Equity Release Limit: What You Can Actually Borrow and When It Makes Sense

When you hear equity release limit, the maximum amount you can borrow against the value of your home. Also known as home equity access, it's not a one-size-fits-all number—it depends on your age, property value, lender rules, and even where you live in Canada. Most people think they can take out half their home’s value, but that’s rarely true. Lenders don’t just look at how much your house is worth—they look at how old you are, how much you still owe, and what type of product you’re applying for. A reverse mortgage, a loan for seniors that doesn’t require monthly payments. Also known as lifetime mortgage, it might let you access up to 55% of your home’s value if you’re 65 or older. But if you’re younger and going for a HELOC, a revolving line of credit secured by your home. Also known as home equity line of credit, it, you could get up to 80% of your home’s value minus your existing mortgage—but only if your credit score is solid and your income checks out.

The equity release limit isn’t just about numbers. It’s about risk. If you take out too much too soon, you might leave nothing for your kids, or struggle to cover future medical bills or home repairs. Lenders know this, so they build in safety margins. For example, if your home is worth $500,000 and you owe $200,000, you have $300,000 in equity. But a reverse mortgage might only give you $150,000 to $180,000, not the full $300,000. Why? Because they factor in interest compounding over time, your life expectancy, and the cost of servicing the loan later. A home equity loan, a lump-sum loan with fixed payments. Also known as second mortgage, it gives you more control—you pick the term, the rate, and how much you borrow—but you still need steady income to qualify. And if you’re over 60 and retired, that’s often the biggest hurdle.

There’s no magic formula, but there are clear patterns. People who get the best deals are those who understand their options before walking into a bank. They compare reverse mortgages, HELOCs, and home equity loans—not just on interest rates, but on how each affects their long-term financial safety. Some use equity release to pay off high-interest debt. Others use it to cover home upgrades or help family members. A few even use it to delay drawing from their RRSPs or pensions. The key is knowing your limit before you start. Too little, and you miss out. Too much, and you risk losing your home later. The posts below break down real cases, lender policies, and the hidden traps most people don’t see until it’s too late. You’ll find out exactly how much you can realistically unlock, what documents you need, and how to avoid the mistakes that cost people their security.