How much home equity can I access when refinancing in Canada?

Under Canadian federal mortgage rules (OSFI Guideline B-20), you can refinance up to 80% of your home's appraised market value, minus your remaining mortgage balance. For example, on a $600,000 home (80% limit = $480,000) with a $350,000 mortgage balance, you have up to $130,000 in accessible home equity before closing costs.

What is the difference between a mortgage refinance and a HELOC?

A mortgage refinance replaces your existing mortgage with a single new amortizing mortgage up to 80% of the home's value, with scheduled principal-and-interest payments. A standalone Home Equity Line of Credit (HELOC) is a revolving credit line capped at 65% of the home's value (or up to 80% when combined with an amortizing mortgage) where you pay interest only on what you draw.

Does refinancing to consolidate debt require passing the mortgage stress test?

Yes. Any mortgage refinance that increases your loan balance or changes your amortization requires qualifying at Canada's minimum qualifying rate: the greater of 5.25% or your contract mortgage rate plus 2%.

When is the cheapest time to refinance a mortgage?

Refinancing at your mortgage renewal date avoids prepayment penalties completely. If you refinance mid-term to consolidate high-interest debt, your lender charges a prepayment penalty (typically three months' interest on a variable rate, or the greater of three months' interest or the Interest Rate Differential on a fixed rate), so comparing your monthly savings against that penalty is essential.

How do I prevent stretching short-term debt over 25 years from costing more interest?

Rolling 19.99% credit cards or 9% lines of credit into a 4% mortgage immediately lowers your monthly outflow. If you apply part of your monthly savings toward annual lump-sum prepayments or choose a shorter amortization, you eliminate the consolidated debt in a few years while paying far less total interest.

Mortgage Refinance Calculator & Home Equity Calculator

60-Second Personalized Savings Check

Want Rohit Sachdeva to run your exact lender rates, equity room, and penalty math?

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Example figures are filled in below. Tap any box, slider, or preset button to enter your own numbers.

Step 1 · Home Equity & Current Mortgage

Your home and mortgage

Estimated home value80% limit: $480,000

A refinance can total up to 80% of your home's appraised value.

Current mortgage balanceAccessible equity: $130,000

Current monthly mortgage payment

Principal and interest on your existing mortgage today.

Step 2 · Debt Consolidation (Optional)

Balances to pay out with home equity

Add any credit cards, lines of credit, car loans, or tax balances the refinance would pay off at closing, along with what they cost you each month today.

Balance #1

What it is

Balance owing

Monthly payment

Balance #2

What it is

Balance owing

Monthly payment

Step 3 · New Refinance Mortgage Details

The new mortgage & cash out

Mortgage term

Mortgage rate (%)

Amortization

Extra cash to take out

Optional: tax-free equity for renovations, investments, or family plans.

Penalty to break current term

$0 at renewal. Mid-term, ask your lender for the exact figure.

Legal, appraisal & other fees

Optional closing costs if rolled into the new mortgage.

Mortgage Refinance Payment Estimate

New monthly mortgage payment

$2,065/mo

Estimated monthly cash-flow reliefSave $835/mo

That is $10,020/year less going out each month compared to your $2,900/mo today.

Today: mortgage + outside balances: $2,900/mo
After refinance (one payment): $2,065/mo
New total mortgage amount: $385,000

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60-second personalized review with Rohit Sachdeva · No credit impact

Refinance Equity Calculator · 80% Rule

Your home equity & borrowing limit

New loan-to-value: 64%80% max refinance limit

80% limit on $600,000 home: $480,000
Accessible equity (before payouts): $130,000
Balances paid out + extra cash: $35,000
Equity room left under 80% limit: $95,000

Or keep your mortgage and add a HELOC

Combined with mortgage (80% cap): Up to $130,000
Standalone HELOC (65% cap): Up to $40,000

Against your current $350,000 balance: up to 80% combined with the revolving line capped at 65%, or 65% standalone. How a HELOC works

Over the whole mortgage

At $2,065 a month over 25 years, the interest comes to $234,508.

Keep paying $2,900 a month, what goes out today, and the entire mortgage is paid off in 14 years 11 months with $131,422 in interest.

Assumes the rate stays the same for the whole amortization; in practice it resets at each renewal. Fixed rates compound semi-annually, variable monthly.

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How the Numbers Work · Alberta & Saskatchewan

How to use this Mortgage Refinance & Home Equity Calculator

Whether you are searching for a mortgage refinance calculator to lower your monthly outflow or a home equity calculator to check how much equity you can borrow, Canadian lending rules follow three core calculations:

1. The 80% Refinance Equity Limit

Maximum Accessible Equity

In Canada, a mortgage refinance can total up to 80% of your home's appraised value. Multiply your home value by 0.80 and subtract your current mortgage balance to see your accessible home equity before closing costs.

2. Monthly Cash-Flow Relief

Consolidating High-Interest Debt

Credit cards (19% to 22%) and unsecured lines or loans require high monthly payments. Folding them into a single amortizing mortgage at a mortgage rate often frees up hundreds or thousands of dollars in monthly breathing room.

3. Refinance vs. 65% HELOC

Lump Sum vs. Revolving Line

A refinance locks your balance into one scheduled mortgage payment up to 80% LTV. A standalone HELOC lets you draw as needed up to 65% LTV (or 80% combined with an amortizing mortgage) without breaking your current mortgage rate.

Frequently Asked Questions: Refinancing & Home Equity

How much home equity can I access when refinancing in Canada?: Under Canadian federal mortgage rules (OSFI Guideline B-20), you can refinance up to 80% of your home's appraised market value, minus your remaining mortgage balance. For example, on a $600,000 home (80% limit = $480,000) with a $350,000 mortgage balance, you have up to $130,000 in accessible home equity before closing costs.
What is the difference between a mortgage refinance and a HELOC?: A mortgage refinance replaces your existing mortgage with a single new amortizing mortgage up to 80% of the home's value, with scheduled principal-and-interest payments. A standalone Home Equity Line of Credit (HELOC) is a revolving credit line capped at 65% of the home's value (or up to 80% when combined with an amortizing mortgage) where you pay interest only on what you draw.
Does refinancing to consolidate debt require passing the mortgage stress test?: Yes. Any mortgage refinance that increases your loan balance or changes your amortization requires qualifying at Canada's minimum qualifying rate: the greater of 5.25% or your contract mortgage rate plus 2%.
When is the cheapest time to refinance a mortgage?: Refinancing at your mortgage renewal date avoids prepayment penalties completely. If you refinance mid-term to consolidate high-interest debt, your lender charges a prepayment penalty (typically three months' interest on a variable rate, or the greater of three months' interest or the Interest Rate Differential on a fixed rate), so comparing your monthly savings against that penalty is essential.
How do I prevent stretching short-term debt over 25 years from costing more interest?: Rolling 19.99% credit cards or 9% lines of credit into a 4% mortgage immediately lowers your monthly outflow. If you apply part of your monthly savings toward annual lump-sum prepayments or choose a shorter amortization, you eliminate the consolidated debt in a few years while paying far less total interest.

How refinancing works

The 80% equity limit, the stress test, prepayment penalties, and closing costs.

Debt consolidation mortgages

When paying outside balances out with home equity adds up, and how to compare total cost.

Home equity line of credit (HELOC)

Draw against your home equity as you need it, up to 65% standalone or 80% combined.

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. This calculator does not assess whether you would qualify; your income, credit and the stress test decide that.