Frequently Asked Questions

Also known as a Home Equity Mortgage. Chances are the value of your home has increased since you bought it. At Richard Earles Mortgages, a home equity loan can get you access to money based on the increased market value.


To calculate how much you can borrow with a home equity loan simply use this equation:


Your Home’s Value  Your Mortgage Balance = Your Home Equity


For example:

If you bought a home 20 years ago for $400,000 and have paid $350,000 of your first mortgage you now only have $50,000 remaining to pay. Over the 20 years you have owned the home, its value has increased giving it a present day value of $750,000. By taking the present day value and subtracting the amount remaining on your mortgage you will get your home’s equity.


$750,000 (Present Day Value)  $50,000 (Remaining Balance) = $700,00


With a Richard Earles Mortgages home equity loan, you could have access to a portion of your home’s equity within a week.

The two major advantages of a home equity loan are a lower interest rate and tax savings.


The interest rate you pay on your average home equity loan is lower than the interest rate you will pay on your average credit card by 8% to 12% or more. Home equity loans also have a lower interest rate than personal mortgages and other types of non-secured debt.


For home equity loans, depending on what the money is used for, you may be able to deduct the interest you pay on the money you borrow. The interest you pay on credit cards and personal mortgages is generally not tax deductible.

You can use a home equity loan for anything. Common uses include debt consolidation (paying off high-interest credit card debt), home improvements, paying for education expenses/tuition, investments, starting a business or growing an existing business, taking a dream vacation or providing you with additional cash flow for any temporary situation that may arise. You can also use a home equity loan to pay for medical emergencies or as a business investment to buy another piece of property.

Use the following equation to calculate how much home equity you have:


Your Home’s Value  Your Mortgage Balance = Your Home Equity


First, calculate how much home equity you have. Once you’ve determined your home’s equity you could have access to a portion of that equity within a week from your brokers at Richard Earles Mortgages!

At Richard Earles Mortgages, we can have your home equity loan application approved within 24 hours and you could have money in your bank account within one week.

Applying for a home equity loan, or any other types of mortgage, can be simply done by completing our online application or by giving us a call. Applying online is easy, secure and will take less than 2 minutes. If you apply during our normal business hours, a Richard Earles Mortgage specialist (or myself!) will call you back within 2 hours.

A second mortgage may also be known as a home equity loan. The mortgage you obtained when you purchased your home is your first mortgage and a subsequent mortgage or, home equity loan would be a second mortgage.


Second or third mortgages can be used to consolidate outstanding debt from other sources, renovate your home, pay for your child’s education, start or finance a business or, be used for any reason you see fit.


If you’re considering taking out an additional mortgage on your home, we encourage you to speak with our mortgage specialist who will discuss your unique financing needs. After researching and discussing your options, we will provide you with the best financing solution for you.

Yes. Some dishonest lenders will seek to make maximum profit at your expense. They may help you get a mortgage you can’t afford or overcharge you for your mortgage. You should also be aware of hidden fees or lenders whose mortgages have a large jump in the interest rate in the second and/or subsequent years of the mortgage.


At Richard Earles Mortgages, we strive to share all of the relevant information with you so you are equipped to make the best decision. We welcome our potential borrowers to ask lots of questions and even bring quotes from other lenders to us so we can truly help people make the best decision.

Your monthly payment will be automatically debited from your bank account on the same day of each month that was agreed upon between you and your lending specialist.

Use a debt consolidation mortgage to pay off several high-interest loans (like multiple credit cards) at a much lower rate. By doing this, you can reduce your monthly payments by as much as two thirds.

Credit ratings are designed to do one single thing – rank consumers based on their level of risk to a lender. However, the credit rating system is not perfect. The parameters of how credit is scored are very narrow – factors such as if you pay your credit card bills on time, if you’re a homeowner, and if you’re employed. What credit ratings don’t take into account are most external factors.


While we ask for your credit estimate during the application process, most banks and lenders weigh your applications more favourably towards the equity side. It is only when you don’t own a home or property, does your credit become the primary evaluator of the terms you can qualify for.

As a home equity lender, the predominant criteria we consider when approving a home equity loan is the equity you have in your home so, you can definitely obtain a home equity loan if you are self-employed. Typically, we can approve a home equity loan application within 24 hours regardless of your credit, age or income history.

Richard at a coffee shop reading a success store from a client

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