For many Canadians, the equity in their home is their single largest asset — and it can be a lifeline when money gets tight. Whether you are consolidating high-interest debt, paying off CRA tax arrears, or stopping a power of sale, an equity take out can provide the funds you need to stabilize your finances without selling your home.
This guide explains what an equity take out is, how it works in Canada, who qualifies, and how TurnedAway.ca helps homeowners access their equity safely, responsibly, and quickly — often with approvals in less than 24 hours for urgent cases.
What Is an Equity Take Out?
An equity take out is simply borrowing against the value you have built in your home. Your equity is the difference between your home’s current market value and the total of any mortgages, HELOCs, or other registered loans on title.
Example calculation:
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Home value: $700,000
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First mortgage: $420,000
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Existing HELOC: $20,000
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Total secured debt: $440,000
This leaves $260,000 in available equity. Most lenders allow borrowing up to 80% of the property value, which means a maximum of $560,000 in total secured debt. That means, in this example, you could potentially access $120,000 if you meet all underwriting requirements.
An equity take out is not an unsecured personal loan or line of credit. At TurnedAway.ca, all solutions are property-secured loans registered on title, which means you must own real estate in Canada to qualify.
How an Equity Take Out Works
The process is more structured than just getting a quick quote online. Every application is fully underwritten to protect you and match you with the right lender. Here is how the process usually works:
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Application – Complete the Online Application with details about your property, mortgage, income, and debts.
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Underwriting Review – Our team works seven days a week to review your application and confirm that you meet the 80% combined loan-to-value (LTV) cap.
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Appraisal – A professional appraisal confirms the current market value of your home.
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Title Search – We check for existing mortgages, liens, property tax arrears, or CRA writs.
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Offer Presentation – Because we are a licensed mortgage brokerage, we shop Canada’s largest pool of lenders — including banks, trust companies, credit unions, B-lenders, MICs, and private lenders — to secure the best rate and terms you qualify for.
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Legal and Funding – Once you select your solution, a lawyer handles the closing and funds are advanced to you.
Eligibility Criteria and the 80% LTV Rule
At TurnedAway.ca, we do not arrange loans above 80% of your home’s value. This includes all existing mortgages, HELOCs, and any new financing you are requesting.
Example:
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Home value: $500,000
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Maximum allowable secured debt: $400,000 (80%)
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If you owe $300,000 already, the maximum you could access would be $100,000.
There are no exceptions to this rule, but we will help you restructure your request if you are over the limit — for example, by doing a smaller advance or using a prepaid home equity loan to reduce monthly payments and improve cash flow.
Your income and credit are still reviewed, but they are not the only factors. We have lenders who approve files for self-employed borrowers, clients with collections, or those recovering from a consumer proposal. The focus is on the property, equity position, and a clear exit strategy.
Ways to Access Home Equity
There are several ways to complete an equity take out, and each has its own advantages.
Refinance for an Equity Take Out
This replaces your existing mortgage with a larger one and advances the difference in cash. It is a good option if you are close to renewal or if breaking your current term does not involve large penalties.
Learn more about refinancing on our Mortgage Refinancing page.
Second Mortgage for an Equity Take Out
A second mortgage is a separate mortgage registered behind your first. It is ideal when you have a competitive first-mortgage rate you do not want to break, or if you only need funds for a short period. Second mortgages often have 12-month terms with an option to refinance into a single mortgage later.
HELOC vs Home Equity Loan
A HELOC (home equity line of credit) is revolving credit with interest-only payments, while a home equity loan is a fixed-term, amortizing product. We compare both options in detail on our HELOC vs Home Equity Loan blog post.
Private Home Equity Loan
When banks say no, we turn to private lenders who focus primarily on equity and property value. These loans are typically short-term and designed to help you bridge a difficult period until you can qualify for traditional financing again. Learn more on our Private Mortgages page.
Costs, Fees, and Timelines
While we never quote rates in chat or articles, here are the cost categories you should expect:
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Appraisal fees
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Legal fees for registration and closing
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Lender and broker fees
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Title insurance and registration costs
Whenever possible, these costs are rolled into the mortgage so that your out-of-pocket expense is minimal. The only typical upfront cost is the appraisal, which can sometimes be subsidized in cases of extreme financial hardship.
