Use Your Home Equity

Overview and Advice Home Equity

Your home is one of your most valuable assets, and you can use your equity to meet ongoing credit needs. Compare and evaluate your options with:


Learn more about mortgages:

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With a CIBC Home Power Mortgage® or CIBC Home Power Plan®, you can secure a lower interest rate. With two great borrowing options available, you can select the one that best suits you and use the funds for home renovations, vacations, investments - or anything else you may want.

1. Mortgage refinance

The CIBC Home Power Mortgage option is an ideal way to borrow for your specific needs, like a new deck or kitchen.

You can:

  • Easily budget with a structured payment plan and an assured pay-off date
  • Add the payments to your current mortgage amount for your convenience
  • Access up to 80% of your home's appraised value1

All you need is at least 20% equity in your home to get a CIBC Home Power Mortgage refinance working for you.

2. Combined borrowing solution

The CIBC Home Power Plan2 option is a great way to borrow if you want to consolidate all of your personal credit under one simple, low-interest and secured borrowing solution.

You can:

  • Use the equity in your home to access a higher credit limit on your line of credit at a lower interest rate
  • Have ongoing access to money with a line of credit and interest-only payment options
  • Have more money available to you on your line of credit as you pay down your mortgage3
  • Have the option of having just a line of credit or combining with a mortgage to enjoy the benefits of both a variable and fixed rate within your total available credit limit

The minimum borrowing amount for both the CIBC Home Power Mortgage and the CIBC Home Power Plan is $10,000. For the CIBC Home Power Mortgage you can access as much as 80% of the value of your home and for a CIBC Home Power Plan you can access an approved percentage of the value of your home.

The minimum borrowing amount for both the CIBC Home Power Mortgage and the CIBC Home Power line of credit is $10,000 and you can access as much as 80% of the value of your home.


Home equity is the current market value of your home, minus any outstanding debt registered against your property, like your mortgage balance.

Here's an example of what's available if you have a $50,000 mortgage, no other encumbrances on the property, and you want to borrow up to 80% on a home appraised at $200,000:

80% of the value of your home: $160,000
Less the outstanding mortgage: $50,000
Funds available to be borrowed: $110,000

Trademarks and Disclaimers

CIBC lending criteria apply.

1 Less what you currently owe on your home, or other encumbrances. Additional conditions and restrictions apply.

2 CIBC Home Power Plan is not available in Nunavut. Minimum borrowing amount is $10,000. Minimum equity in your home is required to qualify for the CIBC Home Power Plan. Additional conditions and restrictions apply. Ask for details.

®/TM Trademarks of CIBC.

The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.

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Renovating a home can improve the value of the property and the quality of your life. Whether it's an addition to the house or just a face-lift for a room, you'll need to secure your finances to give yourself a budget to work with.

Use the power of your home equity to secure a lower interest rate and help finance your renovation.

Renovations – what renovations add value?

What types of renovations add value to your home?

  • Improving the kitchen
  • Adding or remodeling a bathroom
  • Creating a master bedroom with an en suite bath and/or walk-in closet
  • Adding a family room, especially on the main floor
  • Creating a sun room

What types of renovations are value-neutral to your home?

  • Adding a swimming pool, sauna or hot tub
  • Installing a central vacuum system
  • Reducing the number of bedrooms to fewer than three
  • Installing paving stones in the driveway

Before you renovate

There are lots of things to consider before you renovate your home. Here is a general list to help you plan your next project.

  • Find out if a building permit is required
  • Find out about federal, provincial and municipal government programs that offer subsidies or tax credits for certain renovations
  • Look up the "Information and Referral to Federal Programs and Services" listing in the blue pages of your telephone directory; a simple telephone call could save you dollars on your home renovation
  • Make sure your renovation plans meet municipal/zoning bylaws and fire regulations
  • Carefully research any professionals, trades people or contractors you hire to do the renovation
  • Ask your friends, neighbours and co-workers for recommendations
  • Draw up a contract for any work that is to be done

The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.

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Mortgage refinancing offers many benefits, from getting a better interest rate to lowering your regular payment. One of the most popular reasons why people refinance is to access their home’s equity to serve as collateral for a home equity loan or line of credit.

Find out if mortgage refinancing is right for you.

Home equity vs. mortgage?

When you start the process of refinancing, you might become confused by all the different terminology. Mortgages and home equity are directly related to each other, but aren’t the same.

  • Home mortgage: Loans secured by your house and paid in installments based on the period of time as determined by yourself and CIBC. The mortgage secures your promise to repay the home mortgage.
  • Home Equity is the difference between your home's fair market value and the outstanding balance of the mortgage. In other words, it’s the amount you have already paid against the value of your house. Therefore, your property's equity increases as you make more mortgage payments.

What are home equity loans and lines of credit?

Mortgage refinancing allows you to use the home equity you’ve established in the form of home equity loans and lines of credit, available for home improvements, college tuition, major purchases, etc.

