Real estate experts the Scott Brothers answer your burning real estate questions, including how sellers can stand out in a buyer's market.

Scott Brothers Q&A: How to stand out in a buyer's market

In this limited series, our investors and Canadian real estate industry experts — the Scott Brothers — answer Canada’s most burning real estate questions, which can help you buy, move, and sell with confidence.

The Scott Brothers Q&A: Selling your home in a buyer’s market? Here’s how to stand out.

Real estate experts the Scott Brothers answer your burning real estate questions, including whether you should buy, sell, or stay put.

Scott Brothers Q&A: Should I buy, sell, or stay put?

The Scott Brothers Q&A: Buy, sell, or stay? Here’s what to consider before making a move in Canada’s real estate market

You’ve been asking us for a Properly Home Search app for a while … so we’re excited to share that it’s finally here!

Properly announces launch of new mobile app

You’ve been asking us for a Properly app for a while … and we’re excited to share that it’s finally here: Properly Home Search app is now available on the Apple App Store and the Play Store!

Good news, mobile users: Finding your next home just got a whole lot easier!

What's a down payment? What can I afford? Asked yourself these questions? You're not alone. Learn the answers in our handy down payment FAQ.

Down payment breakdown: The what, why, and how

What's a down payment? Is it the same as a deposit? What's mortgage insurance? What can I afford? If you've asked yourself these questions, you're not alone. To help demystify down payments and prepare you for the home buying process, we've broken it all down in this handy FAQ.

“How much down payment do you need for a house?” — and other big home buying questions

Timing is crucial when buying a new home and selling the old one. Imagine that you've found your dream home, but your current home hasn't so

What is a bridge loan and how it can help you buy and sell at the same time

Timing is crucial when buying a new home and selling the old one. Imagine that you've found your dream home, but your current home hasn't sold yet. What should you do next? That's where a bridge loan comes into play. What is a bridge loan and how can it help ...

What is a bridge loan, and how can it help you buy and sell at the same time?

