HELOC limit
A home equity line of credit is capped twice: the revolving portion cannot exceed 65% of the home’s value, and everything secured against the home cannot exceed 80%. Both ceilings are applied here.
- 65% / 80% LTV rules
- Interest-only vs principal
- Draw scenarios
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How the two ceilings interact
| Home value | $880,000 |
|---|---|
| 80% of value | $704,000 |
| Less the mortgage | − $390,000 |
| Room under the 80% ceiling | $314,000 |
| Room under the 65% revolving ceiling | $182,000 |
Your equity today
- Your equity$490,000
- Mortgage$390,000
The cost of paying interest only
| Interest-only, five yearsBalance still $60,000 | $19,350 |
|---|---|
| Amortized over 10 yearsBalance zero at the end | $21,571 |
| Interest-only plus 0.5% of principalHow long that takes to clear | 11 yr 4 mo |
OSFI’s guideline caps the revolving portion of a home equity line at 65.0% of the property value, and all lending secured by the property at 80.0%. The larger figure is reachable only through a readvanceable mortgage component that amortizes.
HELOC interest compounds monthly, not semi-annually, so the periodic rate here is simply the annual rate divided by twelve.
Interest on money borrowed to earn investment income may be deductible. Interest on money borrowed for a renovation or a car is not.
These results are illustrative estimates based on published 2026 rates and typical lender rules. They are not financial, tax, or legal advice, and they are not a mortgage or credit approval. See the methodology and disclaimer.
Semi-annual compounding, CMHC premium, and the equity you build each year.
Weigh the penalty and fees against the payment you would save.
Payments, total cost, and whether consolidation actually helps.
A 0% promotion with a transfer fee, against staying where you are.