The amount you may be able to borrow against your home equity depends on factors such as your home’s current value, existing mortgage balance, lender requirements, credit profile, income, and the loan-to-value or combined loan-to-value limits applicable to the product. Your equity is generally the difference between your home’s current value and what you still owe on mortgages secured by the property. However, having a certain amount of equity does not mean you can automatically borrow all of it. Lenders generally leave a portion of the home’s value unborrowed as a cushion and evaluate your ability to repay the debt. Before applying, estimate your current equity and compare it with the lender’s requirements. You can also review our information on home equity refinancing to understand how accessing equity can differ from replacing your existing mortgage.