Determine how much equity is available in your home with our home equity calculator.

  • A home equity loan is a secured loan paid in one lump sum based on the amount of equity you have in your home. Your home is used as collateral for such loans.
  • A home equity line of credit can be combined with a mortgage under a CIBC Home Power Plan. Rather than giving you the loan up front in a lump-sum, you’ll have ongoing access to funds through a line of credit. As you pay down your mortgage each month, you build equity in your home which automatically increases your line of credit amount up to your CIBC Home Power Plan limit.

It’s important to take into account factors such as interest rate and how long you plan to remain in your home before deciding if a home equity loan or or CIBC Home Power Plan is right for you.


The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.

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High interest debt on credit cards, auto loans, or other consumer loans can be difficult to pay off and may create a barrier to your financial goals. However, if you’re a homeowner, you have additional options to help you manage your debt, including a debt consolidation mortgage and home equity loan or line of credit.

Refinance with a debt consolidation mortgage

As a homeowner, one way to start managing some of your higher-interest debt is to refinance your existing mortgage with a debt consolidation mortgage. For example, the CIBC Home Power Mortgage® allows you to borrow additional money on your mortgage so you can consolidate your debts into one simple payment. That way you can easily budget with a structured payment plan and an assured pay-off date.

Find a mortgage that’s right for you using our mortgage product selector.

Debt consolidation home equity loan or line of credit

Homeowners who are looking to consolidate their debts have the option of using their home equity to secure a loan or line of credit. A home equity loan or line of credit allows you to obtain a lower interest rate and a higher credit limit by using the equity you’ve built in your home as security. By consolidating your debts into a home equity loan or line of credit, you’ll have the convenience of one consolidated payment rather than having several bills from different creditors. This makes bill payments more manageable and the rate is usually lower, helping you pay off your debts sooner. With a home equity line of credit such as the CIBC Home Power Plan®, you’ll enjoy additional benefits such as making interest payments only on the funds you use, not your total credit limit, and having ongoing access to funds up to your authorized credit limit.

Find out more about using your home equity.

Benefits of debt consolidation mortgages and debt consolidation home equity loans or lines of credit

  • Interest rates on mortgages and home equity loans or lines of credit are often much lower than those on credit cards and consumer loans
  • Making a single payment to your debt consolidation mortgage or home equity loan or line of credit is much easier than making multiple payments to credit cards and other lenders

Learn more about consolidating your debt with the CIBC Home Power™ Mortgage or CIBC Home Power Plan.

The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.

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A mortgage is a big commitment. Most mortgages are paid over 25 years but we have some tips to help you pay yours off faster. Reducing the number of years you make mortgage payments can add up to big savings.

There are several ways to “pay down” your mortgage and get out of debt faster.1

  1. You can increase your payment amount when you arrange your mortgage, or at any time during the term. This allows you to pay down your principal faster.

    For example, if you increased your mortgage payment amount by $170 from $830 to $1,000 you could save almost $48,000 in interest over the entire amortization period of your mortgage. You could also own your home about 8 years earlier.

  2. You can make payments more frequently which saves you money in interest charges over the long run as it allows you to pay down your principal faster.

    For example if you made accelerated bi-weekly payments of $415 instead of monthly payments of $830, you could save almost $27,000 in interest over the entire amortization period of your mortgage. This would allow you to own your home about 4.5 years sooner.

  3. You use your pre-payment privilege to make a lump sum payment. A lump-sum payment is applied directly to your outstanding principal if there is no outstanding interest owing. This saves you money over the course of your mortgage.2

    For example, if you made a $1,000 lump-sum payment, you could save almost $28,350 in interest over the entire amortization period of your mortgage. This would allow you to own your home about 4 years sooner.

  4. You can pay as much as possible at renewal. All CIBC Mortgages become open at renewal. This means you can pay as much as you want on your mortgage before you renew.

    For example, if you chose 5-year, fixed-rate terms, and made a $10,000 lump-sum payment every time your mortgage came up for renewal, you would save about $37,481 in interest over the entire amortization period of your mortgage, allowing you to own your home about 6 years sooner.

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1 For illustration purposes only. Payment option scenarios assume a 5-year closed, fixed-rate mortgage of $120,000 with a 25-year amortization and a constant annual interest rate of 6.85% over the entire life of your mortgage compounded semi-annually, monthly payments of $830 and assumes no additional payments. Actual rates will vary, which will affect your payment amount, your mortgage payout date and the amount you could save.

2 Payment options are subject to the terms and conditions of your mortgage. In some cases, making a prepayment on your mortgage or paying off your mortgage early can lead to a prepayment charge, depending on the type of mortgage you have. Prepayment charges may also apply if you renew early or refinance your mortgage. Please contact us in advance to discuss all your options.


The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.


Get more from your home. Great tips and advice from CIBC and Scott McGillivray, HGTV’s Income Property host. Learn more