If you’ve owned your house for 5 years or nearly that long, chances are your home’s value has increased and your equity has built up. While it’s not set in stone, properties usually appreciate in value over about five years. As of September 2025, detached houses for sale in Brampton have seen an average price increase of 6.3% over the past five years. At the same time, semi-detached houses have seen a 4.83% increase in value.
Now, you can use the equity in your home to your advantage by selling the property. But what if you want to keep your house and still take advantage of equity? In this case, you can access the equity in your home with a reverse mortgage, HELOC, or home equity loan.
To help you figure out the best choice, let’s take a closer look at the key details of each option. But before that, it’s important to understand how to check the equity in your home.
How to Find Out How Much Equity You Have in Your Brampton House
Home equity can be a powerful financial tool. You can use it to fund home renovations, pay for big expenses, or create an emergency cash reserve. But before you tap into it, you need to know exactly how much equity you have built up.
STEP 1 – FIGURE OUT YOUR HOME’S CURRENT VALUE
Start by finding out an estimate of your home’s current market value. The easiest way is by using a free house value estimator in Canada. This online tool estimates your home’s worth using recent sales data, local market trends, and property details.
If you want a more accurate number, consider hiring a licensed appraiser. You can also ask a local real estate agent for a Comparative Market Analysis to see what similar homes are selling for.
STEP 2 – CHECK YOUR MORTGAGE BALANCE
Next, look at your latest mortgage statement or log into your lender’s portal. The amount you see is what you still owe.
STEP 3 – CALCULATE YOUR HOME EQUITY
Now, subtract your mortgage balance from your home’s market value. For example, if your home is worth $900,000, and you owe $600,000, your equity is $300,000.
Ways to Tap Into Your Home Equity Without Selling Your House
➔ Reverse Mortgages
A reverse mortgage is a unique type of loan that allows homeowners aged 55 and older to tap into their home equity without giving up ownership. You repay the loan only when you sell the home, move out temporarily, or pass away. Hence, the loan balance in reverse mortgages grows over time as interest is added.
UPSIDES –
1. No Monthly Payments
In a reverse mortgage, you don’t need to worry about paying a mortgage each month. The interest and loan principal are deferred until you eventually sell or leave your home.
2. Won’t Affect Government Benefits
If you rely on benefits like Old Age Security (OAS) or the Guaranteed Income Supplement (GIS), a reverse mortgage won’t reduce your payments.
3. Tax-Free Funds
The money you receive from a reverse mortgage is tax-free. You don’t report the funds as income, so it won’t increase your tax bill.
DOWNSIDES –
1. Higher Interest Rates
Reverse mortgages typically have higher rates than conventional mortgages. According to Rates.ca, Home Equity Bank charges 8.49% for a 5-year fixed reverse mortgage and 9.40% for variable ones. Equitable Bank’s reverse mortgage rates were 6.74% for a 5-year fixed term and 9.39% for variable terms.
2. Equity Shrinks Over Time
Interest compounds over the life of the reverse mortgage, so the amount of equity in your home gradually decreases. This reduces the inheritance or the future sale value of your house in Brampton.
3. Prepayment Penalties Can Be Complex
Many reverse mortgages have a probationary period, often around five years, where prepayment penalties are highest. After this period, some lenders allow you to pay down up to 10% of the principal annually without penalty.
➔ HELOC
A Home Equity Line of Credit, or HELOC, gives you a revolving line of credit based on the equity you’ve built in your property. You can borrow, repay, and borrow again as needed, up to a limit.
UPSIDES –
1. Access Funds Whenever You Need Them
You can borrow whenever you need cash, up to a limit based on your home’s equity. Lenders usually allow you to tap 65-80% of your home’s value minus your mortgage balance.
2. Pay Interest Only On What You Use
Unlike a standard loan, where interest accrues on the full amount, a HELOC charges interest only on the funds you actually withdraw. For example, let’s suppose your limit is $50,000, but you only take $10,000. In this case, your interest will be calculated only on $10,000.
3. Lower Interest Rates Than Credit Cards
Currently, HELOC rates range between 4.20% and 5.70%. Compare that to credit cards, which often charge 20% or more, and you can see the savings potential.
DOWNSIDES –
1. Risk of Losing Your Home
A HELOC is secured against your Brampton property. Hence, if you fail to make payments, the lender can foreclose on your home.
2. Interest Rates Can Change
Most HELOCs have variable interest rates that follow the prime rate. If the prime rate increases, expect your monthly payments to rise too.
3. Upfront Costs Can Add Up
Setting up a HELOC isn’t free. Expect to pay appraisal fees, legal fees, and other administrative costs, which can be around $1,300 in Ontario.
➔ Home Equity Loan
A home equity loan lets you borrow a lump sum of money using the equity in your home as security. Typically, people use this loan for big expenses, such as home renovations, debt consolidation, or other major costs. Unlike a line of credit, the lender gives the full money upfront, and you repay it on a set schedule.
UPSIDES –
1. Steady, Predictable Payments
With a home equity loan, you borrow a fixed amount and pay it back at a fixed interest rate. Thanks to this factor, your monthly payment stays the same for the entire loan term.
2. Lower Interest Rates Than Unsecured Loans
Since your home secures the loan, the lender can offer much lower interest rates than on credit cards or personal loans. Home equity loans in Ontario are available starting at about 7.99%.
3. Possible Tax Perks On Interest
If you use the money to earn income, say, investing in a rental property or starting a small business, the interest you pay on the loan may be tax-deductible.
DOWNSIDES –
1. Less Flexible Than a HELOC
Unlike a HELOC, you cannot borrow more money once you take out a lump sum. If you need additional funds, you’ll have to apply for a new home equity loan.
2. Your Home Is On The Line
Remember, like the other two options, your home secures this loan. Hence, if you miss payments, the lender can take legal action, which could include foreclosure.
3. Upfront Fees Are Part of The Deal
Lenders charge closing costs to set up a home equity loan. These fees cover legal work, appraisals, and administrative expenses. In Ontario, expect closing costs around 3 to 4% of your Brampton house’s value.
Finding the Right Way to Tap Into Your Home’s Value
Deciding how to access your home’s equity comes down to your age, financial goals, and comfort with repayment. If you’re 55 or older and want funds without monthly payment obligations, a reverse mortgage would be a good fit. A HELOC may work well if you prefer flexible access to funds and can handle variable interest. For those who want a fixed lump sum with predictable monthly payments, a home equity loan makes sense.
In the end, the right financing option is one that can unlock funds while keeping your Brampton house secure and finances under control.
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