Example$500,000 home value · update mortgage balance and rate to see your available equity
Jump into related tools with your next best calculation.
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.
Canadian lenders allow up to 65% of your home's appraised value as a HELOC, combined with any mortgage balance not exceeding 80% of the home value (the combined LTV limit). For example, a $700,000 home with a $300,000 mortgage could have a HELOC limit of up to $260,000 (80% × $700k = $560k − $300k existing mortgage).
HELOC interest is tax-deductible only when the funds are used to earn investment income - for example, to purchase non-registered investments or rental property. Funds used for personal spending, home renovations (for primary residence), or consolidating consumer debt are not deductible. The CRA's 'direct use' tracing rules apply.
HELOC rates in Canada are typically set at prime + 0.5% to prime + 1.25%. With Bank of Canada prime at 4.95% in April 2026, most HELOCs are currently 5.45–6.20%. Rates float with prime, unlike fixed-rate mortgages.
Long-form explainers that pair with this calculator.