Leverage Home Equity for Investment Property: A Real Client Case Study

Homeowners across Ontario are looking for smarter ways to grow their wealth. For many, the answer is already built into their home. This case study explores how one Toronto couple turned their existing equity into an opportunity to scale their real estate portfolio without sacrificing future flexibility.

Client Profile

Our clients are dual-income homeowners in Toronto with excellent credit scores (761 and 855) and a combined annual household income of $409,000. Their primary goal was clear: use their home equity to purchase an investment property.

The Challenge

The clients wanted to unlock capital while maintaining financial control. It was important to avoid a rigid mortgage structure that would limit their ability to act on future opportunities. They needed a flexible, reliable solution that protected their long-term borrowing power.

The Strategy: Leverage Home Equity for Investment Property

Rather than opting for a one-size-fits-all refinance, we designed a two-part solution tailored to their financial goals:

• $500,000 first mortgage at a fixed rate of 5.49%

• $300,000 Home Equity Line of Credit (HELOC) at Prime + 1.5%

• Combined loan-to-value (LTV): 70%

• Lender: Equitable Bank

This structure gave the clients a locked-in rate on their core debt and a flexible HELOC that required no payments until used. The result was access to liquidity without immediate obligation, ideal for time-sensitive investments.

The Results

• Total Financing Secured: $800,000

• Combined LTV: 70%

• Time to Fund: Less than 30 days

• Use of Proceeds: Down payment on a new investment property

Why This Approach Worked

This was more than a mortgage. It was a strategy. By evaluating the full financial landscape and understanding the clients’ long-term goals, we were able to structure a solution that met their needs today while preserving flexibility for tomorrow.

The combination of a low LTV and a dual-structure mortgage gave them confidence and control. They were able to act quickly, fund their new property, and keep capital available for future investments.

Thinking of Leveraging Your Equity?

Whether you are planning to buy a second property or want to explore your financing options, we can help you build a smart strategy that goes beyond the transaction. Every homeowner’s financial picture is different. Our job is to structure the right solution for yours.

Let’s talk.

Eduardo Pontes

Managing Director & Principal Mortgage Broker Level 2 (#M09002730)

Seventy Seven Park Mortgages, Brokerage Licence #13004

416.455.3800

epontes@seventysevenpark.ca