60-Second Equity & Refinance Savings Check
Not sure whether a HELOC or a refinance saves you more each month?
Run our 60-second check and Rohit Sachdeva will compare 30+ lenders for both options. No credit check to start.
1. Your home value & current mortgage
A standalone HELOC can reach up to 65% of this value; combined with a mortgage, up to 80%.
2. Amount to draw & rate comparison
With a HELOC, you only pay interest on the amount you actually draw. Compare that against amortizing the same amount inside a mortgage refinance.
Typically lender's Prime + 0.50% to 1.00%.
Amortizing mortgage rate for comparison.
Maximum HELOC Equity Limit
Combined with your mortgage (up to 80% total LTV, 65% revolving cap)
$180,000
- Standalone HELOC limit (65% LTV cap)
- $90,000
- Total 80% refinance equity room
- $180,000
Monthly Payment on a $50,000 Draw
An interest-only HELOC payment keeps monthly outflow flexible, while a refinance payment pays down principal every month at a lower mortgage rate.
Prefer the full application? Start standard pre-qualification
Canadian HELOC Rules · 65% vs 80% LTV
How the 65% Standalone and 80% Combined HELOC Limits Work
In Alberta, Saskatchewan, and across Canada, a Home Equity Line of Credit lets you borrow against your home equity as needed and pay interest only on what you draw. Here are the key questions homeowners ask when comparing a HELOC against a mortgage refinance.
Frequently Asked Questions: HELOC Calculator & Equity Limits
- How much can I borrow on a HELOC in Canada?
- Under Canadian federal lending rules (OSFI Guideline B-20), the revolving portion of a Home Equity Line of Credit (HELOC) cannot exceed 65% of your home's appraised value. When combined with an amortizing mortgage at the same lender (a readvanceable mortgage), your total combined borrowing can reach up to 80% of your home's value, with any portion between 65% and 80% held in an amortizing term.
- How are monthly HELOC payments calculated?
- Most Canadian HELOCs charge a variable interest rate tied to the lender's prime rate plus a margin, and calculate interest daily on the amount you have actually drawn. The minimum monthly payment is typically interest-only: Drawn Balance multiplied by your annual HELOC rate, divided by 12.
- Should I use a HELOC or a mortgage refinance to borrow $50,000+?
- A HELOC works best when you want to draw funds in stages (such as a phased home renovation) or keep an emergency reserve with $0 interest until used, especially if your current mortgage has a low locked-in rate you do not want to break. A mortgage refinance is usually better for a lump-sum debt consolidation because mortgage rates are typically lower than HELOC rates and scheduled principal-and-interest payments ensure the balance is paid down.
- Do I have to pass the mortgage stress test for a HELOC?
- Yes. Federally regulated lenders qualify HELOC applications using the minimum qualifying rate: the greater of 5.25% or your contract HELOC rate plus 2%.
- Can I get a standalone HELOC behind my current mortgage?
- Yes, provided your current mortgage plus the new HELOC fits within the lender's Loan-to-Value limit (up to 65% LTV for a standalone revolving line) and your first-mortgage lender permits a secondary registration.
Not a rate quote. Rates and figures shown are illustrative, subject to change without notice, and are not an approval or a commitment to lend. Your income, credit, and the federal stress test determine how much of your equity limit you qualify to borrow.