Home equity line of credit
Borrow against your home when you need to, and only pay interest on what you use
A HELOC is a revolving line of credit secured by your home. You're approved for a limit, you draw what you need, and you pay interest only on what you've used. In Canada the limit is 65% of your home's value on its own, or 80% combined with an amortizing mortgage.
No credit check, and no commitment.
What a HELOC looks like
Updated earlierWorked at a $700,000 home with a $350,000 mortgage.
- Combined room (80% LTV)
- $210,000
- 80% of the value, less your mortgage. This is the readvanceable setup, where a HELOC sits beside an amortizing mortgage.Use my numbers
- Revolving room (65% LTV)
- $105,000
- The most that can sit in the revolving line. The remaining $105,000 must amortize.
Rates as of September 21, 2026 at 9:00 a.m. MT, subject to change without notice. O.A.C. Not an offer of credit, a rate hold or a pre-approval. Daniel De Sousa, Mortgage Associate, Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a RECA-licensed mortgage brokerage.
- 65% standalone, 80% combinedThese are the OSFI B-20 limits. Lenders in Canada don't go above them.
- Interest only on what you drawAn undrawn limit costs nothing in interest.
- The rate moves with primeConfirm your lender's current prime rate.
Is a HELOC right for you?
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How HELOC limits work
There are two limits, and they’re easy to mix up. 65% of your home’s value is the most that can sit in a revolving line, the part you can draw, repay and draw again. 80% combined is the most that can be registered against your home in total, HELOC plus mortgage. Anything between 65% and 80% has to be an amortizing portion that you pay down.
On a $700,000 home with a $350,000 mortgage, that’s $210,000 of total room, and $105,000 of it can be revolving. A readvanceable mortgage does both at once. As you pay the mortgage down, the limit on the line goes up by the same amount.
The rate is variable. A HELOC is priced at prime plus a spread and compounds monthly, so it changes the day prime changes. Payments can be interest-only, but interest-only payments don’t reduce the balance at all.
The rules
HELOC rules in Canada
The limits are set by regulation, so they can't be negotiated. The qualifying test surprises a lot of people.
Standalone ceiling
Calculate yours65% of appraised value, less any prior charges. This is the revolving portion.
OSFI Guideline B-20.
Combined ceiling
80% of appraised value across everything registered, HELOC plus mortgage. The part between 65% and 80% must amortize.
On $700,000 with $350,000 owing, that's $210,000 of room.
How you qualify
Run the stress testOn the payment for the full authorized limit at the minimum qualifying rate over 25 years, whatever balance you plan to draw.
So a large unused limit reduces what you can borrow elsewhere.
Rate and compounding
See HELOC ratesVariable, priced at prime plus a spread, compounded monthly. Confirm current pricing with your lender.
It changes the day prime changes. Budget for a higher rate.
Cost to set up
An appraisal and legal registration, typically $1,000 to $1,800 all in. The lender often covers this on a readvanceable product taken at the same time as a mortgage.
There's no penalty on your existing mortgage if it's already readvanceable.
HELOC risks to know first
Read these before you open a line of credit against your home.
It’s secured by your home
Debt that used to be unsecured, like a credit card or a line of credit, becomes debt secured by your house. That’s why the rate is lower, and it’s why the stakes are higher.
The rate is variable
It moves with your lender's prime rate. Budget for the possibility of a higher rate.
Interest-only doesn't reduce the balance
Paying only the interest leaves the balance where it is. Set a repayment schedule you’ll still be comfortable with in 5 years.
Interest-only, per month, on a $100,000 draw
$496/mo
At 5.95%, compounded monthly. None of this payment reduces the balance.
A $100,000 draw at today’s published HELOC rate costs that much every month, and you keep owing $100,000 until you pay it down. The same $100,000 on an amortizing mortgage at a lower fixed rate costs more per month and is paid off in 25 years. Which one fits depends on whether you need the money short term. If you don’t, a refinance is usually the better choice, and we’ll tell you.
