Home Equity Calculator Canada 2026
Find out how much equity you have in your home, your current loan-to-value ratio, and the maximum you can borrow through a HELOC under OSFI's 65% and 80% LTV rules.
Your Home Details
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Your Results
Enter your home value and mortgage balance to see your equity and HELOC limit.
Home Equity
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HELOC Borrowing Capacity (OSFI B-20)
Current LTV
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Loan-to-value ratio
LTV After Full Draw
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If HELOC fully used
Monthly Interest
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On current HELOC balance
Equity as % of Value
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Ownership stake in home
Home Equity and HELOCs in Canada: 2026 Guide
🏠 What Is Home Equity?
Home equity is the portion of your home's value that you own outright — the difference between what your home is worth and what you still owe on your mortgage. If your home is worth $800,000 and you have $350,000 remaining on your mortgage, you have $450,000 in equity. Equity grows in two ways: as you pay down your mortgage principal, and as your home's market value increases over time. You can access this equity without selling by using a home equity line of credit (HELOC) or by refinancing your mortgage.
📏 The Two OSFI LTV Rules
Under OSFI Guideline B-20, Canadian lenders must apply two simultaneous borrowing limits on HELOCs. Your actual borrowing limit is the lesser of both rules:
Rule A — 65% Cap
The standalone HELOC cannot exceed 65% of your home's appraised value. On an $800,000 home, this means a maximum HELOC of $520,000 — regardless of your mortgage balance.
Rule B — 80% Combined
Your mortgage balance plus the HELOC limit cannot exceed 80% of your home's value. On an $800,000 home with a $400,000 mortgage, this limits the HELOC to $240,000.
📊 HELOC vs. Mortgage Refinance
| HELOC | Mortgage Refinance | |
|---|---|---|
| Maximum LTV | 65% (standalone) | 80% (one-time) |
| Rate type | Variable (prime +) | Fixed or variable |
| Repayment | Interest-only minimum | Principal + interest |
| Flexibility | Revolving — borrow, repay, re-borrow | One-time lump sum |
| Best for | Ongoing access, flexibility | Large one-time needs, rate certainty |
❓ Frequently Asked Questions
How much can I borrow with a HELOC in Canada?
Under OSFI Guideline B-20, the lesser of: 65% of your home's appraised value, or 80% of your home's value minus your outstanding mortgage balance. For example, on a $700,000 home with a $300,000 mortgage: Rule A gives $455,000, Rule B gives $260,000 — so your HELOC limit is $260,000. Your lender will also assess your income, credit score, and debt service ratios before approving.
Is HELOC interest tax deductible in Canada?
HELOC interest is tax deductible only if the borrowed funds are used to earn income — for example, to invest in stocks, bonds, or a rental property. The CRA's "direct tracing" rule requires a clear link between the HELOC draw and the income-producing investment. Interest on HELOC funds used for personal purposes (renovations to your principal residence, vacations, debt consolidation) is not deductible. Consult a tax professional before claiming HELOC interest as a deduction.
What is the current HELOC interest rate in Canada?
Canadian HELOCs are variable-rate products priced at the lender's prime rate plus a spread. With the Bank of Canada's prime rate at 4.95% in 2026, most major bank HELOCs are priced at 5.45%–5.95% (prime + 0.50% to prime + 1.00%). Your actual rate depends on your credit score, LTV ratio, and lender relationship. Borrowers with strong credit and low LTV can often negotiate below the posted spread.
What is the stress test for a HELOC in Canada?
Yes — the mortgage stress test applies to HELOCs at federally regulated lenders. You must qualify at the higher of your contracted HELOC rate plus 2%, or 5.25%. At a 5.45% HELOC rate, the stress test rate would be 7.45%. Note that for qualification purposes, the HELOC payment is calculated as interest-only on the limit (not just the drawn balance), which affects your TDS ratio calculation.