The Scotia Total Equity Plan is a parcel of credit products you can access by leveraging the equity you have in your home. This sounds more complicated than it is, really – this is really just a slightly fancier home equity line of credit (HELOC), meaning you can get low-interest credit that is secured by your house.
You’ll need to have at least 20% equity in your home to qualify, and you’ll be able to borrow up to 80% of that equity value in mortgages, or 65% in lines of credit. The key benefit of this is that secured credit is often significantly less expensive in terms of interest rates than unsecured credit. On the other hand, there is some risk involved, should things go badly.
Scotia Total Equity Plan (STEP) features
Here’s what the Scotia STEP Total Equity Plan looks like.
Why You Want It
Borrow up to 80% of your home's equity + Easy online loan management.
Special Features
- Do everything online with Scotiabank eHome
- Up to 3 mortgage solutions if split
Eligibility
- At least 20% equity in your home
Features
Bank Prime Rate
4.45%
Online Banking Access?
Cheques Access?
Debit Card Access?
ATMs Access?
In-Branch Access?
Protection Available
- Scotia Mortgage Protection
- Overdraft protection
Split Mortgage Available?
Scotia Total Equity Plan rating: 4.1 stars
The STEP Scotia Total Equity Plan gives you an easy way to take advantage of the value in your home, if you have at least 20% equity in it. There are limitations to how much you can borrow, however, which may not give you as much flexibility as you hope. And this is a credit product – while secured credit generally has lower interest rates than unsecured credit, it still isn’t free. You are still taking on debt on which you’ll be charged interest.
Scotiabank also has mortgage rates higher than some banks, and they don’t publicize the interest rates for personal loans or lines of credit on their website at all. You have to call and speak to a representative in order to find out what those rates will be.
Rating methodology
To calculate our Genius Ratings, we compare the features of the account or product in question with other similar products in Canada. We give each feature a score out of 5 based on that comparison. Once we’ve rated all the features, we run them through our proprietary algorithm to produce a final rating out of 5.
Learn more about our rating methodology.
The pros of the Scotia Total Equity Plan
If you’re looking to leverage the equity you have in your home, the Scotia Total Equity Plan has some features you may be interested in.
Pros
Borrow up to 80% of the equity of your home
Once approved, you can borrow up to 80% of the equity you have in your home in the form of mortgages, or 65% in loans or lines of credit. You can also get credit cards as part of your STEP, if you like. While you cannot borrow 100% of the value you have in your home, you still have access to a significant portion of it.
Once approved, you’re approved as long as you have your home
You only have to go through the STEP application and approval process once. If you use your STEP to borrow funds to do a home renovation one year, you’ll be able to borrow more later on for something else, without having to go through the approval process again. You’ll still only be able to borrow up to your STEP limit, of course.
Secured credit has lower interest rates
By using your home as collateral, you’ll be able to get credit at a lower interest rate than if you were getting unsecured credit. This can save you a great deal of money in interest over the course of paying those debts back. But even though secured credit is less expensive, it isn’t free, and you will pay at least some interest on the money you borrow.
Line of credit can be used for anything you want
Once you’re approved for a STEP line of credit, you can use that money for anything you want – a vacation, renovations, debt consolidation, or anything else you can think of. And when you pay it off, that credit will remain available for you to use as you see fit.
The cons of the Scotia Total Equity Plan
There are some issues with the Scotia Total Equity Plan, however, including a lack of some information, Scotiabank’s relatively high mortgage rates, and there being some risk involved.
Cons
Loan and line of credit interest rates are not available on their website
One of the primary reasons people want to leverage the equity they have in their home is to get a line of credit they can use for whatever expenses they like. This is more commonly known simply as a home equity line of credit, or HELOC. Scotiabank makes it difficult to find out what their HELOC and home equity loans interest rates are, asking that you call a representative to find out. This makes it inconvenient to do any real comparison shopping, which is a shame.
Scotia mortgage rates are higher than average
While you are able to use your STEP to borrow up to 80% of your home equity in mortgages…you might want to do some shopping around first. Scotiabank mortgage rates are on the high side. Other banks with better mortgage rates may offer similar financial products, and this could save you quite a lot in interest over time.
Must have at least 20% equity in your home
That Scotiabank requires that you have at least 20% equity in your home before you can be approved for a STEP isn’t actually that unusual. Most banks will have similar requirements. The fact is simply that you can’t leverage equity in your home if you don’t have any. If this is your situation, you’ll want to speak with your bank about unsecured loans, lines of credit, or mortgages, but be prepared to pay higher interest rates for these products.
There is some risk in securing credit with your home
Using your home as collateral for credit comes with a little risk. If your financial situation suffers some unexpected setbacks (such as losing your job, getting divorced, or what have you), you could find yourself in some trouble. If you secure a loan with your home, you risk losing your home if you are unable to pay that loan. Be sure to read all the fine print and fully understand your financial responsibilities and obligations before borrowing heavily against the value of your house.
Scotia Total Equity Plan alternatives
Interested in some alternatives to the Scotia Total Equity Plan? Here’s what a few other of Canada’s big banks have to offer.
 |  |  |  | |
|---|---|---|---|---|
| Account | Scotiabank Total Equity Plan (STEP) | BMO Homeowner ReadiLine | TD Home Equity FlexLine | RBC Homeline Plan |
| Genius Rating | ||||
| Why You Want It | Borrow up to 80% of your home's equity + Easy online loan management. | Get a flexible mortgage from a reputable company + Competitive interest rates. | Access low interest rates + Borrow up to 80% of your home’s value. | Take advantage of low interest rates + Flexible repayment options. |
| Bank Prime Rate | 4.45% | 4.45% | 4.45% | 4.45% |
| Online Banking Access? | | | | |
| Cheques Access? | | | | |
| Debit Card Access? | |  | See Issuer for Details | |
| ATMs Access? | | | See Issuer for Details | |
Show More | ||||
| See rates & details See more Scotiabank products Compare | Learn More See more BMO products Compare | Learn More See more TD products Compare | Learn More See more RBC products Compare |
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FAQ
What is a Scotia Total Equity Plan?
The Scotia Total Equity Plan (STEP) is a financial product offered by Scotiabank in which you secure credit by using the equity you have in your home as collateral. These are secured credit products that generally have lower interest rates than unsecured credit, but that also carry some risk, in that if you are unable to repay your obligations, you could lose what equity you have in your home.
Are equity loans a good idea?
If you are financially secure and are certain that you will be able to repay any credit you use, home equity loans are a way to get credit at a lower interest rate. If you are unable to repay those loans, however, you could lose whatever collateral you have put up as security. If you are unsure about your future financial stability, an equity loan may not be the best option.
How can I qualify for a Scotia Total Equity Plan (STEP)?
In order to qualify for a Scotia Total Equity Plan, you must have at least 20% equity in your home. This means you have paid off at least 20% of the value of your house. If you do not have 20% equity in your home, you will not qualify.
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
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