Mortgage · Canada
HELOC payment.
Estimate your home equity line of credit payment with interest-only or principal-plus-interest options.
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Your HELOC payment
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How a HELOC works
A home equity line of credit lets you borrow against the equity in your home, usually up to 65% of your home's value. HELOCs are revolving credit: you can draw, repay, and redraw as needed. Most Canadian HELOCs require interest-only payments, but you can also pay down principal at any time.
TNAADO Inc. · Toronto
A HELOC is revolving credit secured by your house
A home equity line of credit lets you borrow, repay and re-borrow up to a limit set against your equity. A standalone HELOC is generally capped at 65% of the home’s value; combined with a mortgage, total secured lending can reach 80%. The rate is variable and moves with the lender’s prime rate, and the minimum payment is usually interest only, which is what makes it feel cheap and what makes the balance sit there for years.
The mistake people make. Treating an interest-only minimum as a repayment plan. Paying only the interest never reduces the principal, and because the credit is secured by the home the consequence of trouble is not a collection call, it is the house. The second error is assuming the limit is guaranteed: a lender can generally reduce or freeze a HELOC, and typically does so exactly when property values fall.
Disclaimer
Estimates for educational purposes only. Actual HELOC rates and payment terms vary by lender.