How much home equity can I borrow in Canada?
Canadian lenders generally let you borrow up to 80% of your home's appraised value across all mortgages combined, minus your existing mortgage balance. So on a $600,000 home with a $300,000 mortgage, you could access up to $180,000 (80% of $600,000 = $480,000, minus the $300,000 mortgage).
What is the 65% HELOC limit?
Under OSFI Guideline B-20, the revolving portion of a home equity line of credit (HELOC) is capped at 65% of the property value. You can still reach 80% total loan-to-value, but any amount between 65% and 80% must be a fixed, amortizing loan rather than an open revolving line of credit.
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving line of credit — you draw and repay as needed and pay interest only on what you use, capped at 65% of value. A home equity loan (or second mortgage) advances a lump sum with fixed payments and can bring you up to the 80% total limit. Many buyers combine both.
Do I need to requalify to access my equity?
Yes. Even with sufficient equity, lenders apply income verification, debt-service ratios, and the mortgage stress test (qualifying at a higher rate). Your approved amount may be lower than your equity allows if your income or credit does not support the larger debt.