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Can I Borrow from My Home Equity Without Refinancing? (Edmonton Guide)
May 11, 2025 | Posted by: Jeff Chin
For many homeowners in Edmonton and the surrounding areas like St. Albert, Sherwood Park, Leduc, and Spruce Grove, rising home values have unlocked a valuable financial asset: home equity. If you’re wondering whether you can access this equity without going through the hassle and cost of refinancing, the answer is yes.
In this article, we’ll explore how you can borrow from your home equity without refinancing, the options available in the Edmonton market, and how to determine which strategy may be right for your financial goals.
What Is Home Equity?
Home equity is the difference between your home’s current market value and the balance remaining on your mortgage. For example, if your Edmonton home is worth $500,000 and you owe $300,000 on your mortgage, you have $200,000 in equity.
Can You Borrow from Home Equity Without Refinancing?
Yes, you don’t need to refinance your entire mortgage to access your equity. There are alternative lending tools available in Alberta that allow you to tap into your home’s value without resetting your mortgage rate or term.
Popular Options in Edmonton for Accessing Home Equity
1. Home Equity Line of Credit (HELOC)
A HELOC is a revolving line of credit that’s secured against the equity in your home. You only pay interest on what you borrow, and it works similarly to a credit card. Many Edmonton lenders offer HELOCs, and they are ideal for:
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Renovations and home upgrades
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Emergency funds
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Education costs
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Consolidating high-interest debt
Note: You typically need at least 20% equity in your home to qualify for a HELOC in Alberta.
2. Second Mortgage
A second mortgage is a lump-sum loan that’s also secured by your property. Unlike a HELOC, this is not a revolving credit line, it’s a fixed-term loan with regular payments. This may be a good option for Edmonton homeowners who:
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Want to avoid touching their primary mortgage
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Need a specific amount of funds upfront
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Have equity but may not qualify for a HELOC
3. Reverse Mortgage
For Edmonton homeowners aged 55+, a reverse mortgage allows you to borrow money using your home equity without any monthly payments. The loan is repaid when the home is sold or the homeowner moves out.
This is increasingly popular among retirees in Alberta looking to boost their retirement income without selling their home.
Why Avoid Refinancing?
Refinancing your mortgage can be helpful in some cases, but it comes with costs:
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Prepayment penalties
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Legal and appraisal fees
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Potentially higher interest rates (especially in 2024’s climate)
For a deeper look at when refinancing might make sense, check out this article:
When Is the Right Time to Refinance Your Home in Edmonton?
Is Borrowing from Home Equity Right for You?
If you're considering borrowing from your equity, here are a few key factors to weigh:
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How much equity do you have?
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What are you using the funds for?
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Can you afford the additional payments?
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Are you close to retirement or looking to downsize soon?
Work With a Trusted Edmonton Mortgage Advisor
Whether you’re exploring a HELOC, second mortgage, or reverse mortgage, it’s crucial to speak with a licensed mortgage expert who understands the local lending landscape in Edmonton.
Talk to Steven Boodoo Today
Steven Boodoo has helped hundreds of clients in Edmonton and the surrounding areas access their home equity the smart way—without unnecessary refinancing.
Book a free consultation today and get expert advice tailored to your financial goals:
Contact Steven Boodoo
