Canada Mortgage

HELOC Calculator Canada

A HELOC is revolving credit secured by your home — draw, repay, and draw again. Estimate your credit limit and interest-only draw-period payments.

Enter Your Details

Home Value

Mortgage Balance

Max LTV

HELOC Rate

Amount You Plan to Draw

Formula

$$\text{Max Line} = V\cdot\text{LTV} - B_{\text{mtg}},\qquad I_{\text{mo}} = \frac{\text{Draw}\cdot r}{12}$$

Where

Vhome value

LTVloan-to-value ratio

B_mtgmortgage balance

Drawamount drawn

rannual rate

I_momonthly interest

Canadian HELOC rates are variable and track your lender's prime rate, so the interest-only payment shown is a snapshot — it moves when prime moves. Estimates only — not financial advice.

Estimates only — not financial advice.

Frequently Asked Questions

How does a HELOC work in Canada?

You get a revolving credit line secured by your home equity. During the draw period you can borrow up to your limit and usually pay interest only; later you repay principal too.

Are HELOC rates fixed or variable?

Almost always variable, tied to your lender's prime rate. When prime moves, your interest-only payment moves with it.

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

A HELOC is flexible revolving credit with a variable rate; a home equity loan is a fixed lump sum at a fixed rate with set payments. HELOCs suit ongoing needs like renovations; lump-sum loans suit one-time costs.

What happens when the draw period ends?

The loan enters the repayment phase, when principal payments are required and the balance amortizes like a standard loan.

Related Calculators

Home Equity Loan Calculator