HELOC vs refinance vs second mortgage
Choose based on how you'll use the money, then compare rates.
| Measure | HELOC | Refinance | Second mortgage |
|---|---|---|---|
| Best for | Flexible, ongoing access | One large, planned amount | Access when a refinance won’t work |
| How it works | Revolving limit. Draw and repay as you like; interest only on the balance drawn. | Replace your existing mortgage with a bigger one and take the difference in cash. | A new loan sitting behind your existing mortgage, which is left untouched. |
| Limit | 65% LTV standalone, 80% combined | 80% LTV | Typically to 80–85% LTV |
| Rate | Variable, prime plus a spread. Confirm current pricing with your lender. | Fixed or variable mortgage rates, the lowest of the three | Highest of the three, plus lender and brokerage fees |
| Penalty to set up | None on your existing mortgage if it is readvanceable | Yes, if you break mid-term | None on your existing mortgage |
| Watch out for | The rate moves with prime. A large limit you never draw still affects your other credit applications. | Full requalification, including the stress test. | Cost. Use it as a short-term bridge to a better setup. |
Not sure which fits? Read the refinance page, then run your own numbers. Or tell us your situation and we’ll tell you which one we’d use and why.
Today's rates
Today's HELOC and mortgage rates
HELOC rates follow prime. Mortgage rates follow the bond market. So the two change at different times and for different reasons.
Effective September 21, 2026 at 9:00 a.m. MT
| Term | Rate | APR | Payment per $100,000 | Who it’s for | Get this rate |
|---|---|---|---|---|---|
| HELOCPrime + 1.50% | 5.95% | 5.95% | — | Uninsured | Hold this rate |
| 5-year variablePrime − 0.25% | 4.20% | 4.25% | $537/mo | Uninsured | Hold this rate |
| 5-year fixed | 4.09% | 4.14% | $531/mo | Uninsured | Hold this rate |
Payment per $100,000 assumes a 25-year amortization, monthly payments and semi-annual compounding. We calculate it from the rate in the same row. Run it on your own number.
Rates shown are current as of September 21, 2026 at 9:00 a.m. MT and are subject to change without notice. Rates are available on approved credit (O.A.C.) only, are subject to the terms and conditions of the applicable lender, and may vary based on your credit history, income, down payment or equity, loan-to-value, property type and location, occupancy, amortization, and whether the mortgage is insured, insurable or uninsured.
Annual percentage rates (APR) shown assume a mortgage amount of $500,000, an amortization of 25 years with monthly payments, and include no lender or brokerage fees. Fixed rates are compounded semi-annually, not in advance, as required under section 6 of the federal Interest Act; variable rates are compounded monthly. Payment figures exclude property taxes, heating, condominium fees and default insurance premiums unless stated. Insured rates require mortgage default insurance and are available only on qualifying transactions.
Rates may contain errors or omissions and do not constitute an offer of credit, a rate hold or a pre-approval. Not all applicants will qualify. Contact Daniel De Sousa, Mortgage Associate, to confirm the rate available to you. Daniel De Sousa is licensed by the Real Estate Council of Alberta (RECA) and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
A HELOC has no term and no amortization, so there’s no payment-per-$100,000 figure for it. The payment is the interest that has built up on what you’ve drawn. That’s why the payment looks small while the balance stays the same.
What a variable rate means for your payment. With a variable-rate mortgage your interest rate moves with your lender’s prime rate. Depending on the product, either your payment changes with the rate, or your payment stays the same and the split between principal and interest changes. With a fixed-payment variable mortgage, if rates rise far enough your payment may no longer cover all the interest you owe. That point is called your trigger rate. Past it, your balance can grow instead of shrink. This is called negative amortization, and your lender will typically require you to increase your payment or make a lump-sum payment. We’ll show you your trigger rate before you choose a variable product, and we’ll tell you what happens if you reach it.
Calculators
Run your own numbers
Free, with no email required. They use Canadian rules: semi-annual compounding, the down payment ladder and the stress test.
HELOC
Your standalone and combined room, the interest-only payment, and the qualifying payment.
Refinance break-even
Another way to reach your equity, with the break-even against your penalty.
Debt consolidation
Before and after payment, and the total-interest figure both ways.
Mortgage payment
What the same money costs as an amortizing mortgage instead.
