HELOC Calculator Canada
Calculate your home equity line of credit limit, available equity, and monthly interest cost under Canadian OSFI B-20 rules.
📋 Canadian HELOC Rules at a Glance
How a Canadian HELOC Works
A Home Equity Line of Credit (HELOC) lets Canadian homeowners borrow against the equity they've built in their property. Unlike a second mortgage (which gives you a lump sum), a HELOC is a revolving credit line — you borrow what you need, when you need it, and repay at your own pace. Interest accrues only on the amount you've drawn.
Under OSFI's B-20 guideline, Canadian lenders are restricted to a maximum HELOC of 65% of the home's appraised value. If your HELOC is bundled with a mortgage (a readvanceable mortgage), the total of both cannot exceed 80%. As you pay down the mortgage, your available HELOC room increases automatically.
HELOCs are interest-only — you're only required to make interest payments each month. This makes them very flexible but also means the principal balance doesn't shrink unless you actively pay it down. Because rates are variable (tied to Prime Rate), your monthly payment changes when the Bank of Canada adjusts rates.