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Ally Home Equity Loan March 2024

Ally Bank does not offer a home equity loan or home equity line of credit. Ally currently offers a cash-out refinance mortgage and a personal loan.
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Home Equity LoanCurrently doesn't offer HELOCs
AmountDoesn't currently offer home equity loans
Min. Credit Score
See Ally's website for full terms and disclosures

Smooth online experience,

Widely accessible – available in all 50 states.

Offers a variety of non-home equity financial products including cash-out refinance mortgages.


Doesn’t offer home equity loans or HELOCs

No brick-and-mortar locations. Only offers online experience.

Ally’s online emphasis will be a plus for some people, it would not suit someone who prefers to bank at a brick-and-mortar location.

Does Ally Offer Home Equity Loans or HELOCs?

Ally does not offer home equity loans or HELOCs. The only form of borrowing against the equity in your home that Ally currently offers is a cash-out refinance mortgage. A cash-out refinance loan can be a good alternative to a home equity loan under certain circumstances. 

For borrowers with strong credit, a personal loan may also be worth considering as an alternative to a home equity loan. Because Ally doesn’t charge a fee for paying off a personal loan early, that borrowing option may give a borrower some of the flexibility associated with a HELOC, too. 

Who is Ally Bank

Ally Bank has been a pioneer in online banking since 2004. It offers a range of deposit products, like savings accounts and CDs. Ally Bank is also a place where consumers can find a variety of different loan products.

With over $140 billion in customer deposits, Ally has the resources to offer a range of competitive loan products. These include mortgages, auto loans, and personal loans. 

The bank emphasizes online, rather than branch-based, banking. This focus helps give Ally a nationwide presence that is convenient for consumers across the country.

Ally’s online tools also offer a user-friendly application process. The upshot, according to Ally, is an ability to close loan deals 10 days more quickly than the industry average. While Ally’s home equity offerings are limited, it has loan products that may appeal to some potential borrowers considering a home equity loan. 

Ally home equity loan alternatives

Cash-out refinance loan

Here are some of the key product features for Ally’s cash-out refinance loans, which, as described above, may be considered as an alternative to a home equity loan under some circumstances: 

  • Maximum loan-to-value (LTV) ratio:  This is the amount borrowed against the house as a percentage of the home’s current value. The maximum LTV ratio allowed for an Ally cash-out refinance loan is 80%.
  • Interest-rate range: Refinance rates are subject to change at any time and may vary with location. As of August 17, 2022, refinance rates on a 30-year loan in Ally’s home state of Utah ranged from an APR (annual percentage rate) of 5.78% to 7.46%, depending on the borrower’s credit status.
  • Minimum credit score: The minimum credit score for which Ally will consider a refinance loan application is 620.
  • Maximum and minimum loan amounts: Ally’s website does not list a minimum loan size. The maximum loan available is $4 million.
  • Length of loan terms. Ally offers fixed-rate loans with terms of 15, 20, and 30 years. 
  • Other features: Ally’s refinance loans have no application, origination, processing, or underwriting fees.

Ally personal loan

Because it has no prepayment fees, Ally’s personal loan is probably the best alternative that it offers to a HELOC. Ally does not provide nearly as many details about its personal loan products as it does for the mortgage refinance loans described above. However, some details it does provide include:

  • Fixed interest rates
  • No down payments
  • No fees for early repayment

How to Apply for Ally Loans

Ally offers a 100% online application process for both refinancing and personal loans. This includes the opportunity for applicants to enter some basic information to prequalify, without impacting their credit score. 

Based on their financial information, applicants will be presented with a range of loan options from which to choose. Once they make their selection, they may be asked to provide supporting documentation. Personal loans can be closed with electronic signatures, while refinance mortgages must be completed in person. 

Ally Expert and Consumer Ratings

To get a sense of how Ally is perceived in the marketplace, surveyed ten consumer and professional review sites. (Note that users who choose to comment or rate a company are not necessarily representative of all customers.) 

Ally’s mortgage operation received an average of 4.1 out of 5 stars on review websites. The bank got a 2.6 score on TrustPilot; but this score applied to Ally overall and not just to its mortgage services. 

The Better Business Bureau (BBB) assigns Ally an A rating. 

Ally Pros

For customers looking for a smooth online experience, Ally may be a good choice because that’s what the bank specializes in. Also, being available in all 50 states makes Ally widely accessible to potential customers.

Finally, Ally also offers a variety of other financial products, including deposit accounts, investments, and auto loans. This may appeal to customers looking for one-stop shopping across a range of financial needs. 

Ally Cons

Ally’s home equity offerings are limited to cash-out refinance loans. This may be a problem for customers who are looking for just a home equity loan or a HELOC. Also, while Ally’s online emphasis will be a plus for some people, it would not suit someone who prefers to bank at a brick-and-mortar location. 

Ally Alternatives

Don’t see what you want here? Other lenders offer home equity products that might be better for you. Remember to compare programs and pricing to get a good deal.