Home Equity & HELOC Calculator
The equity you can borrow against under Canada's 80% total-lending rule and the 65% cap on a revolving line of credit, and what it costs each month, interest-only versus amortized.
Rates & rules verified · July 2026Primary sources: OSFI – Guideline B-20 (mortgage underwriting) · CMHC – Mortgage loan insurance
Where your borrowing lands against the caps
Your mortgage, then your mortgage plus the amount you want, as a share of the home's value, measured against the 65% cap on revolving credit and the 80% limit on all lending.
Interest paid and debt left: interest-only vs amortized
Interest paid to date (solid) and the balance still owed (dashed) under each plan, year by year, for your amortization plus two years.
Payment & interest by year
Amortized repayment of the amount you want to borrow: 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.
The loan-to-value meter
The first bar is mortgage ÷ home value; the second is (mortgage + amount you want) ÷ home value, on a 0–100% scale. The shading marks the caps: under 65% a revolving HELOC is allowed, from 65% to 80% only an amortizing loan, and past 80% nothing more can be secured on the home. A bar past 100% stops at the end of the scale.
Cost of borrowing
Interest-only monthly cost is amount × HELOC rate ÷ 12: you pay only the interest, so the balance never drops. Because of the 65% cap, only the part that keeps you under 65% of value, min(amount, 0.65 × home value − mortgage), is costed this way; the rest is costed as an amortizing loan at your fixed rate, even when you choose interest-only. An amortized payment uses P × r ÷ (1 − (1+r)^−n) with r = fixed rate ÷ 12 (compounded monthly, as a second mortgage or home equity loan is usually quoted) and n = years × 12; it's higher but retires the debt.
The cost chart
Both plans are followed for your amortization plus two years (at least 10 years). Solid lines add up the interest paid to date; dashed lines show the balance still owed at each year end. Read them together: an interest-only line can sit below the amortized one for years while the debt it leaves behind stays put. The two plans use different rates (your HELOC rate and your fixed rate), both held at today's figures. If your mortgage is already above 65% of value, nothing can be interest-only and only the amortized plan is drawn.
HELOC pricing & risks
HELOCs are variable-rate, typically prime + 0.5% (prime is 4.70% as of October 2026, so ≈5.20%). 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). It also holds rates flat: a HELOC's rate moves with prime, and a lender may price the amortizing portion like a mortgage rather than at your fixed rate. 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 4.70% in October 2026, a typical HELOC rate is around 5.20%. 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.
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.