Canadian HELOC Calculator

Your maximum home equity line of credit, and what a drawn balance actually costs

What do you want to work out?

Your home

$

Current market value, not what you paid.

$
Maximum HELOC
$240,000
Limited by the 80% rule
Your home equity
$400,000
50.00% of the home's value

Both limits, and which one binds

HELOC limit at 65% of value$520,000.00
Total secured lending limit at 80% of value$640,000.00
Less your mortgage balance-$400,000.00
Room left under the 80% rule$240,000.00
Maximum HELOC$240,000.00
Combined loan-to-value if fully drawn80.00%
The 80% rule binds. Your mortgage already uses part of the combined room, so you reach the 80% ceiling before the 65% HELOC cap.

Lender rules vary

The 65% and 80% figures are federal ceilings, not an approval. Every lender applies its own qualifying test on top, including a stress test at a higher rate than you would actually pay. Readvanceable products that combine a mortgage and a HELOC in one account have their own limits, and some lenders cap the revolving portion below 65%. Treat the number above as the most you could possibly get, not what you will be offered.

How a HELOC works in Canada

A home equity line of credit is revolving credit secured against your home. You borrow, repay and reborrow up to a limit, at a variable rate tied to prime.

The two limits

Canada applies two separate caps and the smaller one wins. The revolving HELOC portion on its own cannot exceed 65% of the home's value. That rule applies to the line of credit itself regardless of what else is registered against the property. Separately, your total secured lending, mortgage plus HELOC together, needs at least 20% equity behind it, which caps the total at 80% of the home's value. Which one binds depends on your mortgage. With no mortgage, the 65% cap is the ceiling: a $800,000 home supports a $520,000 HELOC, not $640,000. Once your mortgage exceeds 15% of the home's value, the 80% combined rule takes over and every extra dollar of mortgage reduces your HELOC room one for one.

The interest-only trap

A HELOC's minimum payment is normally just the month's interest. On $50,000 at 6.45% that is about $269. Pay exactly that and the balance is still $50,000 in ten years, having cost you roughly $32,000 along the way with nothing to show for it. This is the single most important thing to understand about a HELOC. The low minimum payment is a feature for cash-flow emergencies and a trap for everything else. The comparison table above puts numbers on it: paying interest only versus a real payment on the same balance. If you are using a HELOC for something with a defined cost, a renovation, a car, consolidating debt, set a fixed monthly payment that clears it on a schedule and treat the minimum as irrelevant.

A variable rate you cannot lock

HELOC rates are quoted as prime plus a spread and move whenever the Bank of Canada moves. Unlike a variable-rate mortgage, where the payment often stays fixed and the split between interest and principal shifts, a HELOC's interest-only payment changes directly with prime. That cuts both ways. When rates fall your cost falls immediately. When they rise, a balance that was comfortable can stop being comfortable with no warning and no fixed-payment cushion. Stress-test any large HELOC balance at two or three points above today's rate before you draw it. Some lenders let you convert part of a HELOC balance into a fixed-rate, fixed-term portion. If a chunk of your balance is really long-term debt rather than a revolving float, that is usually worth asking about.

Assumptions

The borrowing power figure applies only the two federal ceilings. It ignores income, credit score, debt service ratios and the lender's stress test, all of which can reduce the amount you are actually offered and none of which can increase it. The payment model assumes your rate stays at prime plus your spread for the whole payoff period, and that you make the same payment every month with no further draws. Adding to the balance restarts the clock. Interest is calculated monthly on the opening balance. Most Canadian HELOCs accrue daily and charge monthly, which produces a very slightly different figure.

Key terms to know

HELOC (Home Equity Line of Credit)Loan-to-Value (LTV)Interest-Only PaymentPrime RateHome EquityLine of Credit

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Frequently Asked Questions

Last updated: July 2026

Two federal rules apply and the smaller number wins. The revolving HELOC portion on its own is capped at 65% of your home's value, and your total secured lending, mortgage plus HELOC, needs at least 20% equity behind it, which caps the total at 80% of the home's value. On an $800,000 home with no mortgage the limit is $520,000, not $640,000. With a $400,000 mortgage it drops to $240,000.

The 65% rule applies to the line of credit by itself. The 80% rule applies to everything secured against the property together. With a small mortgage the 65% cap is what stops you; once your mortgage exceeds 15% of the home's value the 80% rule takes over and every extra dollar of mortgage reduces your HELOC room one for one. The calculator shows both limits and says which one is binding.

Reviewed by

Educational tool - estimates only. Not individualized financial, investment, tax, or legal advice. Using it does not create an advisor-client relationship. Rules and figures change; verify against current CRA sources and consult a qualified professional. Editorial policy →