4 Ways to Unlock Your Home Equity

Zach Silverman | January 1, 2025

If you’ve owned your home for several years, chances are its value has increased significantly. One of the greatest advantages of homeownership is the ability to build equity, offering financial security and flexibility. With home values rising across Canada, many homeowners are sitting on untapped wealth—but are you making the most of your home equity?


What is Home Equity?


Home equity is the difference between your property's market value and the amount you still owe on your mortgage. For example, if your home is worth $650,000 and you owe $150,000, you have $500,000 in home equity.


Many homeowners overlook home equity as a financial resource when planning their long-term finances. However, accessing your home equity can provide opportunities to consolidate debt, invest, or cover unexpected expenses. At Silverman Mortgage, we specialize in helping homeowners explore the best mortgage solutions to unlock their home’s potential.




4 Ways to Access Home Equity


If you want to remain in your home while tapping into your equity, consider these four mortgage options:


1. Mortgage Refinance


Refinancing your mortgage allows you to borrow up to 80% of your home’s value, assuming you qualify. This option is ideal if you want to lower your interest rate, access additional funds, or consolidate debt.


For example, if your home is valued at $500,000 and you owe $300,000, a refinance at 80% would allow you to borrow up to $400,000. After paying off the initial $300,000 mortgage, you would have $100,000 (minus any refinancing costs) available to use as needed.


Even if your home is mortgage-free, you can still refinance to access cash based on your home’s equity.


2. Reverse Mortgage


A reverse mortgage is a great option for Canadian homeowners aged 55 and older who want to access tax-free cash without monthly mortgage payments. You maintain ownership of your home, and repayment is only required when you sell or move.


While you won’t be able to borrow up to 80% of your home’s value, the amount you qualify for depends on factors like your age and property value. Interest rates are slightly higher than traditional mortgages, but the ability to free up cash without immediate repayments offers financial flexibility.


3. Home Equity Line of Credit (HELOC)


A HELOC allows you to access your home’s equity while only paying interest on the amount you use. Unlike a mortgage, a HELOC doesn’t typically have a set repayment schedule, and you only make payments on the borrowed amount.


Qualifying for a HELOC can be challenging due to stricter lender criteria, but if you meet the requirements, it’s a flexible way to have funds available for when you need them.


4. Second Mortgage


If breaking your current mortgage is too costly, a second mortgage can provide access to funds before your existing mortgage renews.


A second mortgage has a set term and a fixed interest rate, typically higher than conventional financing. However, it allows you to borrow against your home equity while keeping your primary mortgage intact. You’ll need to make regular payments until the second mortgage is repaid.



Find the Best Home Equity Solution with Silverman Mortgage


Accessing your home equity can provide financial relief and new opportunities. Whether you're considering a refinance, HELOC, reverse mortgage, or second mortgage, our team at Silverman Mortgage is here to help.


Contact us today to explore the best mortgage solution tailored to your needs. Let’s unlock your home’s potential together!


RECENT POSTS

What You Need to Know About Mortgages and Parental Leave

By Zach Silverman • July 22, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.

Bank of Canada Holds Rate at 2.25% — July 15, 2026

By Zach Silverman • July 15, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The tone of today's announcement is notably more optimistic than previous months. Here's what's changed and what it means for you.

Need Funds Between Buying and Selling? Here’s How Deposit Loans & Bridge Financing Help

By Zach Silverman • July 8, 2026
You’ve outgrown your current home. It no longer fits your life, so moving makes sense. And you’re not interested in juggling two properties. Selling first and buying something new feels like the right move. Ideally, you want possession of the new home before leaving the old one. That overlap makes moving easier, reduces stress, and gives you time to paint, renovate, or settle in before the boxes arrive. But there’s a common challenge. What if the down payment for your next home is tied up in the equity of the one you’re selling? That’s where bridge financing comes in. How bridge financing works Bridge financing temporarily unlocks equity from your current home once it has a firm sale . It bridges the gap between selling your existing property and purchasing your next one, allowing you to use that equity toward your down payment. What about competitive markets? In a hot market, a strong offer often means a larger deposit . If you don’t have that cash sitting in your account, but you do have equity, a deposit loan can help you compete with confidence. The non-negotiable requirement To qualify for bridge financing or a deposit loan, your current home must have a firm, unconditional sale . No firm sale = no bridge or deposit loan. Lenders need certainty to calculate available equity and manage risk. Bottom line A firm sale is the key that unlocks bridge financing and deposit loans. If you’re planning a move and want to understand how these options could work for you, let’s talk. I’m always happy to walk you through your options and help you plan your next step with confidence.