<h1>What is a bridge loan and how does it work?</h1>
<div>
<p><span>Timing is crucial when buying a new home and selling the old one. Imagine that you've found your dream home, but your current home hasn't sold yet. What should you do next?&nbsp;</span></p>
<p><span>That's where a bridge loan comes into play.</span></p>
<p><span><strong>What is a bridge loan</strong>&nbsp;and how can it help you? That's where we're here to explain!</span></p>
<h2><b><i>What is a bridge loan?</i></b></h2>
<p><span>A&nbsp;<strong>bridge financing or loan</strong>&nbsp;allows you to carry the<strong>&nbsp;mortgage for two properties that typically last for 90 days</strong>. The loan gives you the time to&nbsp;</span><i><span>bridge&nbsp;</span></i><span>the gap between closing on your current property and moving into the other.</span></p>
<h2><b><i>How does a bridge loan work in Canada?</i></b></h2>
<p><span>A bridge loan in Canada usually has a<strong>&nbsp;90-day period.</strong>&nbsp;With a bridge loan, you don't have to make regular payments while waiting for your home to close. Depending on your lender, your loan will have interest-only payments during the duration of the loan or accrue the payments and require full repayment and interest at maturity.</span></p>
<p><span>The lender will have a real estate lawyer sign an assignment of proceeds of the sale, which states that the borrower will repay the full loan upon the sale of the home. Since bridge loans have short terms, they come with higher interest rates than standard mortgages.</span></p>
<h3><b>Example</b></h3>
<p><span>Suppose you have a 30-day closing date for your new home but expect to complete the sale of your current home within 90 days. In that case, your bridge loan will pay for and cover the 60-day gap.&nbsp;</span></p>
<p><span>If you own a $400,000 home and owe $200,000 on your mortgage, you may qualify for a $200,000 bridge loan. Once you sell your current home, the equity from that sale will go towards repaying your bridge loan.&nbsp;</span></p>
<p><span>Keep in mind that bridge loans include closing costs and other fees. If there is a firm sale on the existing home, most major banks in Canada will go up to a 90-95% Loan-to-value ratio when offering a bridge loan. This allows you to use almost all of the equity available in your current home.&nbsp;</span></p>
<p><span>However, most private lenders will not exceed a 75% loan-to-value ratio when offering a bridge loan. If you want a bridge loan, you'll have to maintain at least 30% equity in the current asset you own.</span></p>
<h3><b>Loan qualification process</b></h3>
<p><span>The qualification process for a bridge loan in Canada is similar to a<a href="https://www.properly.ca/blog/post/how-to-get-a-pre-approved-mortgage/" rel="follow">&nbsp;mortgage application</a>. Lenders will ask for proof of income, bank statements, and credit checks. You&rsquo;ll need to apply from the same lender that provided you with your initial mortgage. Since you&rsquo;ve already applied with your lender, they should already have all your information.</span></p>
<p><span>The big question is: What's required for approval? Before approving your bridge loan, lenders need to see t</span><span>he&nbsp;<strong>Agreement of Purchase</strong>&nbsp;and&nbsp;<strong>firm sale for your current home, as well as one for your new home</strong>. Your financial institution may not extend you a bridge loan without both agreements</span><span>. Banks may not lend you money without a sale agreement.&nbsp;</span></p>
<h2><b>What are the pros and cons of bridge financing in Canada</b></h2>
<p><span>As with any financial decision, bridge loans have their advantages and disadvantages.&nbsp;</span></p>
<h3><b>Pros</b></h3>
<ul>
<li aria-level="1"><span>They allow you to put a sizable down payment on a new home before selling your old home.&nbsp;</span></li>
<li aria-level="1"><span>After taking possession of your new property, you can stay in the old home to complete renovations.</span></li>
