Loans Calculators · Canada
HELOC calculator Canada.
Short answer: a Canadian HELOC is capped at 65% of your home’s value, and your mortgage plus HELOC together at 80%, so the usable limit is the lower of the two. On a $900,000 home with a $450,000 mortgage that is $270,000. Enter your numbers below for the limit, interest-only and amortizing payments, total interest and a stress-rate check. Everything runs in your browser.
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Your HELOC estimate
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How this HELOC calculator works
Maximum HELOC is the lower of 65% of your home value and 80% of your home value minus your mortgage balance, never below zero. The FCAC says a HELOC may be up to 65% of the home’s value. OSFI Guideline B-20, which governs federally regulated lenders, limits a HELOC to 65% and a mortgage plus HELOC to 80%. Provincially regulated lenders and credit unions may set different limits, and any lender can lend less.
Interest-only payment is the amount drawn times your annual rate divided by 12. Amortizing payment is the standard fixed-payment formula applied to the amount drawn over your repayment period at the same rate. Total interest adds the interest-only months to the interest paid during repayment. The calculator assumes the rate stays flat and you draw the full amount on day one, which real HELOCs rarely do, so treat results as a planning estimate.
Stress-rate illustration: OSFI’s minimum qualifying rate for uninsured mortgages is the greater of the contract rate plus 2% or 5.25%, current as of January 29, 2026. The tool shows your payments at that rate so you can see the room you have if rates rise. Lenders set their own HELOC qualification rules, so this is not a qualification test.
Canadian prime rate note
HELOC rates are usually quoted as prime plus a spread. Each bank sets its own prime rate, and by convention it follows the Bank of Canada policy rate. As of the Bank of Canada’s September 2, 2026 announcement the target for the overnight rate is 2.25%. Major banks have generally kept prime about 2.2 percentage points above that target, which would put it near 4.45%, but that is an inference, not a published figure, so confirm your lender’s current prime and your spread. Source: Bank of Canada, policy interest rate.
Worked example: $900,000 home, $450,000 mortgage
- 65% of $900,000 = $585,000. 80% of $900,000 = $720,000, minus the $450,000 mortgage = $270,000. The lower figure, $270,000, is the estimated maximum HELOC.
- Draw $100,000 at prime 4.45% plus 0.50% = 4.95%. The interest-only payment is $100,000 × 4.95% ÷ 12 = $412.50 a month.
- After 10 interest-only years, repaying the $100,000 over 15 years at the same rate costs $788.19 a month.
- Interest is $49,500 in the interest-only phase plus $41,874.46 during repayment, $91,374.46 in total.
- Combined loan-to-value after the draw is ($450,000 + $100,000) ÷ $900,000 = 61.1%. At the $270,000 maximum it would be 80%.
- At the 6.95% stress rate (4.95% + 2%) the interest-only payment is $579.17 a month.
HELOC vs home equity loan vs refinance
| HELOC | Home equity loan | Mortgage refinance | |
|---|---|---|---|
| How you get the money | Revolving limit, draw as needed | One lump sum | New mortgage replaces the old one, extra paid out as cash |
| Typical rate type | Variable, prime plus a spread | Often fixed | Fixed or variable |
| Payments | Often interest-only on what you owe | Fixed principal and interest | Principal and interest on the whole new mortgage |
| Regulatory limit (federally regulated lenders) | 65% of value; 80% with the mortgage | Set by lender; counts toward overall limit | Set by lender and mortgage rules |
| Watch for | Rate rises, temptation to overborrow | Closing costs, second lien | Prepayment penalty on the old mortgage, new legal and appraisal fees |
If you want the fixed-rate version, use the home equity loan payment calculator, or compare both with the home equity loan vs HELOC calculator.
Sources
- Financial Consumer Agency of Canada: Home equity line of credit (65% limit, interest-only, prime-based rates, readvanceable mortgage)
- OSFI Guideline B-20: Residential Mortgage Underwriting Practices and Procedures (HELOC and combined LTV limits)
- OSFI: Minimum qualifying rate for uninsured mortgages (current as of January 29, 2026)
- Bank of Canada: Policy interest rate (2.25% as of September 2, 2026)
- Canada Revenue Agency: Line 22100, carrying charges and interest expenses
Sources reviewed October 1, 2026. The prime rate shown is an estimate; all other figures come from the sources above or from this page’s own arithmetic. This site has no partnership with any bank or lender.
HELOC calculator FAQ
How much can I borrow with a HELOC in Canada?
The Financial Consumer Agency of Canada says a HELOC can be up to 65% of your home's value. OSFI Guideline B-20 also caps a HELOC plus your mortgage at 80% of value for federally regulated lenders. This calculator uses the lower of the two limits. On a $900,000 home with a $450,000 mortgage that is $270,000, because 80% of $900,000 minus the mortgage is less than 65% of $900,000 ($585,000). Lenders also check income, credit and the property.
Is HELOC interest tax deductible in Canada?
Only if the borrowed money is used to earn income from a business or property. The CRA allows interest on money borrowed to earn investment income on line 22100, and does not allow it when the funds are used for personal spending such as renovations or a vacation. Ask a tax professional about your situation.
What is a readvanceable mortgage?
The FCAC describes a readvanceable mortgage as a mortgage combined with a HELOC, where the credit available on the HELOC grows as you pay down the mortgage principal.
Why is a HELOC rate quoted as prime plus something?
FCAC notes most HELOCs have a variable rate based on the lender's prime rate, for example prime plus 1%. When the Bank of Canada changes its policy rate, lenders usually move prime and your payment changes with it.
Will I qualify for a HELOC?
Equity is only one test. Lenders also look at income, credit history, existing debts and the property, and may apply their own qualifying rate. OSFI's minimum qualifying rate for uninsured mortgages is the greater of the contract rate plus 2% or 5.25% (current as of January 29, 2026). This page shows payments at that stress rate as an illustration only, since lenders set their own HELOC qualification rules.
Is a HELOC different from a home equity loan?
Yes. A HELOC is revolving credit you draw on as needed, usually at a variable rate and often interest-only during the draw period. A home equity loan pays out a lump sum with a fixed payment schedule. Use the home equity loan payment calculator on this site if you want the fixed-rate version.
Disclaimer
This educational estimate is not a loan offer, tax advice or financial advice. Actual limits, rates, fees and qualification rules vary by lender. Your home secures a HELOC and may be at risk if you do not repay it. Speak to a lender and, for tax questions, a qualified tax professional.