Put your home equity to work.
HELOC Calculator
Estimate how much you can borrow with a home equity line of credit and what the interest-only payment would be, based on Canada's 65% standalone and 80% combined lending limits.
Your home equity today: $400,000. HELOC rates are variable and typically sit around prime + 0.5%.
Available HELOC credit
A home equity line of credit lets you borrow against the equity you've built, drawing funds as needed and paying interest only on what you actually use. Unlike a regular loan, you don't receive a lump sum — you get a revolving limit you can draw down, repay, and draw again, much like a credit card secured by your home. That flexibility is why HELOCs are popular for renovations, tuition, an investment opportunity, or simply a low-cost emergency backstop.
The two limits that cap your HELOC
Canadian rules set two ceilings. A standalone, revolving HELOC is capped at 65% of your home's appraised value. When the HELOC is bundled with your mortgage, the total you can owe against the property is capped at 80% of value. Your available credit is whichever limit leaves less room: the lower of 65% of value, or 80% of value minus your current mortgage balance.
A worked example
Say your home is worth $800,000 and you still owe $400,000. The 65% standalone limit is $520,000, while the 80% combined limit is $640,000. Subtract your $400,000 mortgage from the combined limit and you're left with $240,000 of HELOC room — the smaller figure, so that's your available credit. Draw the full $240,000 at 6.45% and the interest-only payment is roughly $1,290 a month. Enter your own numbers above to see your exact result.
Use the flexibility, mind the risk
HELOCs carry a variable rate tied to prime, so your payment rises whenever the Bank of Canada raises rates. And because most lenders require only interest each month, nothing forces you to repay principal — which makes it dangerously easy to carry a balance for years. Treat your HELOC like a tool with a plan: set your own repayment schedule, avoid using it for everyday spending, and compare the all-in cost against a fixed second mortgage or a full refinance before you commit.
Frequently asked questions
How much can I borrow on a HELOC in Canada?
A standalone (revolving) HELOC is capped at 65% of your home's appraised value. When the HELOC is combined with your mortgage, total borrowing against the home cannot exceed 80% of its value. Your available credit is whichever of those two limits leaves less room after subtracting your current mortgage balance — so as you pay down your mortgage, your HELOC room grows.
How are HELOC payments calculated?
Most Canadian HELOCs require an interest-only minimum payment at a variable rate tied to prime. The minimum is simply your outstanding balance multiplied by the annual rate and divided by 12. For example, $100,000 drawn at 6.45% costs about $538 a month in interest. You can repay principal at any time without penalty, and you only pay interest on the amount you've actually used — not your full limit.
Is a HELOC a good idea?
A HELOC offers flexible, low-cost access to your home equity for renovations, an emergency fund, or investing. The risks are that the rate is variable, so your payment rises when prime rises, and that the interest-only minimum makes it easy to carry a balance indefinitely. A HELOC works best when you have a clear repayment plan and the discipline not to treat available credit as free money.
HELOC or refinance — which is cheaper?
A refinance usually carries a lower interest rate than a HELOC and locks it in, but it resets your whole mortgage and may trigger a prepayment penalty to break your current term. A HELOC costs slightly more in rate but is flexible: you draw only what you need, repay on your own schedule, and pay no penalty. Refinances suit large, one-time needs; HELOCs suit ongoing or uncertain ones.
Can I get a HELOC if I still have a mortgage?
Yes — most HELOCs sit behind an existing mortgage as a second charge on the property. The combined 80% limit means your mortgage and HELOC together can't exceed 80% of the home's value, so the more equity you've built, the larger the HELOC you can qualify for. You'll still need to pass the lender's income and credit checks.
Related tools & guides
Refinance Calculator
Compare tapping equity via a HELOC versus refinancing your mortgage.
Debt Consolidation
See if rolling high-interest debt into your home lowers your payments.
Mortgage Calculator
Model your primary mortgage payment and amortization.
Canadian Bank Rates
Check the current prime rate that drives HELOC pricing.
Prepayment Calculator
See how paying down your mortgage frees up HELOC room.
Mortgage Glossary
Understand equity, revolving credit, and prime rate.
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