Stress test
How a full authorized limit is counted against your ratios.
Prepayment
How much you save by paying the line down on a schedule.
Daniel De Sousa, Mortgage Associate with Indi Mortgage
Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage · RECA licensed · 4990 92 Ave NW #105, Edmonton. Verify our licence on RECA ProCheck(opens in a new tab)
Client reviews posted here are unedited, and each one names who handled the file. We don’t pay for reviews or filter them.
Daniel De Sousa
Mortgage Associate, Indi Mortgage
Handles readvanceable mortgage-plus-HELOC structures, staged renovation financing, self-employed cash-flow buffers. Licensed by the Real Estate Council of Alberta and registered with Indi Mortgage, working out of the Edmonton office at 4990 92 Ave NW #105. Verify our licence on RECA ProCheck(opens in a new tab)
Daniel De Sousa, Mortgage Associate, is licensed by the Real Estate Council of Alberta (RECA) and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a mortgage brokerage licensed by RECA. Verify our licence on RECA ProCheck(opens in a new tab)
Monday–Friday, 9:00 a.m.–5:00 p.m. Mountain Time. Closed Saturday and Sunday. Book 15 minutes if that’s easier.
HELOC questions
How much can I get?
Up to 65% of your home’s appraised value for a standalone HELOC. If you’re combining it with a mortgage in a readvanceable product, take 80% of the value and subtract your mortgage balance. On a $700,000 home with a $350,000 mortgage, 80% of $700,000 is $560,000, less $350,000, leaves $210,000 in HELOC room. Calculate yours.
Do I have to use it?
No. An undrawn HELOC costs nothing in interest. When you apply for other credit, though, lenders usually count the full limit in your debt service ratios, not the drawn balance. A large line you never touch can still reduce what you qualify for elsewhere.
Is it better than a personal loan or a credit card?
The rate is much lower: prime plus a spread, compared with 12–22%. The risk is higher, because your home is the collateral. Use it for things that build value or need low-cost borrowing. Skip it for spending you’d regret at 22%.
Can I get a HELOC if I just bought?
Yes, once you have enough equity. With 20% down, you’re at 80% LTV on day one, which leaves no standalone HELOC room. The home would need to go up in value, or you’d need to pay down some principal first.
How does a lender qualify me for a HELOC?
Lenders use the payment on the full authorized limit at the minimum qualifying rate, amortized over 25 years. The balance you plan to draw doesn’t change that. So a bigger limit has a cost: the full amount counts against you the next time you apply for credit.
What is a readvanceable mortgage?
A mortgage and a HELOC registered together under one collateral charge, usually to 80% of value. As you pay the mortgage down, the available limit on the line goes up by the same amount. It’s convenient, with one drawback: a collateral charge can be harder and more expensive to move to another lender at renewal. We’ll tell you what a switch would cost before you take one.
Related mortgages
Find out how much HELOC room you have
Fill in 3 fields. Daniel, a licensed mortgage associate, will get back to you with your standalone and combined room, what the line would cost, and whether a HELOC is the right fit.
- We check whether your mortgage is already readvanceable. If it is, setup may cost you nothing.
- You'll see the qualifying payment on the full limit, so you know how it affects your next application.
- If a refinance fits better, we'll tell you.
Prefer to talk? (825) 797-5417 · Mon–Fri 9–5 MT
How we get paid. Daniel De Sousa arranges mortgages through Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a licensed mortgage brokerage, not a lender. The brokerage and Daniel are compensated by the lender you choose when your mortgage funds (paid by the lender, not by you). Compensation varies by lender and product and doesn’t change the rate you’re quoted. A lender fee or brokerage fee is uncommon and happens mainly on alternative or private lending. If one applies to your file, we’ll disclose the exact amount in writing before you sign anything. We’ll tell you if any product we recommend pays us more than an alternative we considered. Before we start work on your file, you’ll receive a written service agreement setting out our services, our compensation and any fee that applies to you.
Know your HELOC limit before you need the money
It takes about two minutes and there's no credit check. You'll see your available room and what drawing on it costs.
No credit check, and no commitment.