Home equity + HELOC limit
What you can borrow against your home. Canadian HELOCs cap at 65% LTV; refinances cap at 80%. Available limits depend on what's already owed on the first mortgage.
Your scenario
Result
HELOC + first mortgage combined cannot exceed 65% LTV per OSFI guidance. Lenders also impose qualifying-rate stress tests.
Canadian HELOC limits — the 65% cap
OSFI caps Canadian HELOCs at 65% combined loan-to-value (HELOC + any first mortgage). This is a hard rule for federally regulated lenders. Even with substantial equity, your HELOC limit is bounded.
Refinance vs HELOC ceiling
Refinancing a Canadian mortgage caps at 80% LTV. If you need more borrowing capacity than 65%, refinancing your first mortgage upward is the path — not a larger HELOC. 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.