How do I start the equity mortgage process?

The first step is a consultation to review your equity position, property details, and goals. From there, a tailored financing strategy can be created.

Equity Mortgage

Talk to an Equity Mortgage Broker

Get Approved For An Equity Mortgage

The right mortgage, the right lender, the right strategy.

How an Equity Mortgage Can Open New Financial Opportunities?

An Equity Mortgage (also known as a stated income mortgage) is designed for borrowers who have strong assets or equity but may not fit traditional lending guidelines. Instead of relying solely on income verification, lenders focus on the property’s value and overall marketability. This makes it an ideal solution for self-employed individuals, business owners, and investors seeking to purchase or refinance a property with a substantial down payment or an established equity position.

Your qualification is based primarily on the strength of your property rather than your income or credit history. The more equity you have, the stronger your application will be—typically, a minimum of 20 percent equity is required. In many cases, a larger down payment can further improve your lending options and help you access more competitive rates and terms.

At Sunlite Mortgage, we understand that not every borrower fits the same financial profile. That’s why our mortgage specialists partner with Canada’s leading banks, credit unions, and alternative lenders to find a financing solution that aligns with your goals and reflects the true value of your property and investment potential.

Ready to see how far your equity can take you? Talk to a Sunlite Mortgage equity lending mortgage agent.

What Is an Equity Mortgage?

An Equity Mortgage is a loan secured by your home’s value or by the size of your down payment. While a traditional refinance or purchase relies mostly on income verification and credit scoring, equity mortgages allow approval to hinge on the strength of your equity.

This makes them especially valuable for:

Self-employed Canadians who show limited taxable income.
Newcomers to Canada with capital but no Canadian credit history.
Investors expanding into rental or secondary properties.
Homeowners who want to consolidate debt or fund major projects.

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Raj's Equity Mortgage Client Story

We worked with Raj, a self-employed consultant, to create a plan when he wanted to purchase a second property. His taxable income on paper looked modest due to business deductions, and his bank declined his application. But Raj had more than 50% equity in his existing home. By positioning that equity as security, we found a lender who approved his purchase mortgage. Instead of being limited by traditional rules, he leveraged the wealth he had already built — and today he owns two properties that fit his long-term financial strategy.

Stories like Raj’s happen often — and we’ll show you how to create your own.

Who Qualifies for an Equity Mortgage?

To access this kind of financing, lenders generally require:

Minimum 20% equity or down payment — The more you have (25–35%+), the broader and more competitive your options.
Marketable property — Appraised by a certified professional.
Stable credit behaviour — Good credit helps, but equity is the main factor.
Clear ownership — Title must be free of disputes or undisclosed liens.

Equity mortgages are especially useful if you’re:

A self-employed or business owner with strong assets but limited income on paper.
A newcomer with savings to invest but little credit history.
An investor building a portfolio.
A homeowner using equity to consolidate debts or access liquidity.

How Does an Equity Mortgage Work?

Appraisal — A certified appraiser determines your property’s fair market value.
Equity calculation — Lenders typically allow up to 80% of that value to be financed.
Qualification — Approval focuses on your equity and property, not just income.
Funding — Proceeds are released as a lump sum (or structured solution if needed).

Curious about your potential? Use our Maximum Mortgage Calculator to estimate what your equity could unlock.

What Options Do You have for An Equity Mortgage?

Banks and Credit Unions

These institutions offer structured terms but are selective and only provide their own products, regardless of whether it’s your best option.

Sunlite Mortgage Brokers

We work with a vast network, including lenders beyond banks, credit unions, trust companies, and regulated private lenders. We select the option that provides you with the best terms and flexibility for your situation.

Regulated Alternative Lenders

For clients with non-traditional income or unique financial situations, regulated alternative lenders can offer equity-based approvals that accurately reflect your actual financial situation.
We’ll help you compare these pathways and choose the one that fits your goals.

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Benefits of an Equity Mortgage

Flexible qualification beyond strict income rules.
Stronger options with higher equity (20% minimum, more is better).
Debt consolidation at lower rates than credit cards or personal loans.
Investment property and second home financing opportunities.
Access to alternative and private lenders when banks say no.

How Sunlite Mortgage Helps

At Sunlite Mortgage, we don’t just process applications — we design strategies. With equity mortgages, our brokers:

Partner with 65+ lenders, from banks to alternative finance companies.
Negotiate for terms that balance rate, flexibility, and long-term planning.
Tailor your approval path to your equity position and financial goals.
Guide you end-to-end, from appraisal to legal close.

Start your equity mortgage journey today: Get Pre-Approved Online and let Sunlite Mortgage help put your equity to work.

Frequently Asked Questions

1. What is the minimum equity required for an equity mortgage?

Typically, at least 20%. With 25–35% or more, your options and rates improve significantly.

2. Is an equity mortgage the same as refinancing?

Not exactly. Refinancing typically requires a strong income and good credit. An equity mortgage focuses on the property’s value and your capital contribution.

3. Can I use an equity mortgage for a spousal buyout?

Not if you’re relying on just 5% equity. That falls under a separate insured program. Equity mortgages typically require a 20% equity stake or higher.

4. Can newcomers to Canada qualify for an equity mortgage?

Yes — if they have strong savings for a down payment, even with a limited Canadian credit history.

5. Can I qualify if I’m self-employed with modest income on paper?

Yes — if they have strong savings for a down payment, even with a limited Canadian credit history.

6. How much can I borrow with an equity mortgage?

Most lenders allow up to 80% of your property’s appraised value, depending on the type and location.

7. Are interest rates higher for equity mortgages?

They can be slightly higher, especially through alternative lenders, but strong equity often secures competitive terms.

8. What can I use equity mortgage funds for?

Common uses include debt consolidation, investment property purchases, renovations, or liquidity for business purposes.

9. Does my credit score still matter?

Yes, but equity is the primary factor. A stronger credit profile always improves your choices.

10. How do I start the process?

It begins with an appraisal and a consultation. [Apply Online Now], and we’ll map out your borrowing potential.

Let’s Secure Your Equity Mortgage Approval

If you’ve built equity or saved for a large down payment, you deserve to have it work for you. An Equity Mortgage with Sunlite Mortgage can help you get approved where traditional income-focused mortgages may fall short.

Contact a Sunlite Mortgage Agent today to explore your options — and turn your equity into the key that opens doors.

Get an Equity Mortgage Approval

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