<li aria-level="1"><span>You pay the loan back after you close on your home, offering more flexibility.&nbsp;</span></li>
</ul>
<h3><b>Cons</b></h3>
<ul>
<li aria-level="1"><span>Bridge loans have a short lifespan, with high-interest rates of prime plus the current interest rate and depending on your application.</span></li>
<li aria-level="1"><span>The lender may use a variable prime rate, which means your interest rates can suddenly change.&nbsp;</span></li>
<li aria-level="1"><span>Your home may not close, which could lead to difficulties paying back the loan.&nbsp;</span></li>
</ul>
<p>Worries about your home not selling?<a href="https://www.properly.ca/how-it-works/" rel="follow"><span>&nbsp;</span>Learn about our Sale Assurance</a>!</p>
<h2><b><i>How long can you bridge a mortgage?</i></b></h2>
<p><span>Lenders typically offer bridge loans for 90 days but can extend them. If you require a larger loan or a longer repayment period, the lender may agree to assess your situation on a case-by-case basis. While bridge loans don't need a lien (legal right for property seizure to pay back debt), different terms may cause the lender to place a lien on your property.&nbsp;</span></p>
<h2><b>Alternatives to a bridge loan</b></h2>
<p><span>If you're planning on obtaining a bridge loan, you may want to consider other alternatives to keep your options open.</span></p>
<h3><b>Home equity loans</b></h3>
<p><span>Homeowners who need cash but don't want to sell their homes can apply for a home equity loan. A home equity loan, also known as a second mortgage in Canada, refers to a loan taken out on a home with an existing mortgage. Your home will serve as collateral for both mortgages, meaning the banks or lenders may foreclose if you fail to pay.</span></p>
<h3><b>Home equity line of credit (HELOC)</b></h3>
<p><span>A home equity line of credit, or HELOC, provides a secured line of credit. The lender will use your home as collateral to guarantee you will repay the loan. Homeowners that need a large amount of money should apply for a HELOC, as it allows you to borrow up to 80% of your&nbsp;</span></p>
<h3><b>Personal loan</b></h3>
<p><span>A personal loan involves borrowing money you agree to pay back over time. It's your responsibility to repay the entire amount of the loan, including any interest and applicable fees. Most people use personal loans to consolidate debt or finance purchases like home renovations or cars.</span></p>
<h2><b>Going with Properly!</b></h2>
<p><span>Hopefully, you can now answer, "What is a bridge loan?" At Properly, we want you to know what the home buying and selling process entails, from acquiring bridge loans to financing mortgages.</span></p>
<p><span> Contact Properly today and speak with a mortgage advisor about how we can help you!</span></p>
<p><span>-</span></p>
<h5><b><i>DISCLAIMER: This article is provided for informational purposes only. It is not an exhaustive review of this topic. The content is not financial or investment advice. No professional relationship of any kind is formed between you and Properly, Properly Brokerage, or Properly Homes. While we have obtained or compiled this information from sources we believe to be reliable, we cannot and do not guarantee its accuracy. We recommend that you consult a trusted professional before taking any action related to this information. Properly is a tech-enabled real estate brokerage that is transforming the home buying and selling experience with AI-powered home valuations and a modern streamlined service. We recommend that you compare and contrast your options, read the fine print, and conduct detailed research into any real estate, loan, and/or investment provider before using their services.</i></b></h5>
</div>
<div class="slug__PostCTA-sc-f79s8a-9 eSOvGq">Properly is a Canadian tech-enabled real estate brokerage transforming the home buying and selling experience as the only service in Canada that helps homeowners to buy before they sell.</div>

