Home Equity Calculator Canada 2026 — HELOC Limit & LTV

Your Home Details

Quick examples:

Estimated Home Value

Use a recent appraisal, a real estate agent's estimate, or comparable sales in your area. Lenders will use an independent appraisal before approving a HELOC.

Outstanding Mortgage Balance

The remaining principal on your mortgage. Find this on your latest mortgage statement. Enter 0 if you own your home outright.

Existing HELOC Balance (optional)

Any amount already drawn on an existing HELOC. Reduces your available borrowing room. Enter 0 if you have no HELOC or haven't drawn from it.

HELOC Interest Rate

Current Canadian HELOC rates are typically prime + 0.5% to prime + 1.0%. With prime at 4.95% in 2026, that's roughly 5.45%–5.95%. Adjust to your lender's quoted rate.

Your Results

Enter your home value and mortgage balance to see your equity and HELOC limit.

Home Equity

—

Estimated Home Value —

Outstanding Mortgage —

Existing HELOC Drawn —

Net Home Equity —

HELOC Borrowing Capacity (OSFI B-20)

Rule A: 65% of home value —

Rule B: 80% of value minus mortgage —

Maximum HELOC Limit —

Available to borrow now: —

Current LTV

—

Loan-to-value ratio

LTV After Full Draw

—

If HELOC fully used

Monthly Interest

—

On current HELOC balance

Equity as % of Value

—

Ownership stake in home

⚠️ This calculator applies OSFI's 65%/80% LTV limits. Actual HELOC approval depends on your lender's appraisal, credit score, income verification, and debt service ratios. The stress test applies — you must qualify at your HELOC rate plus 2% or 5.25%, whichever is higher.

Home Equity and HELOCs in Canada: 2026 Guide

🏠 What Is Home Equity?

Home equity is the difference between your home's current market value and the amount you still owe on your mortgage. If your house is worth $900,000 and you owe $400,000, your equity is $500,000. Equity grows over time as you pay down the mortgage and as the property appreciates in value. It is the asset you can tap into for major expenses without selling your home.

This calculator helps you understand your equity position, your loan-to-value ratio (LTV), and how much you may be able to borrow through a HELOC under Canadian lending rules. It also shows when your current mortgage balance leaves you too close to the 80% combined LTV ceiling, which can block HELOC approval.

📏 The Two OSFI LTV Rules Explained

OSFI Guideline B-20 requires lenders to consider two key limits when approving a HELOC. The first is a standalone HELOC cap of 65% of home value. The second is a combined cap of 80% of home value when adding your mortgage balance and HELOC limit together. The lender must comply with both, so your actual borrowing room is the lower of the two amounts.

Rule A — 65% Cap

Your HELOC balance cannot exceed 65% of your home's value by itself. On a $750,000 home, that limit is $487,500.

Rule B — 80% Combined

Your mortgage balance plus the HELOC limit cannot exceed 80% of the home's value. If your mortgage is $300,000 on a $750,000 house, this rule allows a maximum HELOC of $300,000.

📊 How Loan-to-Value Affects Your Options

Loan-to-value ratio (LTV) is the percentage of your home's value that is financed. A lower LTV is safer for lenders and usually means better borrowing options. Most Canadian lenders prefer borrowers to stay below 65% to 75% combined LTV for the best rates and the easiest approval.

This calculator shows your current LTV and your LTV after a potential full HELOC draw. If your LTV is already close to 80%, you may need to pay down the mortgage or wait until your home appreciates to access more equity. The tool also highlights when you may not qualify for a new HELOC because your mortgage balance already exceeds 80% of value.

💡 When to Use a HELOC vs a Refinance

A HELOC is best when you need flexible access to funds for ongoing expenses, renovations, or short-term cash flow. It is a revolving line: borrow, repay, and borrow again as needed. A refinance is better when you have a one-time need and want a single, stable payment schedule.

Keep in mind that a HELOC is usually variable rate and can move with prime rate changes. A refinance can lock in a fixed rate for 1–5 years, providing certainty. Use this calculator to estimate your equity and then discuss with your lender whether a HELOC, a refinance, or a combination is the right choice for your goals.

⚠️ Risks and Best Practices for HELOC Borrowing

A HELOC gives you valuable access to home equity, but it is still a form of debt secured by your house. If property values fall or you struggle to make payments, the lender can require repayment. For this reason, only use a HELOC for things with clear value, such as home repairs, debt consolidation at lower interest, or business investment.

Avoid using a HELOC for discretionary spending like vacations or luxury items. Keep the balance manageable, and if possible, make more than the minimum payment to reduce interest over time. The calculator shows your borrowing room so you can make an informed decision instead of borrowing more than you need.

🔎 What Lenders Look At in 2026

Lenders evaluate more than just your LTV. They also look at your credit score, debt service ratios, employment history, and proof of income. Since 2020, lenders have been especially cautious with debt service — they want to make sure you can afford the payments even if interest rates rise.

Your HELOC application will typically be stress tested at your HELOC rate plus 2%, or 5.25%, whichever is higher. This means your ability to qualify depends on the cost of the HELOC even before you take any money out. Use the calculator to estimate your equity, but discuss qualification details with the lender before applying.

🔗 Related Calculators

📋 HELOC and home equity guidance is based on OSFI Guideline B-20 and typical Canadian lending practice. Prime rate assumptions are for 2026 and may change. This tool is an estimate; final borrowing capacity depends on lender appraisal, income verification, credit score, and debt service ratios. See our full disclaimer.