Example$500,000 home value · update mortgage balance and rate to see your available equity
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A HELOC (Home Equity Line of Credit) in Canada lets you borrow against the equity in your home up to 65% of the appraised value, with your total mortgage + HELOC capped at 80% loan-to-value. This calculator shows your current available equity, estimates the interest cost, and compares interest-only vs full-payoff payment plans at today's prime rate.
Available HELOC limit = min(65% × appraised value, 80% × appraised value − mortgage balance). Interest is calculated on a variable rate tied to your lender's prime (most commonly prime + 0.5% in April 2026). Interest-only payments cover the interest charge each month; full-payoff scenarios use standard amortization over your chosen term.
HELOC rates in April 2026 are typically 5.45–6.20% (prime 4.95% + 0.5–1.25%). Interest on HELOC funds used to earn investment income may be tax-deductible; funds used for home renovations or personal spending are not. Document your use case carefully.
Most Canadian lenders allow up to 65% of your home's appraised value as a HELOC limit, combined with your remaining mortgage balance the total cannot exceed 80% of the home value (LTV). The calculator illustrates available equity based on your inputs.
Interest on a HELOC used to earn investment income may be deductible from taxable income in Canada. Interest on funds used for personal expenses is generally not deductible. Consult a tax professional for your situation.
A HELOC is a revolving credit line secured against your home equity; you draw and repay as needed and only pay interest on what you use. A second mortgage is a fixed lump-sum loan with scheduled payments. HELOCs typically have variable rates tied to the prime rate.
Long-form explainers that pair with this calculator.