Finances

Move

Whats a bridge loan? A bridge loan can help you buy and sell a home at the same time with less stress!

What is a bridge loan and how does it work?

<h1 class="slug__StyledTitle-sc-f79s8a-7 iNwjEl looks-like-h2 serif">5 costs to know about before buying a home: An expense checklist</h1>
<p><span>For first-time and seasoned home buyers, it can be overwhelming to keep track of all the steps&mdash;and sometimes hidden costs&mdash;involved in closing on the perfect place.</span></p>
<p><span>That&rsquo;s why we&rsquo;ve crafted this handy financial checklist to guide you through the process&mdash;one which involves multiple financial pieces, including:</span><b></b></p>
<ul>
<li><b>The down payment and deposit</b></li>
<li><b>Expenses prior to closing</b></li>
<li><b>Expenses at closing</b></li>
<li><b>Expenses following closing, and&nbsp;</b></li>
<li><b>Ongoing expenses</b></li>
</ul>
<p><span>Use this checklist to guide you through&nbsp;</span><b>the steps involved in buying a home, the associated expenses and closing costs, and the people who can help make this monumental transaction as stress-free as possible.</b></p>
<h2><b>Do a personal financial assessment</b></h2>
<h3><b><i>What can you afford?</i></b></h3>
<p><span>Look at your own income level, and existing debts, and check your credit score so you have a basic understanding of your own financial health.&nbsp;</span><span>Use our mortgage calculator</span><span>&nbsp;to get a baseline before going any further.&nbsp;</span></p>
<h2><b>Remember your mortgage qualification and pre-approval</b></h2>
<p><span>There can be a lot of hurdles to jump through in order to get a mortgage, including:</span></p>
<ul>
<li aria-level="1"><a href="https://www.properly.ca/blog/post/fixed-vs-variable-mortgages-canada-which-is-better-interest-rate-hike/"><span>Choosing a type of mortgage (variable vs. fixed)</span></a></li>
<li aria-level="1"><span>Shopping around for rates at&nbsp;</span><a href="https://www.properly.ca/blog/post/fixed-vs-variable-mortgages-canada-which-is-better-interest-rate-hike/"><span>a few different types of mortgage lenders</span></a></li>
<li aria-level="1"><span>Organizing income documentation, and</span></li>
<li aria-level="1"><span>Getting a pre-approval letter</span></li>
</ul>
<p><a href="https://www.properly.ca/blog/post/7-mistakes-to-avoid-when-buying-a-home/"><span>Check out our full list</span></a><span>&nbsp;of how to simplify the mortgage qualification process.</span></p>
<h2><b>1. Don&rsquo;t forget the down payment and deposit</b></h2>
<h3><b><i>What should you put down?</i></b></h3>
<p><span>Once you look at your own accounts and have spoken to a lender, you should have a good idea of how much you can use as a down payment. The minimum deposit in Canada is&nbsp;</span><span>5% of the purchase price, but 20%</span><span>&nbsp;is usually a safer bet (we&rsquo;ll get into this later).&nbsp;</span></p>
<p><b>Don&rsquo;t count on using all of your cash for a down payment</b><span>&mdash;there may be more hidden expenses than you think.</span></p>
<h3><b><i>Have funds at-the-ready</i></b></h3>
<p><span>Make sure your money is liquid, meaning selling stocks, bonds, or other investments for cash. You&rsquo;ll need to be able to get a certified cheque or bank draft quickly for a deposit with your offer.&nbsp;</span></p>
<p><span>Offer deposits can be around&nbsp;</span><span>5%</span><span>&nbsp;of the purchase price and are submitted with your offer. Think of it as an advance on your down payment so the sellers will take a closer, and more serious, look at your offer. A head&rsquo;s up: you&rsquo;ll need an additional draft, or wire transfer, for your deposit at closing.</span></p>
<h2><b>2. Expect these expenses<span>&nbsp;</span></b><em><b>prior</b></em><b><span>&nbsp;</span>to closing</b></h2>
<p><span>When the time comes for closing, the following additional expenses enter into the homebuying equation. Make sure you&rsquo;re aware of all the fees prior to, at, and following the close of your home purchase.&nbsp;</span></p>
<h3><b><i>Home inspection</i></b></h3>
<p><span>While inspections aren&rsquo;t necessarily required, they can save you money in the long run. Typically, a home inspection will be&nbsp;</span><span>$300-$1,000 CAD.</span><span>&nbsp;Spending the money now to uncover potential issues may help save on expensive repairs down the road.</span></p>
<h3><b><i>Land survey</i></b></h3>
<p><span>If you&rsquo;re buying a detached or semi-detached home, your lender may also want to do a land survey to show a property&rsquo;s boundaries. Costs can vary depending on the level of research.</span></p>
<h3><b><i>Home appraisal</i></b></h3>
<p><span>Most lenders require a home appraisal so they know your home is worth what you paid. The amount of your mortgage may be contingent on the appraised value, rather than the offer price. You should expect to chip in between&nbsp;</span><span>$275 and $500.&nbsp;</span></p>
<h3><b><i>Selling? More expenses may be involved</i></b></h3>
<p><b>If you&rsquo;re simultaneously buying and selling, you may have a few more expenses</b><span>, like staging your home so you get the highest price. Some real estate agents will include it in their fees, but it can also be a separate expense.</span></p>
<h2><b>3. Expect these expenses<span>&nbsp;</span></b><em><b>at</b></em><b><span>&nbsp;</span>closing</b></h2>
<h3><b><i>Legal fees</i></b></h3>
<p><span>You&rsquo;ll need a lawyer to walk you through closing documentation and your mortgage. Many law firms will charge a flat fee for straightforward transactions, anywhere between approximately&nbsp;</span><span>$900-$2,000.&nbsp;</span></p>
