How to Get Equity Out of Your Home Without Refinancing in 2025

Most homeowners think the only way to tap into their home’s equity is to refinance. But that’s not true - and in 2025, with interest rates still above 5%, refinancing isn’t always the smartest move. You don’t need to replace your mortgage to access thousands of dollars in equity. There are several proven ways to get cash out of your home without touching your current loan. Here’s how.

Use a Home Equity Line of Credit (HELOC)

A HELOC is like a credit card backed by your home. You’re approved for a maximum amount - say $100,000 - and you can borrow what you need, when you need it. You only pay interest on what you actually use. In Toronto, banks like RBC, TD, and Scotiabank still offer HELOCs with rates around 6.5% to 8%, depending on your credit and loan-to-value ratio.

Unlike refinancing, you keep your original mortgage. The HELOC sits as a second lien on your property. You’ll have a draw period (usually 10 years) where you pay interest only, then a repayment period where you pay both principal and interest. It’s flexible, low-cost for small draws, and doesn’t require a new mortgage application.

Best for: Homeowners who need cash for irregular expenses - like a roof repair, medical bill, or small renovation - and want to avoid locking in a new long-term rate.

Apply for a Home Equity Loan

If you need a lump sum and want predictable payments, a home equity loan is your best bet. It’s a second mortgage, but unlike a HELOC, you get the full amount upfront at a fixed interest rate. In Canada, these loans typically range from $10,000 to $150,000, with terms of 5 to 25 years.

For example, if you owe $200,000 on your home and it’s worth $600,000, you have $400,000 in equity. Most lenders will let you borrow up to 80% of your home’s value, minus your existing mortgage. That means you could access up to $280,000 in total - so $80,000 in equity cash if you already owe $200,000.

Interest rates are higher than your first mortgage, but lower than credit cards. You’ll have one fixed monthly payment, and the loan appears as a second lien on your title. No refinancing needed.

Best for: People who know exactly how much they need and want to lock in a rate - like funding a kitchen remodel or paying off high-interest debt.

Consider a Reverse Mortgage (If You’re 55+)

If you’re 55 or older and own your home outright or have a small mortgage, a reverse mortgage lets you convert part of your equity into cash without making monthly payments. In Canada, the only federally regulated reverse mortgage product is the Home Equity Conversion Mortgage (HECM), offered by companies like Equitable Bank and HomEquity Bank.

You don’t repay the loan until you sell the home, move out, or pass away. The lender pays you in a lump sum, monthly payments, or a line of credit. Interest accrues over time, and the loan balance grows. But you can’t owe more than the home’s value - thanks to Canada’s non-recourse protection.

For example, a 68-year-old homeowner in Mississauga with a $700,000 home might qualify for $300,000 in cash. That’s a big help for retirees who want to stay in their home but need extra income for healthcare or travel.

Best for: Seniors who want to stay in their home, have limited income, and don’t plan to leave the property to heirs.

Use a Personal Loan (If You Have Strong Credit)

It sounds counterintuitive - using a personal loan to access home equity - but if you have excellent credit (750+), you might qualify for a low-rate unsecured loan. In 2025, top-tier borrowers in Ontario are getting personal loans at 6.9% to 8.5% for terms up to 7 years.

Why consider this? Because it avoids putting your home at risk. No lien on your property. No risk of foreclosure. If you’re confident you can repay the loan and your home equity is high, this can be a safer, simpler route than a second mortgage.

For instance, if you need $40,000 for a basement renovation and your credit score is 780, you might get a 7-year loan at 7.2%. Your monthly payment would be about $615. Compare that to a HELOC at 7.5% with variable payments - the personal loan gives you certainty.

Best for: Creditworthy homeowners who want to avoid putting their home on the line and prefer the simplicity of an unsecured loan.

Lease Back Your Property (Sell and Rent Back)

This one’s less common but growing in popularity, especially in cities like Toronto and Vancouver. You sell your home to an investor or company - and then sign a lease to keep living there. You get the full equity value in cash upfront, and you stay in your home as a tenant.

Companies like Homewise and LiveSmart offer these arrangements. You’ll likely sell for 80% to 90% of market value, but you get a lump sum and avoid closing costs, realtor fees, and moving.

For example: You own a $750,000 home in Etobicoke. You sell it for $675,000, get that cash, and sign a 3-year lease paying $2,200/month. You keep your furniture, your address, and your routine. After three years, you might have the option to buy it back - but that’s not guaranteed.

Best for: Homeowners who need a large cash infusion quickly, don’t mind renting, and are okay with giving up ownership.

What to Avoid

Don’t fall for predatory offers. Some companies promise "equity access" with no credit check and no income proof. These are often scams. Always work with regulated lenders - banks, credit unions, or federally licensed reverse mortgage providers.

Also avoid taking out more than 80% of your home’s value. Going beyond that triggers mortgage insurance (CMHC), which adds cost and complexity. And never use equity to fund lifestyle spending - vacations, luxury cars, or gambling. Equity is for repairs, health, and security - not impulse.

Comparison: Equity Access Options in 2025

What’s the Best Option for You?

Ask yourself these three questions:

1. How much cash do you need? Small amounts? Go with a HELOC or personal loan. Large sum? Consider a home equity loan or reverse mortgage.
2. How long will you stay in your home? Planning to move in 3 years? Avoid reverse mortgages - they’re designed for long-term stays.
3. Can you handle monthly payments? If your income is tight, a reverse mortgage or sell-and-rent-back might be safer than adding debt.

If you’re under 55 and have steady income, a HELOC or home equity loan is usually the most cost-effective. If you’re retired and want to stay put, a reverse mortgage makes sense. If you just need $20,000 and have great credit, a personal loan might be the cleanest path.

Next Steps

Start by checking your home’s current value. Use the Canadian Real Estate Association’s (CREA) average price tracker for your neighborhood. Then, log into your mortgage lender’s portal to see your current balance and loan-to-value ratio.

Next, call your bank. Ask: "Can I open a HELOC or home equity loan without refinancing?" Most banks will give you a free pre-approval in under 24 hours.

If you’re 55 or older, contact HomEquity Bank for a reverse mortgage consultation. They’re the largest provider in Canada and offer free, no-obligation advice.

Don’t rush. Compare at least two options. The right choice depends on your age, income, goals, and how attached you are to your home. The goal isn’t just to get cash - it’s to get cash without putting your future at risk.