How much home equity can I borrow against in Canada?

A HELOC on its own is capped at 65% of the property's value. Combined with your mortgage, total secured borrowing is capped at 80% of value on a readvanceable product. Your available room is that ceiling minus what you already owe.

What is the difference between a HELOC and a home equity loan?

A HELOC is revolving credit at a variable rate — draw, repay and redraw, paying interest only on what is outstanding. A home equity loan is a lump sum at a fixed rate with a set repayment schedule. HELOCs are more flexible; loans are more predictable.

Do I have to qualify for a HELOC?

Yes, and on the full limit rather than what you intend to draw. Federally regulated lenders apply the stress test, so a large limit you never use still consumes borrowing capacity on any future application.

Is HELOC interest tax deductible in Canada?

Only when the borrowed money is used to earn investment or business income, and you have to be able to trace it. Interest on a HELOC used for renovations or personal spending is not deductible. Talk to an accountant before assuming a deduction.

HELOC + equity

Home equity + HELOC limit

What you could borrow against your home. Federally regulated lenders cap the revolving HELOC at 65% of the home's value and total borrowing at 80%, so what you still owe decides the limit.

Your scenario

Home value$1,100,000

$100,000$5,000,000

Mortgage balance$420,000

$0$5,000,000

Result

Available HELOC limit

$460,000

Equity in home

$680,000

% owned

61.82%

Refinance ceiling (80% LTV)

$460,000

Upper limits under OSFI Guideline B-20 for federally regulated lenders; your lender applies its own appraisal, credit and stress-test qualification.

Rules checked: September 2026. Source: OSFI Guideline B-20

Canadian HELOC limits — 65% revolving, 80% in total

OSFI's Guideline B-20 expects federally regulated lenders to limit the non-amortizing, revolving HELOC component to a loan-to-value ratio of 65%. Credit above 65% can still be extended, but it has to amortize — and total borrowing on a conventional mortgage stays within 80% of the home's value (OSFI). So your HELOC limit is the lesser of 65% of the value and 80% of the value minus what you owe.

Example: a $1,100,000 home with $420,000 owing. 65% of value is $715,000; 80% of value minus the mortgage is $460,000. The HELOC limit is $460,000.

Refinance vs HELOC ceiling

A refinance of an uninsured mortgage can also go to 80% of the value, but it is amortizing debt at a mortgage rate, and it usually means breaking your current term. This calculator shows both ceilings side by side.

What HELOCs are best for

Major renovations with strong resale recovery (kitchens, baths, basement suites)
Investment property down payments (interest is tax-deductible against rental income)
High-interest debt consolidation
Bridge financing during a home sale
Standing emergency credit line (set it up, don't draw)

HELOC rate mechanics

Canadian HELOCs price as prime + a spread, typically prime + 0.5% to prime + 1.5%. Rates move with BoC. Minimum payments are interest-only — meaning balances can persist for years if you don't pay extra principal.

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Questions about this calculator

How much home equity can I borrow against in Canada?: A HELOC on its own is capped at 65% of the property's value. Combined with your mortgage, total secured borrowing is capped at 80% of value on a readvanceable product. Your available room is that ceiling minus what you already owe.
What is the difference between a HELOC and a home equity loan?: A HELOC is revolving credit at a variable rate — draw, repay and redraw, paying interest only on what is outstanding. A home equity loan is a lump sum at a fixed rate with a set repayment schedule. HELOCs are more flexible; loans are more predictable.
Do I have to qualify for a HELOC?: Yes, and on the full limit rather than what you intend to draw. Federally regulated lenders apply the stress test, so a large limit you never use still consumes borrowing capacity on any future application.
Is HELOC interest tax deductible in Canada?: Only when the borrowed money is used to earn investment or business income, and you have to be able to trace it. Interest on a HELOC used for renovations or personal spending is not deductible. Talk to an accountant before assuming a deduction.