<h3><b><i>Real estate agent fees</i></b></h3>
<p><b>Agent fees are paid by the seller.<span> The standard</span></b><span>&nbsp;commission is&nbsp;</span><span>5%</span><span>&nbsp;of the purchase price and is split between the buyer&rsquo;s and seller&rsquo;s agents. Since this is one of your biggest expenses, you should check out a&nbsp;</span><a href="https://www.properly.ca/blog/post/a-breakdown-of-toronto-real-estate-fees/"><span>full breakdown of these fees</span></a><span>.&nbsp;</span></p>
<h3><b><i>Land transfer and other taxes</i></b></h3>
<p><span>Depending on where you live, moving-related property taxes can make a big dent in your budget. Land transfer taxes vary by province and municipality, but they are significant in both Toronto and Vancouver.&nbsp;</span><b>Land transfer is paid by the purchaser of a property.<span>&nbsp;</span></b><span>Check out these sites for a full breakdown of land transfer taxes in&nbsp;</span><a href="https://trreb.ca/index.php/buying/calculators/residential" rel="follow noopener" target="_blank"><span>Toronto</span></a><span>&nbsp;and&nbsp;</span><a href="https://forms2.gov.bc.ca/forms/content?id=EEE44ACAC0DB4212BB616D7BD233F2A6" rel="follow noopener" target="_blank"><span>Vancouver</span></a><span>.&nbsp;</span></p>
<p><b>You might also have to pay GST, PST, or HST on your home</b><span>, but this generally only applies if your home is a new-build or has been substantially renovated.&nbsp;</span></p>
<h3><b><i>Title insurance</i></b></h3>
<p><span>Title insurance protects you from title defects, omissions and errors, and anyone trying to make a claim on your property. Costs do vary from province to province, but they could be anywhere from&nbsp;</span><span>$150-$350.</span></p>
<h2><b>4. Expenses<span>&nbsp;</span><em>following</em><span>&nbsp;</span>closing</b></h2>
<h3><b><i>Mortgage insurance</i></b></h3>
<p><span>There are two main buckets of mortgage insurance:&nbsp;</span></p>
<ul>
<li aria-level="1"><b>Default Insurance:</b><span>&nbsp;If your down payment is</span><span>&nbsp;less than 20%</span><span>, you&rsquo;re required to pay default insurance to protect the lender if you can&rsquo;t make payments.&nbsp;</span><a href="https://www.cmhc-schl.gc.ca/en/consumers/home-buying/calculators/mortgage-calculator" rel="follow noopener" target="_blank"><span>Use this calculator</span></a><span>&nbsp;to see how much you are likely to pay.</span></li>
<li aria-level="1"><b>Critical illness / Disability / Life insurance:<span>&nbsp;</span></b><span>this isn&rsquo;t required, but it can give you peace of mind. If anything serious happens, your family can continue living in your home without worrying about mortgage payments.</span></li>
</ul>
<h3><b><i>Moving</i></b></h3>
<p><span>Don&rsquo;t forget about the costs of actually moving&mdash;which can quickly add up! Save yourself time and effort by shelling out for movers, or save the cash and round up some very, very good friends.</span></p>
<h3><b><i>Furniture</i></b></h3>
<p><b>Don&rsquo;t underestimate how expensive furniture can be!<span>&nbsp;</span></b><span>Make sure to save some money to furnish and stock your home. Think bedding, towels, kitchen essentials, cleaning supplies, and anything else you need to create a comfortable home for you, your family, your pets, and future guests!&nbsp;</span></p>
<h2><b>5. Keep track of these ongoing expenses</b></h2>
<p><span>Owning a home comes with more expenses than renting, so be sure to&nbsp;<strong>keep these future home-owner expenses in mind</strong>:</span></p>
<ul>
<li aria-level="1"><span>Homeowners&rsquo; Association (HOA) fees or condo fees</span></li>
<li aria-level="1"><span>Property taxes</span></li>
<li aria-level="1"><span>Utilities</span></li>
<li aria-level="1"><span>Repairs and upkeep, and</span></li>
<li aria-level="1"><span>Home insurance</span></li>
</ul>
<h2><b>Find the right people.</b></h2>
<p><span>Having knowledgeable people guiding you through the process can demystify the more confusing elements of the home-buying transaction.&nbsp;</span></p>
<p><a href="https://www.properly.ca/agents/"><span>Finding the right agent</span></a><span>&nbsp;is a huge part of feeling comfortable while buying or selling a home. Still have questions?&nbsp;</span><a href="https://calendly.com/properly-operations-team/properly-consultation?month=2022-05"><span>Contact our team of agents</span></a><span>,&nbsp;</span><a href="https://go.properly.ca/sell-for-more/"><span>home stagers</span></a><span>, or analysts to help you on your way.&nbsp;</span></p>
<p><span>&mdash;</span></p>
<h5><i><span>*DISCLAIMER: This article is provided for informational purposes only. It is not an exhaustive review of this topic. The content is not financial or investment advice. No professional relationship of any kind is formed between you and Properly, Properly Brokerage, or Properly Homes. While we have obtained or compiled this information from sources we believe to be reliable, we cannot and do not guarantee its accuracy. We recommend that you consult a trusted professional before taking any action related to this information. Properly is a tech-enabled real estate brokerage that is transforming the home buying and selling experience with AI-powered home valuations and a modern streamlined service. We recommend that you compare and contrast your options, read the fine print, and conduct detailed research into any real estate, loan, and/or investment provider before using their services.*</span></i></h5>

