Find out how much equity you have in your home and what options are available to you before foreclosure. Free, instant, and completely confidential.
Knowing your equity position is the single most important step when facing foreclosure. It determines which options are available to you — from private refinancing to a pre-foreclosure sale. Here is how to get the most accurate estimate.
Start with recent comparable sales in your neighbourhood — homes of similar size, age, and condition that sold in the last 3-6 months. You can find this data on Realtor.ca, HouseSigma, or Zolo. For a more precise number, request a free Comparative Market Analysis (CMA) from a local real estate agent, or order a professional appraisal. When in doubt, use a conservative estimate — it is better to underestimate your value and be pleasantly surprised than to overestimate and plan around equity that does not exist.
Mortgage arrears include every missed payment plus any penalty interest your lender has charged. This is different from your total mortgage balance — it is the amount you are behind on. Check your most recent mortgage statement or demand letter from your lender. If foreclosure proceedings have already started, the Statement of Claim or Notice of Sale will list the total arrears amount including accrued interest. Include all arrears for all mortgages registered against the property.
When a lender starts foreclosure proceedings, they hire lawyers — and those legal costs are added to what you owe. In Alberta, legal fees for a standard foreclosure can range from $3,000 to $10,000 or more. In Ontario and BC, power of sale legal costs are typically $3,000 to $8,000. These fees accumulate throughout the process, which is why acting early saves money. Every month of delay can add hundreds or thousands in legal costs that reduce your equity.
Your equity position directly determines which doors are open to you. With significant equity (above 20%), private lenders may refinance your mortgage to stop foreclosure entirely — even with bad credit. With moderate equity (5-20%), a pre-foreclosure sale can recover funds for you to start fresh, rather than losing everything at a bank-forced auction. Even with little or no equity, you may still have options — a lender may accept a negotiated settlement, or provincial redemption periods may give you time to recover. The key is knowing your number so you can act with confidence.
Understanding your equity in a foreclosure situation can be confusing. Here are the questions we hear most.
Yes, in many cases. Foreclosure does not automatically mean your equity is gone. If your home is worth more than the total of your mortgage balance, arrears, legal fees, and other liens combined, you have equity. Many Canadian homeowners in foreclosure have significant equity they can recover through a pre-foreclosure sale or private refinancing.
In a judicial foreclosure (common in Alberta), the bank applies to take ownership of your home — and keeps all equity. In a power of sale (Ontario, BC), the bank sells the home and returns any surplus funds to you after paying off the mortgage, arrears, legal fees, and sale costs. However, bank-forced sales often sell below market value, reducing the equity you recover. A controlled pre-foreclosure sale almost always recovers more.
This calculator provides an estimate based on the numbers you enter. Its accuracy depends on how precise your inputs are — particularly your home's current market value. For a professional assessment, we recommend getting a Comparative Market Analysis from a local agent and checking your most recent mortgage statement for exact balances. We also offer free, confidential assessments to help you understand your true position.
Absolutely. Equity is your most powerful tool in a foreclosure situation. If you have at least 20% equity, private lenders may provide refinancing to pay off your arrears and stop foreclosure — even if banks have declined you. With less equity, a pre-foreclosure sale lets you pay off the mortgage and walk away with cash rather than losing everything. The first step is knowing exactly how much equity you have.
Understanding your equity position is the first step to stopping foreclosure. Get a free, confidential assessment from our team — no obligation, no pressure.