Looking for Home Equity Loans in Ontario?

360Lending is an award-winning mortgage brokerage based in Richmond Hill, Ontario. Over 2,000 homeowners in Ontario have given us 5-star reviews and we have an A+ rating from the Better Business Bureau.

We help homeowners get the lowest rates for home equity loans, home equity lines of credit, refinancing, and other mortgage products.

To get approved for a home equity loan, click here to schedule a call with our team.

If you’re a homeowner in Ontario with no job or income right now, you might think getting a loan is out of the question—but that’s not always true. Thanks to the equity in your home, you may still be able to borrow money, even without traditional income.

Can You Get a Home Equity Loan with No Income?

You might be surprised, but yes—you can get a home equity loan even if you don't have a traditional source of income. Usually, banks rely heavily on your income to determine if you're eligible to borrow money. However, when it comes to home equity loans, the most crucial factor lenders look at is how much equity you have in your home or your loan-to-value ratio (LTV).

Equity is simply the amount of your home's value that you own outright. It’s calculated by taking your home's market value and subtracting what you owe on your mortgage.

If your home is worth $500,000

And your mortgage balance is $200,000

Then you have $300,000 in equity

The more equity you have, the easier it will be to qualify for a loan, even if you currently don't have regular income. Lenders primarily focus on your home's equity because it acts as security for the loan. If you’re unable to repay, the lender has confidence they can recover their money by selling the property.

What About the Monthly Payments with No Income?

If you have no income, you might worry about making monthly loan payments. Fortunately, some lenders offer creative solutions to this problem. One popular option is called an interest reserve. With an interest reserve:

You don't need to make monthly payments immediately.

The lender adds the interest payments directly into the loan amount itself.

Interest reserve example:

You borrow $50,000 with a one-year term.

Interest for the year totals $5,000.

The lender lends you $55,000, adding the $5,000 of interest to your initial loan.

This setup allows you to avoid making any monthly payments for the entire loan term, typically up to 12 months. This approach is particularly useful if you expect to have income later on, perhaps from a future job or the sale of your home. If you think an interest reserve might work for you, discuss it with your broker. They can help you set up this arrangement and clearly explain how it impacts your loan.

Home Equity Loan Interest Rates in Ontario

Currently in April 2025, interest rates for home equity loans in Ontario usually start around 6.99%. Your exact interest rate depends on factors like:

How much equity you have

Your credit history

Location and type of property

Generally, if you have substantial equity—even without a job or current income—you can still secure very reasonable interest rates. It’s always a good idea to use a broker to find the best possible rates.

What Do Lenders Look at with No Income?

Even though lenders won't necessarily require proof of income for a home equity loan, they still look at several important factors to decide if they’ll lend to you, including:

Previous Employment: Stable past employment reassures lenders that you’re likely to find employment again.

Property Location: Lenders prefer properties in stable and desirable locations.

Property Type: Single-family homes usually get approved more easily.

Amount of Equity Available: More equity means lower risk for lenders; often requiring at least 20% equity remaining after the loan.

Credit History: Good credit scores help lower interest rates; however, poor credit doesn't automatically disqualify you.

How to Apply for a Home Equity Loan with No Job

Applying for a home equity loan without income can be challenging, but it's possible by focusing on the equity in your home and working with the right broker.

Here's the outline of the process:

Consult with an Experienced Mortgage Broker: Engage a reputable broker who specializes in home equity loans, especially those involving non-traditional income scenarios. They can provide valuable insights into lender requirements and help identify suitable lending options.​

Assess Your Home Equity: Determine the amount of equity you have in your home. Equity is calculated by subtracting any outstanding mortgage balance from your home's current market value. The more equity you have, the better your chances of approval.​

Prepare Necessary Documentation: While traditional income verification may not be required, be ready to provide:​

Recent mortgage statements

Recent property tax statement

Assets information (i.e. stock, mutual funds, RRSPs, etc.)

