Your questions, answered honestly

No. A HESA is not a loan, a mortgage, or any other form of debt instrument. There's no monthly payment, no interest rate, and no creditor relationship. The transaction is structured as an equity investment in your property and HEQ becomes a financial partner in your home's future value, not a lender.

HEQ does register a security interest against your property, similar to how a mortgage would be registered, but this only secures HEQ's investment. You continue to own your home, live in it, and make all decisions about it.

HEQ can provide an Initial Payment to you between $50,000 and $500,000, typically representing 5.0% to 17.5% of your home's current appraised value (your Investment Percentage).

The easiest way to find out how much you may be eligible to access is to use our “Get an estimate” function. Simply enter a few simple details about your home to receive an instant estimate.

HEQ's share depends on which direction your home's value moves from the start date of your HESA.

If your home's value increases, HEQ shares in four times your Investment Percentage — this is called your HEQ Percentage. For example, if your Initial Payment equals 10% of your home's value, HEQ's share of any increase is 40%. If your home's value decreases, HEQ's share is equal to your Investment Percentage. So, in that same example, HEQ would share in 10% of any decrease.

You remain the sole owner of your home. A HESA does not make HEQ a co-owner, and you continue to enjoy all the benefits of homeownership, including living in your home, making decisions about it, and maintaining eligibility for applicable principal residence tax benefits and exemptions.

No. HEQ only shares in the change in your home's value set at the beginning of your HESA. Any equity you build by paying down your mortgage over time belongs entirely to you, as it should!

At the start of your HESA, an independent appraiser establishes your home's Appraised Home Value. HEQ then applies a 5.0% downward adjustment, the Risk Adjustment, to arrive at your Starting Agreed Value, which is the baseline used to measure any future change in your home's value. This adjustment accounts for the natural uncertainty in any single appraisal and lets HEQ move forward with your HESA without requiring multiple costly appraisals up front. Note that your existing equity is protected from the start of the HESA.

Example: If your home is appraised at $1,000,000, and a 5.0% Risk Adjustment is applied, your Starting Agreed Value would be $950,000.

HEQ works with owner-occupied, single-family homes, semi-detached homes, and freehold townhomes where you live for at least 180 days a year (i.e. your principal residence).

Condominiums and rental properties don't currently qualify. You will also need at least a 30% equity position in your home and a minimum credit score of 500.

HEQ primarily serves the Greater Toronto Area, including Toronto, Mississauga, Brampton, Vaughan, Markham, Oakville, Burlington, Richmond Hill, Oshawa, Ajax, Whitby, Pickering, Newmarket, and Aurora. We may consider other Ontario properties outside this area on a case-by-case basis.

Yes, you can have a HESA while keeping your existing mortgage. HEQ's HESA will sit behind your current mortgage as a second position registration. To qualify, the combined amount of your outstanding mortgage balance and HESA advance must be 75% or less of your home's current appraised value.

Yes. A HESA can be a good fit for homeowners with significant home equity who don't fit the traditional lending mold, and HEQ looks at your overall financial picture rather than income alone.

Yes. However, all registered owners of the property need to sign the HESA, and if you have a spouse who isn't on title, their consent will typically be required as well.

Qualifying for a HESA does involve a look at your credit profile. You will need a minimum credit score of 500, however, because a HESA is not a loan, it does not add a new monthly debt obligation to your credit profile the way a mortgage or line of credit would.

A typical HESA takes about 30 to 45 days from application to funding, though this can vary depending on appraisal scheduling, legal review, and the complexity of your title. In broad strokes, the process includes an initial eligibility review, application approval, an independent third-party appraisal, legal review and signing, security registration, and the transfer of funds directly to your bank account. We work to keep the process as simple and efficient as possible while ensuring everything is completed properly.

Every appraisal used for your HESA, at the start and at settlement (if required), is completed by an independent, licensed appraiser. If you believe an appraisal does not fairly reflect your home's value, you can request a second appraisal from a different appraiser. If the two appraisals land within 10% of each other, the value used is at the midpoint between them. If they differ by more than 10%, the matter is resolved through a straightforward arbitration process.

As a HEQ homeowner, you will continue to live in your home as your primary residence, keep it in good condition, stay current on your mortgage, property taxes, utilities, and insurance, complete a brief annual check-in with HEQ, and let us know about any significant changes. In short, most of what's expected of you is what a responsible homeowner is already doing.

