Equity lending refers to the use of a borrower's equity in their home as collateral for a loan. In Ontario, equity lending is typically offered by banks and other financial institutions as a way for homeowners to borrow against the value of their home to finance various expenses, such as home renovations, debt consolidation, or other large purchases.

To be eligible for equity lending, a borrower must have equity in their home, which is the difference between the value of the home and the amount of any outstanding mortgages or liens on the property. The borrower can then borrow against this equity, up to a certain limit, and use the funds for any purpose they choose.

There are several types of equity lending products available in Ontario, including home equity lines of credit (HELOCs), second mortgages, and refinance loans. These products differ in terms of how the funds are disbursed and how the loan is repaid, and they may have different interest rates, fees, and other terms and conditions.