Broker to Arrange Appraisal: The broker will arrange for a lender-approved appraiser to assess the property to help the lender determine the current market value of your home.

Review Loan Terms with the Broker: Ensure you understand all terms before proceeding.​

Closing and Fund Disbursement: Once approved, you'll proceed to closing, where final documents are signed. After closing, the loan funds are typically disbursed within a few business days.​

By focusing on your home's equity and collaborating with knowledgeable professionals, you can enhance your chances of securing a home equity loan, even without a traditional income source.

What Happens After You Get a Job?

After some time has passed, if your new income is stable and can be verified, your mortgage broker can help you take the next step—refinancing your home equity loan or converting it into a HELOC (home equity line of credit).

A good broker will follow up to help you:

Lock in a better interest rate

Get more flexible repayment options

Potentially borrow more, depending on your new income

Once your employment is back on track, and some time has passed to establish a stable employment history, your broker can guide you through your next move based on your goals—whether it’s to lower your payments or unlock more funds.

How Much Can You Borrow with a Home Equity Loan?

In most cases, lenders in Ontario will allow you to borrow up to 80% of your home’s appraised value, minus whatever you still owe on your mortgage.

As an example:

Your home is worth $600,000

Your existing mortgage is $300,000

80% of $600,000 is $480,000

So you may be able to borrow up to $180,000 ($480,000 - $300,000)

How much you can actually borrow also depends on your credit, location, property type, and lender guidelines. But the key factor will always be your available equity.

Your broker can calculate this for you based on your home’s current market value and what you still owe on it.

How Long Does It Take to Get a Home Equity Loan?

The process is usually quick—especially when working with a broker who knows the ropes. Here’s a general timeline:

Initial application and call: 1–2 days

Appraisal and document collection: 3–5 business days

Final approval and legal paperwork: 3–5 business days

In total, you can typically expect to receive funds within 2 weeks, depending on how quickly everything is submitted and the appraisal is completed.

Some lenders move faster than others, and using a broker can help speed things up since they coordinate all the moving parts for you.

Risks of a Home Equity Loan with No Income

As helpful as home equity loans can be, especially when you need cash urgently, there are still risks—especially when you don’t have regular income.

Repayment pressure: Even with an interest reserve, you will eventually need to start making payments, usually after 12 months. If your financial situation doesn’t improve, it can become difficult to manage.

Risk to your home: Since your home is the collateral, defaulting on the loan could lead to the lender forcing a sale.

These risks don’t mean a home equity loan is a bad idea—but they do mean you should have a clear plan. Work with a broker who will not only get you approved, but also help you understand what repayment might look like in the months or years ahead.

Alternatives to Borrow Money Without Income

If you're exploring borrowing money without income, it's good to know your alternatives. While home equity loans are attractive due to their typically lower interest rates, they aren't your only choice. Other options include:

Reverse Mortgages: Allow homeowners aged 55 or older to borrow against home equity without monthly payments. The loan is paid off when the home is sold or the homeowner passes away.

Unsecured Personal Loans and Credit Cards: Usually have higher interest rates, especially without income or with poor credit.

It’s important to weigh these options carefully and speak with an experienced financial advisor or broker who can help you decide what's best.

How to Get a Home Equity Loan with No Income

Getting a home equity loan with no job or income might seem out of reach—but it’s actually more doable than many people think. If you’ve built up strong equity in your home, you may still qualify, even without traditional income.

What really matters:

You have solid equity in your property (low loan-to-value)

You work with a knowledgeable mortgage broker

You understand your repayment strategy—even if it’s delayed with an interest reserve

You stay aware of the risks and have a plan for when your situation improves

Whether you’re in between jobs, self-employed without steady income, or living off other assets, a home equity loan could give you the financial flexibility you need—without selling your home or taking on high-interest credit.

When you’re ready, talk to a broker who can walk you through your options, match you with the right lender, and guide you through the whole process—from application to funding, and beyond.