Projected home equity growth
Property value minus projected secured debt
Canada · CAD
Canada home equity calculator.
Estimate how much of your home you own, potential HELOC room and amortizing secured borrowing under Canadian planning limits.
Home-value sensitivity
Estimated equity after proposed borrowing and planned mortgage paydown
| Value change | Property value | Secured debt | Home equity | Equity percentage | Combined LTV |
|---|
Year-by-year equity projection
Uses the entered appreciation and mortgage-paydown assumptions
| Year | Property value | Mortgage and other debt | New borrowing | Total secured debt | Home equity | Combined LTV |
|---|
Planning estimate only—not an appraisal, credit decision or commitment to lend. Lenders apply income, credit, stress-test, property, valuation and product requirements. Borrowing secured by your home puts the property at risk if payments are not made.
Canadian homeowner guide
How much equity do you have in your home?
Home equity is the estimated current value of a property minus mortgages, HELOC balances and other loans secured against it. Equity may increase as principal is repaid or property value rises, and it may fall when home prices decline or more debt is secured against the home.
This Canada home equity calculator separates total equity from potential borrowing room. A lender’s approved value and underwriting decision can differ from the figures entered here.
HELOC borrowing limits in Canada
The Financial Consumer Agency of Canada explains that a HELOC may allow borrowing up to 65% of a home’s value. A combined mortgage and HELOC may have an overall secured limit up to 80%, but lending above 65% should be amortizing and non-readvanceable rather than revolving. This calculator therefore shows estimated room under both thresholds.
Read the federal HELOC consumer guide and OSFI’s secured lending guidance for current details.
Standalone HELOC
A standalone HELOC is revolving credit registered against the home. Available credit does not automatically rise as a separate mortgage is repaid.
Readvanceable mortgage
A combined mortgage-HELOC plan may increase available revolving credit as eligible mortgage principal is repaid, subject to its authorized limit and lender terms.
Home-equity loan
An amortizing secured loan advances a lump sum with scheduled principal and interest payments. It is not reusable revolving credit.
Reverse mortgage
A reverse mortgage is a different later-life product whose balance can grow over time. This calculator does not model reverse-mortgage eligibility, interest accumulation or repayment events.
Total equity versus borrowable equity
Total equity is an ownership calculation; borrowable equity is constrained by loan-to-value limits and underwriting. The calculator subtracts existing mortgage debt and authorized HELOC credit when estimating new room, because a lender may consider committed revolving exposure rather than only the amount currently drawn.
Use the value-sensitivity table to see how a price decline could reduce equity and raise combined LTV. For a focused ratio analysis, use the Canada LTV calculator.
HELOC payments, rates and risks
HELOC rates are commonly variable and linked to a lender’s prime rate. An interest-only minimum payment does not reduce principal, so the balance can remain outstanding indefinitely unless additional payments are made. A rate increase raises the monthly interest cost.
Before borrowing, compare appraisal, legal, registration, discharge and administrative costs, and consider whether an amortizing loan would provide a clearer repayment schedule. A lender will also assess income, existing obligations, credit and ability to pass the applicable stress test.
Canada home equity questions
How is home equity calculated?
Subtract all outstanding mortgages, HELOC balances and other secured debts from the current estimated property value.
Can I borrow 80% of my home’s value through a HELOC?
Not entirely as revolving HELOC credit. The revolving portion is generally limited to 65% of value. Total secured borrowing may reach 80% only when the portion above 65% is amortizing and non-readvanceable, subject to approval.
How much equity is needed for a HELOC?
Federal consumer guidance states that a standalone HELOC generally requires more than 35% equity, while a HELOC combined with a mortgage generally requires at least 20% equity. A lender can require more.
Does unused HELOC credit reduce home equity?
An undrawn line does not reduce dollar equity, but its authorized limit may reduce room for additional secured borrowing.
Are HELOC payments interest-only?
Some products permit minimum payments covering only interest, while others require principal and interest. Paying only interest does not reduce the balance.
Can home equity become negative?
Yes. Negative equity occurs when total secured debt exceeds the property’s current value.