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How much equity can I actually borrow against my home?
Answered by Rajiv Verma, Mortgage Broker · Reviewed 13 August 2026 · About a 4 minute read
The direct answer
Most lenders will let you borrow up to about 80% of your home’s value in total — that’s your existing mortgage plus anything new, combined. If your home is worth $900,000 and you owe $500,000, that’s roughly $220,000 of room before fees. That’s a ceiling, not a promise. What you actually get depends on your situation and what you qualify for.
THE SHORT VERSION
- The 80% is combined — first mortgage plus the new borrowing, not 80% on top of what you already owe
- It applies at A lenders, B lenders, and private lenders alike
- The number a calculator gives you is the maximum available, not the amount approved
- Fees come out of it, so the cash you receive is less than the room you have
- Qualifying still matters — equity opens the door, it doesn’t walk you through it
How the maths actually works
Take the value of your home and multiply by 80%. Subtract what you still owe on your first mortgage. What’s left is the room you have to work with.
Home value $900,000 × 80% = $720,000
Less the $500,000 first mortgage = $220,000 of room
That $220,000 is before any fees — legal, appraisal, lender or broker — so the amount that actually reaches your bank account is less.
Why 80%, and why it’s a ceiling rather than a target
Lenders hold back the last 20% as protection. If values fall or a property has to be sold, that margin is what stops the loan going underwater.
The important word is ceiling. Having room available and being approved for it are two different things, and this is where most people get caught out. Two homeowners with identical equity can get very different answers, because the lender is also looking at income, credit, the property itself, and whether the plan makes sense.
Equity gets you in the room. It doesn’t finish the conversation.
Does anyone lend above 80%?
Right now, generally no — and that’s true across the board. Most private lenders and mortgage investment corporations are lending to 80%, not beyond it.
That hasn’t always been the case. A few years ago, when the market was rising, some lenders — including certain MICs — would go to 80% as a bundled arrangement on a purchase. That came at a higher interest rate, and it reflected a different market.
And I’ll be straight about my own position: even where a lender might stretch, I don’t place files above 80%. Two reasons. Suitability — the further you borrow up the value, the less margin you have if anything moves. And current market conditions, which don’t justify the risk of sitting at the very top of the value.
If someone is offering you more than 80%, that’s worth understanding properly before you accept it.
What decides how much of that room you actually get
| What the lender looks at | Why it changes the answer |
|---|---|
| Income and how it’s documented | Not the amount — whether it can be verified the way that lender requires |
| Credit history | Affects both the amount and the cost |
| The property | Type, condition, location and marketability all matter |
| Your total debts | Existing payments reduce what you can carry |
| Purpose of the funds | A clear, sensible use strengthens the file |
| Exit strategy | Especially on short-term borrowing — where does this end? |
An Ontario example
A Brampton homeowner has a house worth around $900,000 with $500,000 remaining on the first mortgage.
| 80% of value | $720,000 |
| Less first mortgage | –$500,000 |
| Room available | $220,000 |
| Less fees and costs | varies by lender and structure |
| Cash actually received | Less than $220,000 |
Illustrative only. Every file is reviewed individually and figures vary.
When borrowing the maximum is the wrong move
Just because the room exists doesn’t mean you should use it.
When the payment doesn’t work. More borrowing means a higher payment. If the new number is tight today, it won’t be easier in a year.
When it strips equity without improving your position. Borrowing to consolidate debt can genuinely help — if the structure is better and the debt doesn’t rebuild. Borrowing to paper over a cash-flow problem usually delays it.
When you’ll want to sell or refinance soon. Less equity means less flexibility, and fewer options if the market moves.
When there’s no plan for what happens next. Short-term borrowing needs an exit — how you move to better terms, and when.
Sometimes the honest answer is to take less than you’re offered, or nothing at all. If that’s your situation, I’ll tell you.
What to check before you decide
- A realistic view of your home’s value — not the neighbour’s asking price
- Your exact current mortgage balance
- Whether breaking your first mortgage carries a penalty
- The total cost — rate, fees, legal, appraisal
- What the new payment does to your monthly position
- What the plan is 12, 24 and 36 months from now
What to do next
Send me your numbers — value, balance, and what you’re trying to do — and I’ll tell you what’s realistic, including if the answer is that you shouldn’t.
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Answered by Rajiv Verma, Mortgage Broker · Mortgage Architects — FSRA Brokerage Licence #12728 · Licensed in Ontario · Office 289.505.0631 · Direct 647.291.7116
General information about Ontario mortgages — not financial, legal or mortgage advice. Options depend on income, credit, equity, property and each lender’s guidelines. Every file is reviewed individually. Figures shown are illustrative.