Home Equity & HELOC Calculator
How much of your home's equity can you actually borrow, under Canada's 80% total-lending rule and the 65% cap on a revolving line of credit, and what will it cost you each month, interest-only versus amortized?
Rates & rules verified · July 2026Primary sources: OSFI – Guideline B-20 (mortgage underwriting) · CMHC – Mortgage loan insurance
How your home's value is split
Mortgage owed, equity you can access up to 80%, and the 20% cushion lenders keep locked.
Cost to borrow: interest-only vs amortized
Cumulative interest paid over 10 years on the amount you want to borrow.
Payment & interest by year
Amortized repayment of your desired amount, how much of each year goes to principal versus interest.
| Year | Payments | Principal | Interest | Balance |
|---|
How this is calculated
The 80% total-lending rule
Under OSFI's B-20 guideline, all lending secured against your home, first mortgage plus any HELOC or second mortgage, cannot exceed 80% of the property's appraised value. Your available equity is 0.80 × home value − mortgage balance. If your mortgage is already above 80% of value, this figure is $0 until you pay it down or the home appreciates.
The 65% HELOC cap
The revolving (re-borrowable) portion of a home equity line of credit is separately capped at 65% of value: 0.65 × home value − mortgage balance. You can still reach 80% combined, but the slice between 65% and 80% has to be a fixed, amortizing term, it can't revolve. A readvanceable mortgage combines the two: as you pay down the mortgage, the HELOC limit automatically readvances (grows) to keep you at your combined limit.
Cost of borrowing
Interest-only monthly cost is amount × rate ÷ 12, you pay only the interest, so the balance never drops. An amortized payment uses P × r ÷ (1 − (1+r)^−n) with r the monthly rate and n = years × 12; it's higher but retires the debt. The chart compares cumulative interest over 10 years, interest-only rises in a straight line indefinitely, while amortized flattens as the balance falls.
HELOC pricing & risks
HELOCs are variable-rate, typically prime + 0.5% (prime is 4.45% as of July 2026, so ≈4.95%). Because it's secured by your home, a HELOC is callable, the lender can reduce or freeze your limit, and the rate moves with the Bank of Canada. Missing payments can lead to foreclosure. Interest-only minimums make it easy to carry a balance for years without paying anything down.
What this doesn't model
Appraisal costs, legal/discharge fees, prepayment penalties on refinancing your first mortgage, the mortgage stress test on your total housing costs, or income qualification (GDS/TDS). For a full refinance comparison see the refinancing calculator; for the underlying mortgage math, the mortgage calculator.
Common questions
How much home equity can I borrow in Canada?
Total secured lending against your home is capped at 80% of its appraised value (OSFI B-20). Your available equity is 80% of the home value minus your current mortgage balance. If your mortgage is already above 80% of value, no additional equity is accessible until you pay it down or the home appreciates.
What is the 65% HELOC rule in Canada?
The revolving, re-borrowable portion of a home equity line of credit is limited to 65% of the home's value. You can still borrow up to 80% combined, but anything between 65% and 80% must be a fixed, amortizing term portion that pays down like a regular loan, it cannot revolve.
What interest rate do Canadian HELOCs charge in 2026?
HELOCs are variable-rate, typically priced at prime plus about 0.5%. With prime at 4.45% in July 2026, a typical HELOC rate is around 4.95%. Because the rate is variable, your interest cost rises and falls with the Bank of Canada's policy rate.
Should I use interest-only or amortized payments on borrowed equity?
Interest-only payments equal the amount times the rate divided by 12. They keep monthly costs low but never reduce the balance, so you pay interest indefinitely. An amortized payment is higher but retires the debt in a set number of years and usually costs far less over the long run. This tool compares cumulative interest for both over 10 years.
What are the risks of a HELOC?
A HELOC is secured by your home, so missed payments can lead to foreclosure. The rate is variable, so payments rise when rates rise. Lenders can reduce or freeze the limit because it is callable, and interest-only minimum payments make it easy to carry a balance for years without paying anything down.