You are required to maintain hazard insurance covering at least the full replacement cost of your home, including fire and other standard hazards, and to name HEQ as a mortgagee and/or additional interest on your policy, a routine step your insurer can handle for you.

You are expected to keep your home in good condition, ordinary wear and tear aside. If a significant maintenance issue that goes beyond normal wear reduces your home's value and is not addressed during your HESA term, HEQ may apply a Maintenance Adjustment, a proportionate increase to the exit value of your home, so that HEQ does not share in a decline caused by neglect rather than market conditions. This is based on an independent inspection and appraisal and typically comes into play when the cost of the issue exceeds $10,000.

The Renovation Adjustment protects the value you personally create through home improvements. If you spend at least $25,000 on a qualifying renovation, with HEQ's advance written consent, the required permits, and before-and-after photo documentation, an independent appraiser determines how much value the renovation actually added, and that increase is excluded from what HEQ shares in at settlement.

It's based on the value the renovation adds, not simply what you spent, so it's worth discussing any major project with HEQ before you begin.

You are always free to sell your home at any time during your HESA. However, a HESA is designed as a long-term solution, and the benefits of the agreement are best realized over time. The first three years of the agreement are considered the Restriction Period. If you sell your home during this time and the value has gone down, HEQ does not participate in the decrease.

Your settlement with HEQ will be based on the starting Appraised Home Value, as determined when the agreement began. This period helps ensure the HESA is used as intended — as a long-term partnership for homeowners who plan to remain in their home for several years.

Your HESA is tied to your specific home and its registered owners, so please let HEQ know promptly if any of the following happen: you decide to sell or refinance, you fall behind on your mortgage, taxes, or utilities, you file for bankruptcy, a lien is placed on your home, your home experiences fire or other damage, you are planning major renovations, or you go through a divorce or separation that changes who's on title.

HEQ charges a single, one-time Transaction Fee of 3.90% of your Initial Payment, deducted from your Initial Payment at closing. There are no ongoing fees, no annual charges, no interest, and no hidden costs for the life of your HESA.

No. When you sell your home, you are responsible for the usual costs of any home sale – real estate commissions and legal fees, for example – and HEQ does not add any additional costs on top.

You are responsible for the third-party costs tied to your HESA, including your home appraisal, any required inspections, and settlement-related costs such as title search and security registration fees. We will provide you with the exact figures before closing, and they are deducted from your Initial Payment rather than billed separately. HEQ works hard to keep these costs reasonable so more of the value you access stays with you.

A HESA with HEQ has a term of up to 10 years, giving you time to use the funds while remaining the sole owner of your home. However, you can choose to exit your HESA at any time by selling your home or with a Homeowner Buyout. At the end of the 10-year term, you will need to either sell your home, refinance to settle the agreement, or in certain circumstances, discuss renewing your HESA with HEQ.

When you sell your home or otherwise settle your HESA, an independent appraisal (or your actual sale price) establishes your home's Ending Agreed Value. That value is compared to your Starting Agreed Value to determine the change, and HEQ's share of that change is calculated using the agreed-upon HEQ Percentage. You then pay HEQ your original Initial Payment back, adjusted up or down by HEQ's share of the change in value.

Yes, you are not required to sell your home to end your HESA, and there is no prepayment penalty. You can complete a Homeowner Buyout at any time by giving HEQ at least 60 days' notice. HEQ arranges an independent appraisal to value your home at that time, calculates the settlement amount the same way as it would for a sale, and you pay that amount to close out the agreement.

One important difference from a sale: with a Homeowner Buyout, HEQ won't share in a drop in your home's value. That's because a HESA is a true partnership, HEQ shares in a loss the same moment you do, which happens when you sell your home on the open market and experience that loss yourself, not when you are choosing to buy out HEQ's position.

The funds you receive through your Initial Payment are not considered income, you receive them tax-free.

As you also remain the full legal owner of your home throughout your HESA, you generally continue to be eligible to claim the principal residence tax exemption, the same as any other homeowner. Every situation is different, so we recommend speaking with a tax professional about how your Initial Payment and any eventual settlement amount apply to your specific circumstances.