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What can you use a home equity loan for?

What can you use a home equity loan for? 

A home equity loan is one of the most versatile financial tools you have at your disposal as a homeowner in Canada. However, pinpointing what to use a home equity loan for can be challenging for some people. As such, this begs the question: what can you use a home equity loan for, and how can it improve your financial situation? 

A couple receiving their new house keys

Use home equity loans for home renovations 

One of the most common uses of a home equity loan is home renovations. A home equity loan is suitable for home renovations as it gives you access to substantial funding, which can be used to finance a major home remodel. Instead of digging into your savings or taking out an unsecured loan, you can use the equity available within your home to give your home a facelift.

 You may be eligible to get a home equity loan at Alpine Credits. Get a free estimate today.

Use home equity loans for business investments 

If you are a homeowner and an entrepreneur, a home equity loan can be useful. The one thing that most entrepreneurs worldwide need is capital to finance business expenses, a new project, or labour costs. Fortunately, homeowners have a simple solution to this problem with home equity loans. 

As a homeowner with a considerable amount of equity available in your home, you can use this equity to access a sizeable amount of capital. Moreover, given that the funds don’t have any restrictions, you can use them to fund any of your business needs.  

Use home equity loans for retirement planning 

A home equity loan can also help with retirement planning for homeowners transitioning out of their long-term jobs. Retirement is an exciting time for Canadians, where they can finally enjoy the fruits of their labour and live life to the fullest. As such, it’s important to know that you are financially protected during this time, and a home equity loan can support that.  

The funds can be directed towards a retirement fund which can be tapped into later to finance a vacation, pay off any personal debts, or create an emergency fund for your loved ones. 

Use home equity loans for loan consolidation 

A home equity loan can be an effective tool to consolidate your outstanding loans, so paying them off becomes a lot easier. Cash from a home equity loan can be used to pay off any outstanding debts from multiple loan obligations, reducing the stress that comes with managing multiple loans. What’s more is that a home equity loan from an alternative lender is much easier to access than a traditional home equity loan, which considers your credit score and income history. Financial solutions specialists at Alpine Credits are mainly concerned with how much equity is available in your home.  

 You may be eligible to get a home equity loan at Alpine Credits. Get a free estimate today.

Use home equity loans to pay for tuition 

As a parent, there’s nothing more important than making sure the futures of your children are secured and that they have the tools to live the best life possible. A home equity loan can give you the financial coverage you need and the flexibility to pay it off over time so you can focus on what matters to your children right now. 

Use home equity loans to make investments 

The stock market can provide many opportunities to increase wealth. However, simply setting aside a small percentage of your paycheque each month may not leave you with enough finances to invest in equities. You may use your home equity to access a large amount of funds, allowing you to have enough to invest in companies and investments of your choice without having to wait to save enough.  

Use home equity loans to pay medical bills 

Your family’s health and safety are very important, and it’s good to ensure they are covered in that regard. The funds from a home equity loan can help you pay off any recurring monthly medical bills for a medical services plan. Moreover, the money can also be used in case a family member has had a medical emergency and needs to undergo a medical procedure like surgery. Given that these procedures can be quite costly, a home equity loan can support the cost of the procedure, medication or the income lost from needing to take time off after the procedure 


Home equity loans can help Canadian homeowners fulfill their financial goals without compromising their financial stability. Rather than leaving the equity in your home unused, it could be much more productive to make it work for you and use it to access money that will help you reach your financial milestones. With a home equity loan, not only do you get quick access to a substantial amount of funds, but you can also save on expenses that would have required you to dig into your personal savings.  

If you need access to home equity loans for any of these use cases, Alpine Credits can support you. Your income, credit history, or credit score do not affect your chances of getting approved for a home equity loan. Contact one of our Financial Solutions Specialists to get started. 

Frequently asked questions

Home equity loans can be used for various purposes, including home renovations, business investments, or to fund your children’s education.

Home equity loan funds are not restricted, and you can use the cash as you see fit. However, focus on using the money towards important financial goals and essential expenses.

At the end of the day, if you can make your loan payments comfortably and have enough funds left over to live a good life, then it doesn’t really matter what you use the cash for. However, it can help to speak to a financial advisor and discuss the best way to use these funds.

A home equity loan is a secured form of financing that uses your home as collateral, which means you need to have a home and must have built up substantial equity in your home to access one.