Essentials

Bookmark this checklist to remember all the costs and expenses involved in buying and owning a home.

Know these 5 hidden costs before buying a home

<h1>What's the difference between a down payment and a deposit?</h1>
<p><span>So you're in the market for a new home&mdash;congratulations! This is an exciting time, but it's also a time when things can start to get a little confusing. For example, what's the difference between a deposit and a down payment? Do you need both? How much should each one be?</span></p>
<p><span>Don't worry, we're here to help clear things up. Keep reading to learn everything you need to know about deposits and down payments so that you can make informed decisions throughout your home-buying journey.</span></p>
<p>A down payment is a sum of money that you put towards the purchase of your home. It's typically calculated as a percentage of the home's purchase price and it's paid at the time of sale.</p>
<p>A deposit, on the other hand, is money that you put towards securing a property prior to sale. In other words, it's money that you pay to a real estate agent or seller in order to take the property off the market. The deposit is usually equal to 5% of the purchase price and it's paid when you sign the contract.</p>
<h2>House Deposit - Definition</h2>
<p><span>A house deposit is money that you pay upfront to show the seller that you're serious about buying their home. Deposits are typically 5% of the purchase price and are paid at the time of signing the contract. In some cases, the deposit may be refundable if the deal falls through. </span></p>
<h2>How much of a deposit is needed to buy a house in Canada?</h2>
<p><span> A house deposit is needed to show the seller that you are committed to making a purchase! You will need to submit the deposit to the seller when you make an offer. </span><span>Once the house is closed, you can redirect the funds toward the closing costs or down payment. </span></p>
<p><span>While there is no minimum deposit required, this will be determined by the seller. A<strong> general rule is 5% of the purchase price.</strong> For example, if the house is selling for<strong> $800,000</strong>, you will need a <strong>$40,000 house deposit.</strong></span></p>
<h2>When do you pay the house deposit?</h2>
<p>You'll pay the deposit when you sign the contract. At this point, the property will be taken off the market and held for you until closing.</p>
<h2>Where does the deposit go?</h2>
<p>In most cases, t<span>he house deposit is held by the seller&rsquo;s brokerage and will be in a trust account</span>. They will then disburse the funds to the seller on closing day.</p>
<h3><em>What if the deal falls through?</em></h3>
<p>If the deal falls through, your deposit may be refundable. This will be specified in your contract. For example, if you're buying a home that's still under construction, the deposit may be refundable if the builder is unable to complete the project.</p>
<p>If you're buying a resale home, the deposit may be refunded if the deal falls through for any number of reasons (e.g. financing fell through, the home didn't pass inspection, etc.).</p>
<h2>What's a down payment? - Definition</h2>
<p>A down payment is money you'll put towards the purchase price of your home. It's typically calculated as a percentage of the home's purchase price and it's paid at the time of sale.</p>
<h2>What can be used as a down payment?</h2>
<p><span>If you're trying to figure out how you can gather enough cash for a down payment, it's important to understand what can and cannot use! </span><span>For example, if you're a first-time home-buyer, you can withdraw from your RRSP without getting taxed. </span></p>
<p><span>Here are some other sources that you can use for a down payment:</span></p>
<ul>
<li><span>Personal savings </span></li>
<li><span>Gift</span></li>
<li><span>loans from friends and family</span></li>
<li><span>Home equity</span></li>
<li><span>Down payment assistance programs</span></li>
</ul>
<h2>How much is a down payment for a home?</h2>
<p><span>The down payment will depend on the cost of the house and how much you can afford! </span></p>
<p><span>If a house is for sale for $500,000 or less, the minimum down payment is 5%. If the purchase price is between $500,000 to $999,000, borrowers must come up with a down payment of 5% for the first $500,000 and 10% down for the second portion of the purchase price. </span></p>
<p><span>If the home is over a million dollars, the down payment has to be 20%. If you put down less than 20%, you should make sure you still have some extra cash for closing costs. You will need at least one month's worth of living expenses as a cushion for unexpected repairs and maintenance. </span></p>
<p><strong>Note</strong><span><strong>:</strong> All mortgages registered through a major financial institution where the </span><span>deposit is less than 20%</span><span> and the</span><span> home sale price is below $1 million</span><span>&nbsp;will require mortgage insurance.</span></p>
<h2>When do you pay the down payment?</h2>
<p>You'll pay the down payment at closing. This is a normal procedure when buying a home. The down payment is usually a percentage of the purchase price. Closing is when the transaction is finalized and you take ownership of the property. This is when the purchase price of the home will be finalized and disbursed to the seller.</p>
<h2>Where does the down payment go?</h2>
<p>There are a few things you should know about down payments when you're taking out a loan. The down payment goes to the mortgage lender.&nbsp;</p>
<p>You may be wondering why the lender needs the down payment. Well, it shows that you're committed to repaying the loan, and it also gives the lender security in case you default on the loan.</p>
<p>So, when you're taking out a loan, be sure to ask about the down payment and make sure you have the money ready. It's an important part of the process!</p>
<p>Now that you know the difference between a deposit and a down payment, you can start planning for your home-buying journey with confidence. Just remember to work with a real estate professional who can help guide you through the process and answer any questions you may have along the way.</p>
<p>-</p>
<h5><b><i>DISCLAIMER: This article is provided for informational purposes only. It is not an exhaustive review of this topic. The content is not financial or investment advice. No professional relationship of any kind is formed between you and Properly, Properly Brokerage, or Properly Homes. While we have obtained or compiled this information from sources we believe to be reliable, we cannot and do not guarantee its accuracy. We recommend that you consult a trusted professional before taking any action related to this information. Properly is a tech-enabled real estate brokerage that is transforming the home buying and selling experience with AI-powered home valuations and a modern streamlined service. We recommend that you compare and contrast your options, read the fine print, and conduct detailed research into any real estate, loan, and/or investment provider before using their services.</i></b></h5>

