HELOC calculator — how much can you borrow?
A home equity line of credit (HELOC) lets you borrow against your home's equity, on demand. In Canada the HELOC portion is capped at 65% of your home's value, and your HELOC plus mortgage together can't exceed 80%. Enter your numbers to see your available credit limit.
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How much of your home equity you can actually borrow
Equity and borrowing power aren’t the same number, and the difference surprises people. You can have a large amount of equity on paper, but federal rules cap what a line of credit can reach. Two limits apply at once: the revolving HELOC portion can’t exceed 65% of the home’s appraised value, and your HELOC plus mortgage combined can’t exceed 80%. Your available limit is whichever of those two caps binds first.
A worked example: a $900,000 home with a $450,000 mortgage
You have $450,000 of equity, but that’s not your borrowing power. The 65% HELOC cap is $585,000. The 80% combined cap is $720,000, and after subtracting your $450,000 mortgage that leaves $270,000. Because $270,000 is lower than $585,000, the 80% combined limit binds and your available HELOC is about $270,000 — not the $450,000 of equity, and not the $585,000 the 65% rule alone would allow. Pay your mortgage down and that combined headroom rises dollar for dollar.
HELOC, home equity loan, or refinance?
A HELOC is revolving and interest-only on the drawn balance, priced at prime plus a margin — ideal for staged or flexible needs like renovations, an emergency cushion, or a down payment on a second property, where you don’t want to borrow (or pay interest on) the whole limit at once. If you need a large lump sum at the lowest rate, a refinance is usually cheaper because it’s a fixed first-mortgage rate. For speed or a tighter credit file, a second mortgage can reach higher LTVs. The right tool depends on whether you need flexibility or the lowest rate.
Getting approved — and the best margin
A HELOC is new credit, so you requalify: the lender verifies income and credit and applies the stress test (you qualify at the greater of your rate + 2% or 5.25%). The margin over prime is negotiable and depends on your file — a strong borrower might get prime + 0.50% while a thinner file pays prime + 1% or more. Once you know your limit, the HELOC payment calculator shows the monthly interest on any drawn balance. We shop HELOC-friendly lenders across 50+ options to find both the room and the sharpest margin for your situation.