Can I take equity out of my home at renewal?
Yes, through a refinance at renewal — not a straight renewal. Canadian lenders will refinance up to 80% loan-to-value on a conventional refi, or up to 65% for a HELOC portion (with combined mortgage + HELOC capped at 80% LTV). Re-triggers the OSFI stress test.
Doing an equity take-out at renewal is materially cheaper than mid-term because there's no prepayment penalty on the existing loan. Total cost is typically $1,000–$2,500 (appraisal + legal + title insurance).
Common uses: funding a major renovation, consolidating high-interest debt, funding a rental-property down payment, or covering tuition. Interest on the borrowed portion is only tax-deductible if the funds are used for income-producing purposes (investment, rental).
Jay Klair, Mortgage Agent Level 2 (M09000869) — Real Mortgage Associates, FSRA #10464, part of the DLGC Group of Companies · 5675 Whittle Rd, Suite 100, Mississauga, ON L4Z 3P8