Everything you need to know about deposits and down payments. Learn what makes them different and how to save for both. 

House deposit vs down payment

<h1>What is home equity and how does it work?</h1>
<h2>What is home equity?</h2>
<h2>How does home equity work in Canada?</h2>
<h2>How to build home equity</h2>
<h2>Using your home equity</h2>
<h2>Types of home equity loans</h2>
<h3>refinancing your home</h3>
<h3>HELOC - home equity line of credit</h3>
<h3>Reverse Morgage</h3>
<h3>second mortgage</h3>
<h2>Risks of borrowing against home equity</h2>
<p>-</p>
<h5><b><i>DISCLAIMER: This article is provided for informational purposes only. It is not an exhaustive review of this topic. The content is not financial or investment advice. No professional relationship of any kind is formed between you and Properly, Properly Brokerage, or Properly Homes. While we have obtained or compiled this information from sources we believe to be reliable, we cannot and do not guarantee its accuracy. We recommend that you consult a trusted professional before taking any action related to this information. Properly is a tech-enabled real estate brokerage that is transforming the home buying and selling experience with AI-powered home valuations and a modern streamlined service. We recommend that you compare and contrast your options, read the fine print, and conduct detailed research into any real estate, loan, and/or investment provider before using their services.</i></b></h5>

What is home equity and how does it work?

<h1>What is a second mortgage?</h1>
<h2>What Is a Second Mortgage?</h2>
<h2>How does a 2nd mortgage work in Canada?</h2>
<h2>Requirements for a Second Mortgage</h2>
<h2>Types of second mortgages</h2>
<h3>Home equity Loan</h3>
<h3>Home equity line of credit (HELOC)</h3>
<h3>Refinance your mortgage</h3>
<h2>Advantages and Disadvantages of a Second Mortgage</h2>
<h3>Pros</h3>
<h3>Cons</h3>
<h2>How do you qualify for a 2nd mortgage?</h2>

Unlocking your finances

Crunching the numbers

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House deposit vs down payment

Getting mortgage ready

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What is home equity and how does it work?

What is a second mortgage and how does it work?

Your home search starts here.

Real Estate, Explained

Getting the essentials

Making your move

Closing with confidence