The portion of a property’s value that the homeowner actually owns — calculated as the current market value minus any outstanding mortgage or secured debt. Equity grows as property values rise and as mortgage principal is paid down. In Ontario, homeowners may access equity through refinancing, a home equity line of credit (HELOC), or a second mortgage. Equity is a cornerstone of household wealth in Canada: Statistics Canada reports real estate represents the largest asset for most Canadian families.
Synonyms:
home equity|property equity