAC’s credit guidance.
For independent information on the risks and product types, see borrowing against home equity.
How we help
A plan built around your goals
See the whole debt picture
Review current balances and costs alongside the reason for borrowing.
Understand the security
Consider what it means to use the home as security before moving other debts into it.
Plan for repayment
Look at the payment, repayment period and ability to manage future expenses.
Process
Your next steps
1
Describe your goal
Tell us what you want to fund or change and the questions you have.
2
Review the existing commitments
Prepare mortgage and debt summaries for a secure discussion.
3
Compare the options
Consider costs, conditions and risks before deciding whether additional borrowing is suitable.
Relevant team members
Talk with the team
Mortgage Agent Level 2
Team Lead
Rasha Ingratta
Rasha supports mortgage planning and financing decisions as part of the ShopMortgages.ca team.
View profileSupport topics
What else to consider
- Debt consolidation
- Improving monthly cash flow
- Equity takeout
FAQ
Common questions
Will consolidation always save money?
No. Fees and a longer repayment period can offset a lower rate. Compare total repayment and consider whether new borrowing on the cleared accounts would leave you with more debt.
Is my available equity the amount I can borrow?
No. The lender’s assessment, existing secured debts and product limits affect the amount. A property value estimate alone is not a lending approval.
Will this repair my credit?
No credit result is guaranteed. A borrowing change does not remove past credit history. If keeping up with payments is difficult, raise that concern before taking on another secured commitment.
Start the conversation
Tell us about your mortgage goals
Tell us your question and how to reach you. Please leave account numbers and sensitive documents out of this form.