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Put Your Home Equity to Work

Home equity is the current value of your home minus your outstanding mortgage balance. As you pay down your mortgage and/or your home appreciates in value, your equity grows. You can tap into this equity in a few ways, and finance other goals or purchases you may have.

Why Use Your Home Equity

If you need to access additional funds, using the equity in your home can be a lower cost way to borrow the money compared to taking out a traditional loan or using a credit card.

You can use your home equity to:

  • Renovate your home
  • Start a business
  • Pay for a family member’s education
  • Consolidate higher interest rate debt
  • Maximize your investments
  • Buy a car

Ways to Access Your Home Equity

There are a few ways you can get your home equity working for you. With all options, you may be able to access funds at rates lower than other types of loans, since the credit is secured against your home. Before moving forward with any option, be sure to carefully assess your financial situation – our advisors can help you evaluate your priorities and needs.

An RBC Homeline Plan combines a mortgage and home equity line of credit into one product. You can borrow up to 80% of the value of your home, and as you pay down your mortgage, you can access more of your equity through the line of credit portion of the plan.

After applying for the RBC Homeline Plan once, you can borrow again and again within your available credit limit without re-applying.

Learn more about the RBC Homeline Plan

Home Equity Lines of Credit use the equity in your home as collateral.

Because they are secured against the equity in your home, they typically come with interest rates that are lower than unsecured lines of credit.

When you refinance your mortgage, you replace your existing mortgage with a new one. When you exchange your mortgage for a larger one, the difference represents the equity you have built in your home. You can take that equity out in the form of cash.

Because mortgage rates are currently among the lowest borrowing rates, refinancing can help you pay off higher interest rate debt and free up your cash flow.

The RBC Mortgage Add-On option lets you access additional funds by adding them onto your existing RBC Royal Bank mortgage, based on the current appraised value of your home.

It’s easy to apply and add on to your mortgage.

Learn more about RBC Mortgage Add-On

Home Value Estimator

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