Home equity calculator
Easily Calculate Your Home Equity in Canada
Understanding your home’s equity is essential for financial planning, whether you’re looking to refinance, secure a home equity line of credit (HELOC), or fund major expenses. Our Home Equity Calculator helps you determine the available equity in your property, giving you insights into borrowing potential and financial options.
Home Equity
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Key Features of Our Home Equity Calculator:
- Accurate Home Equity Estimation: Determine your available home equity instantly.
- HELOC Eligibility Calculation: Find out if you qualify for a home equity line of credit calculator.
- Loan-to-Value (LTV) Assessment: See how much equity you can borrow based on LTV limits.
- Home Equity Percentage Display: View your equity as a percentage of your home’s value.
How to Use the Home Equity Calculator:
- Enter Your Home’s Current Market Value: Use an estimated or appraised value.
- Input Your Remaining Mortgage Balance: The amount still owed on your mortgage.
- Calculate: Instantly see your available home equity and borrowing potential.
Understanding Home Equity in Canada
What is Home Equity?
Home equity is the difference between your home’s market value and your remaining mortgage balance. As you pay down your mortgage and property values appreciate, your equity increases.
How Do I Calculate Home Equity?
If you’re wondering how to calculate home equity, the formula is:
For example, if your home is worth $600,000 and your remaining mortgage balance is $250,000:
- Home Equity = $600,000 – $250,000 = $350,000
Use our home equity home loan calculator to determine your exact figures.
Home Equity Loan and Borrowing Limits
Loan-to-Value (LTV) Ratio
Most lenders in Canada allow homeowners to borrow up to 80% of their home’s value through refinancing.
For a $600,000 home with a remaining mortgage of $250,000:
Maximum Borrowable Amount = ($600,000 × 80%) – $250,000 = $230,000
HELOC (Home Equity Line of Credit) Eligibility
A HELOC allows you to borrow up to 65% of your home’s value while maintaining at least 20% equity.
For example:
HELOC Limit = ($600,000 × 65%) – $250,000 = $140,000
Use our home equity line of credit calculator to explore your options.
Ways to Use Your Home Equity
- Home Renovations: Fund upgrades to increase property value.
- Debt Consolidation: Pay off high-interest loans.
- Education & Investments: Finance education or diversify investments.
- Emergency Expenses: Access funds in financial emergencies.
Increasing Your Home Equity
- Make Extra Mortgage Payments: Reduce your loan balance faster.
- Increase Property Value: Renovate or upgrade your home.
- Choose a Shorter Amortization Period: Pay off your mortgage quicker.
FAQs on Home Equity
How to calculate equity in your home?
Use our Home Equity Calculator to determine how much home equity you have available.
How do you calculate home equity for a HELOC?
Lenders allow up to 65% of home value for HELOCs while keeping at least 20% equity in the property.
Can I use home equity for a down payment on another property?
Yes, many homeowners use a home equity loan or HELOC to fund real estate investments.
What’s the difference between a home equity loan and a HELOC?
A home equity loan provides a lump sum, while a HELOC is a revolving line of credit that can be drawn upon as needed.
Is borrowing against home equity a good idea?
It depends on your financial goals. Consult Pegasus Mortgage Lending for expert advice.
Make Smart Use of Your Home Equity
Understanding and leveraging home equity can unlock financial opportunities. Use our Home Equity Calculator to determine your available equity and explore your borrowing options.
Get Expert Home Equity Advice with Pegasus Mortgage Lending
Maximize your financial potential with Pegasus Mortgage Lending. Use our Home Equity Calculator today to assess your borrowing power and plan for the future.
