Mortgage term
Equity
Definition
The portion of your home you own outright — appraised value minus mortgage balance. Equity grows through principal payments and home-price appreciation. You can access it via a refinance, HELOC, or reverse mortgage.
On a $700,000 home with a $350,000 mortgage, your equity is $350,000. Canadian lenders will typically let you borrow against up to 80% of appraised value (65% for a HELOC portion), so the maximum accessible equity here is $560,000 total loan — $210,000 of new borrowing.
Equity take-outs at renewal require a refinance (not a straight renewal) and re-trigger the stress test.