Loans Calculators · Canada
Home equity loan calculator.
Calculate monthly payments for a fixed-rate home equity loan (second mortgage). Compare home equity loans vs. HELOCs and see total interest paid.
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Monthly payment
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Home equity loans in Canada
A home equity loan (also called a second mortgage) lets you borrow a lump sum using your home equity as collateral. Unlike HELOCs, these loans have fixed rates and fixed payments.
How home equity loans work
- Lump sum: receive the full amount upfront.
- Fixed rate: interest rate locked for the entire term.
- Fixed payment: same payment every month.
- Closed loan: cannot re-borrow paid amounts.
- Term: typically 5–20 years.
Home equity loan vs HELOC
Home equity loans give you a lump sum with a fixed rate and fixed P+I payments — best for one-time expenses. HELOCs are revolving credit with variable rates and interest-only minimum payments — best for ongoing needs.
Common uses
- Major home renovations
- Debt consolidation
- Education expenses
- Business startup capital
- Large one-time purchases
Eligibility
At least 20% equity in your home, good credit (650+), stable verifiable income, and total debt payments under 42–44% of gross income.
Disclaimer
This calculator provides estimates. Actual rates, terms, and payments vary by lender and borrower qualifications. Your home is collateral — failure to repay could result in foreclosure. Consult with mortgage professionals before borrowing.