Canadian readvanceable mortgage
Mortgage line of credit, room by year.
A readvanceable mortgage pairs a mortgage with a home equity line of credit. Enter your home and mortgage to see the line of credit room today and as the mortgage shrinks.
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Formula: HELOC room = the lesser of (HELOC cap x home value) and (combined cap x home value minus mortgage balance), never below zero. As you repay mortgage principal the second figure rises, so room grows until it reaches the HELOC cap.
Payment: a level monthly mortgage payment for the years left, with semi-annual compounding for fixed rates (the usual Canadian convention) or monthly for variable. The balance falls each month by the payment less interest.
Rules used: the Financial Consumer Agency of Canada says that with a HELOC you may borrow up to 65% of the value of your home, that a HELOC combined with a mortgage is also called a readvanceable mortgage, that your available credit increases as you pay down your mortgage principal, and that the combined product needs at least 20% equity, which is why the combined cap defaults to 80%. Both caps are editable because lenders set their own terms.
Sources, retrieved 2026-10-18:
An estimate, not a lender offer. Your lender sets the actual limit, the rate and the re-appraisal rules.
FAQ
What is a readvanceable mortgage?
The Financial Consumer Agency of Canada describes it as a HELOC combined with a mortgage. Your available credit increases as you pay down your mortgage principal.
How much can I borrow on a HELOC in Canada?
The Financial Consumer Agency of Canada says you may borrow up to 65% of the value of your home with a HELOC. A HELOC combined with a mortgage needs at least 20% equity, so the two together stay at or under about 80%.
Why does the line of credit room start small?
The combined cap leaves little room when your mortgage is large. At 80% combined, a mortgage at 62.5% of the home value leaves only 17.5% of the value available even though the HELOC cap is 65%.
Do I pay interest on the full limit?
No. Interest is charged on what you draw. The optional field shows the monthly interest-only cost on an amount you enter at the rate you enter.