HELOC Limit Calculator
Knowing Is Planning
HELOC Limit Calculator
Accurate to 2026 OSFI Banking Regulations.
Withdrawal Estimator
Disclaimer: This tool uses standard Canadian 80/65 Loan-to-Value (LTV) rules. As of 2026, combined mortgage and HELOC products from federally regulated lenders require principal repayment on any portion exceeding 65% LTV. This calculator is for educational purposes and does not account for specific lender stress-test requirements. Contact Lendtoday.ca for a formal qualification.
Broker Tip: The “65% Amortization” Switch “Many homeowners don’t realize that under the latest OSFI regulations, your HELOC is actually two different products in one. Any portion of your line of credit that falls below 65% of your home’s value can be ‘revolving’ (interest-only payments). However, if you borrow between 65% and 80%, that top slice must be ‘amortized’—meaning you have to pay back principal and interest on that specific portion. If you’re looking for maximum cash flow, we usually aim to keep your total borrowing under that 65% ‘sweet spot’.”
Can I have a HELOC with a different bank than my mortgage?
Yes. This is called a “Second Position HELOC.” While your main bank might offer you a combined product, we can often secure a standalone HELOC from a different lender without you having to break your current low-rate mortgage.
Does a HELOC have a "term" like a mortgage?
Standard HELOCs are “open-ended,” meaning they don’t expire as long as you make your payments and the bank doesn’t see a significant change in your credit or home value. However, some lenders offer “Fixed-Rate Sub-Portions” where you can lock in a segment of your HELOC balance at a fixed rate and term.
What are the upfront costs to set up a HELOC?
Since a HELOC is registered against your property title, you should budget for:
Appraisal Fee: Roughly $300 – $500 to confirm your home’s value.
Legal/Title Fees: Roughly $600 – $1,000 for a lawyer to register the charge.
Note: Some “A-Lender” promotions may waive these fees if you switch your entire mortgage to them.
Is the interest on a HELOC tax-deductible?
In Canada, interest is generally tax-deductible only if the funds are used to earn income (e.g., investing in a non-registered account, buying a rental property, or business expenses). If you use it for a kitchen reno or a vacation, it is not deductible. Always consult with an accountant for your specific situation.
Can the bank lower my HELOC limit?
Technically, yes. Because a HELOC is a “demand loan,” a lender has the right to reduce your limit if your credit score drops significantly or if the housing market in your area sees a major decline. This is rare but important to keep in mind.
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