Timelines:
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Standard files can often fund within 7 to 10 business days.
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Urgent files involving foreclosure, power of sale, or CRA enforcement can often be approved in under 24 hours and closed within a few days.
How to Calculate Available Equity
Here is a simple step-by-step calculation:
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Find your home’s current market value (use recent sales data or get an appraisal).
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Add up all registered mortgages, HELOCs, and secured debts.
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Subtract that total from your home value — that is your equity.
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Multiply your home value by 80% to find the maximum allowable secured debt.
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Subtract your current balances from the 80% cap — that is your maximum potential take out.
You can try this now with our Home Equity Calculator.
Special Situations Where an Equity Take Out Helps
Mortgage Arrears and Power of Sale
If you have received a Statement of Claim or Notice of Sale, we prioritize your file and work to get approval quickly to stop legal action. Visit our Stop Power of Sale solution page for a detailed breakdown.
CRA Liens and Property Tax Arrears
Revenue Canada can register a lien or writ against your home, and municipalities can add property tax arrears to your tax roll. We specialize in paying these out to clear title and prevent further enforcement. Learn more in our Revenue Canada Debt Solutions guide.
Debt Consolidation and Payment Relief
Many Canadians use an equity take out to consolidate high-interest debt into one manageable payment. If income is temporarily reduced, we can arrange a prepaid home equity loan to eliminate monthly payments for the term and give you breathing room. Visit our Debt Consolidation page to learn more.
Self-Employed or Income Disruption
If you are self-employed or in between jobs, we work with lenders that accept alternative documentation and focus on equity position rather than just income. Our goal is to build an exit strategy so you can return to a bank-rate mortgage as soon as possible.
Risks, Safeguards, and Responsible Borrowing
Equity take outs are powerful tools, but they must be used wisely. Over-borrowing can put your home at risk if you cannot keep up with payments. That is why TurnedAway.ca:
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Fully underwrites every file to ensure sustainability.
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Caps total borrowing at 80% LTV with no exceptions.
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Builds a plan to improve credit, increase cash flow, and refinance at lower cost.
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Provides education and guidance so you know exactly what to expect.
Broker vs Direct Lender: Why It Matters
When you go directly to one lender, you receive one offer — take it or leave it. When you work with a mortgage broker like TurnedAway.ca, we:
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Shop dozens of lenders to find the best match.
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Present multiple solutions so you can compare.
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Negotiate on your behalf to get favorable terms.
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Help you plan for the future so you are not stuck in high-interest debt longer than necessary.
Learn more about why brokers are often the better choice on our Private Mortgages page.
Step-by-Step: How to Start
Here is how to begin your equity take out with TurnedAway.ca:
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Complete the Online Application.
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Upload or prepare your mortgage statement, property tax statement, and any arrears notices.
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Our underwriting team will review your file (7 days a week) and contact you within hours.
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If urgent, we can often secure approval in under 24 hours.
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Choose your solution and sign documents electronically.
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Close with your lawyer and receive funds.
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Follow the exit strategy we develop to move back to a lower-rate mortgage as soon as possible.
Common Questions About Equity Take Out
How much equity can I take out of my home?
Up to 80% of your home’s value minus what you already owe on registered mortgages and HELOCs.
Can I do an equity take out with bad credit?
Yes, we focus on the property and equity position first, then find a lender that fits your situation.
Do I need a job to qualify?
Not always — we offer prepaid home equity loans and work with lenders who accept non-traditional income.
How fast can I get funds?
Standard files fund in days, but urgent cases can often be completed within a few business days.
What if I am already in foreclosure?
Apply immediately — we prioritize power-of-sale rescues and can often stop proceedings if we act quickly.
Conclusion: Safe, Responsible Access to Your Home’s Equity
An equity take out can be the bridge between financial stress and a fresh start — but it must be structured responsibly. At TurnedAway.ca, we:
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Cap borrowing at 80% of your home’s value.
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Fully underwrite every application.
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Shop multiple lenders to find the best terms available to you.
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Prioritize urgent cases and work seven days a week.
Take the first step today. Complete the Online Application, use our Home Equity Calculator, or Book a Call to discuss your options with a licensed mortgage professional.
