Canada Mortgage

Home Equity Loan Calculator Canada

Turn the equity you have built into a fixed lump sum. See your monthly payment, total interest and payoff timeline before you sign anything.

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Formula

$$M \;=\; P \cdot \frac{r\,(1+r)^{n}}{(1+r)^{n}-1}\quad\text{where }P=\text{principal},\;r=\text{monthly rate},\;n=\text{months}$$
Where
Mmonthly payment
Ploan amount
rmonthly rate
nnumber of months

Canadian fixed-rate home equity loans are usually quoted as nominal rates compounded semi-annually. This calculator uses standard monthly amortization math, which is close enough for estimates — confirm exact payments with your lender. Estimates only — not financial advice.

Estimates only — not financial advice.

Frequently Asked Questions

What is the difference between a home equity loan and a HELOC in Canada?

A home equity loan gives you one lump sum at a fixed rate with a fixed payment schedule. A HELOC is revolving credit with a variable rate — you draw and repay as you like.

How much can I borrow against my home in Canada?

Most Canadian lenders cap total borrowing — your mortgage plus the equity loan — at 80% of your home's appraised value.

Are home equity loan rates fixed in Canada?

Usually, yes. That is the main appeal over a HELOC: your payment never moves. Rates sit above first-mortgage rates because the loan is a second charge on your home.

Can I pay off a home equity loan early?

Yes — extra principal payments cut both the term and total interest. Check your loan agreement for prepayment penalties or limits first.

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