On a $900,000 home with a $400,000 mortgage, a home equity line of credit could reach $320,000. Borrow $50,000 of it at 6.70% and you pay $279.17 a month in interest. Put in your own value, balance and rate to see where you land.
How much can I borrow with a HELOC?
A HELOC is a revolving line secured by your home. You draw what you need, pay interest only on what you’ve used, and can borrow again as you pay it down. The Financial Consumer Agency of Canada states that the line itself can’t go above 65% of the home’s value, and this calculator applies that cap.
It runs a second test as well: your mortgage plus the line must stay within 80% of the value. Whichever result is smaller is your available amount. Lenders outside the federal rules may do things differently, and we couldn’t confirm the 80% combined figure as an official limit. It’s a common lender practice, nothing more.
What does the limit look like at different balances?
The first three rows use a $900,000 home and the last uses a $500,000 home, so you can watch the limit shrink as the mortgage grows.
| Home value | Mortgage balance | 65% cap | 80% less mortgage | Available |
|---|---|---|---|---|
| $900,000 | $100,000 | $585,000 | $620,000 | $585,000 |
| $900,000 | $400,000 | $585,000 | $320,000 | $320,000 |
| $900,000 | $600,000 | $585,000 | $120,000 | $120,000 |
| $500,000 | $300,000 | $325,000 | $100,000 | $100,000 |
A worked example
Take that $900,000 home with the $400,000 mortgage. The 65% cap is $585,000. Eighty percent of the value is $720,000, and once the mortgage comes off, $320,000 is left. The lower figure wins, so your line is $320,000, and here the 80% test is the one doing the limiting.
Plan to borrow $50,000 at 6.70% and the interest-only payment is $279.17 a month. Mortgage plus line then equal 50.0% of the value. Ask for $400,000 instead and the calculator warns you, then prices the interest on $320,000, which is $1,786.67 a month.
What goes wrong with a HELOC?
The line is easy to use, and that’s the risk. Treat the limit as a ceiling and not a target, and borrow only what you have a plan to repay.
The payment shown is interest only, so no principal comes off and the debt stays where it is until you pay it down yourself. The calculator also uses the single rate you type in. Ask your lender what it really charges, then try a higher rate to see what the payment looks like under stress.
Home value is your own estimate here, and a lender may see it differently. Want to replace your mortgage instead of adding a line? Use the mortgage refinance calculator. To weigh other borrowing, try the line of credit calculator or the personal loan calculator. And if the plan is to clear card debt, the credit card payoff calculator shows how fast that goes.
Where the numbers come from
The 65% cap comes from the Financial Consumer Agency of Canada page on home equity lines of credit. The 80% combined limit is a common rule the calculator applies, and we haven’t confirmed it. Your lender sets the rate, the value and the final limit. No government body has any tie to this site, and every result is an estimate.
Frequently asked questions
How much can I borrow with a HELOC?
On a $900,000 home with a $400,000 mortgage, the calculator shows $320,000. That's the lower of 65% of value and 80% of value minus your mortgage.
Is the 65% cap official?
Yes. The Financial Consumer Agency of Canada says a HELOC can't exceed 65% of your home's value.
Is the 80% combined limit confirmed?
Not on any official page we checked. The calculator applies it as a common lender rule, so your lender may differ.
What does the monthly payment show?
Interest only on the amount you borrow. At 6.70%, $50,000 costs $279.17 a month and repays no principal.
What if I ask for more than the limit?
The calculator warns you and works out the interest on the available amount instead.
Sources and updates
Updated: . How we check rates · Editorial team · Updates
Estimate only. These figures are a planning estimate, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns, and we don't offer tax, legal or accounting services. We have no connection with the Canada Revenue Agency, Revenu Québec or any provincial government. Your real amounts depend on details this tool cannot see, so confirm them with an official source or a qualified professional before you act.