HELOC limit in Canada: why 65% and 80% aren't the same thing

Short answer: The HELOC limit in Canada works on two levels. The revolving part of a home equity line of credit, the part you can draw, repay and draw again with interest-only payments, can go up to 65% of your home's value ^[1]. Your total borrowing secured by the home, including your mortgage, can usually go up to 80% ^[2]. OSFI's guideline says the portion above 65% should be amortizing, meaning it comes with regular principal payments ^[3]. So 65% and 80% aren't competing rules; they apply to different pieces.

This guide explains how the two limits fit together, what else decides your number, and why your limit can change. To explore your options, see our home equity line of credit page.

The two limits, side by side

Standalone vs combined HELOCs

FCAC describes two types ^[1]:

• Standalone HELOC: a line of credit on its own, often on a home with no mortgage. You need more than 35% equity, and the limit doesn't grow on its own ^[1].
• HELOC combined with a mortgage: a mortgage and a line of credit under one umbrella. You need at least 20% equity, and FCAC notes the available credit increases as you pay down your mortgage principal ^[1].

Three worked examples

Example 1: mortgage-free home worth $800,000 (standalone HELOC)

• 65% of $800,000 = $520,000 maximum on the revolving HELOC.
• 80% of $800,000 = $640,000 in total.
• To reach $640,000, the extra $120,000 would need to be an amortizing loan or mortgage, not part of the revolving line ^[3].

Example 2: $800,000 home with a $400,000 mortgage (combined plan)

• 80% of $800,000 = $640,000 in total.
• $640,000 − $400,000 = up to $240,000 of HELOC room, OAC.
• The revolving part stays well under 65% of value, so that limit doesn't bite here.

Example 3: the same home after paydown or a price drop

• Paydown: at an assumed 4.49% over 25 years, about $8,900 of the first year's mortgage payments goes to principal. On a combined plan, FCAC says available credit grows as principal is paid ^[1], so the HELOC room can rise by about that much.
• Price drop: if the home is revalued at $720,000, 80% is $576,000, and the room over a $400,000 mortgage shrinks to $176,000. OSFI expects lenders to review the authorized HELOC amount after a material drop in value ^[3].

Examples calculated in Python. Rates are assumptions for illustration, not offers.

Want to know your real HELOC limit? A licensed 8Twelve agent can check your value, equity and income against lender rules across 65+ lenders, OAC. Explore HELOC options

What else decides your limit

The percentages set the ceiling. Your actual limit can be lower because of:

• The value the lender accepts. FCAC says the lender may use an appraisal or the purchase price ^[1]; OSFI expects careful valuation, especially in fast-rising markets ^[3].
• Your income and debts. FCAC notes you need to pass the stress test to get a HELOC at a bank ^[1]. In our experience, lenders qualify you as if the full limit were drawn.
• Your choice. FCAC says you can negotiate the limit and ask for a lower one ^[1]. A smaller limit can be a sensible guardrail.
• Other secured debts. Everything registered on the home counts toward 80% ^[2].

Why your limit isn't permanent

OSFI's guideline expects federally regulated lenders to review a HELOC's authorized amount if the home's value drops materially or the borrower's financial situation changes ^[3]. In our experience, that usually means unused room can be reduced; it's one reason not to rely on an unused HELOC as your only emergency fund.

Rates matter too. HELOCs are usually variable and can be interest-only, which doesn't pay the balance down ^[1]. The Bank of Canada raised its policy rate to 2.5% on October 28, 2026, with the next decision on December 9 ^[4], and lenders' prime rates typically follow. On a $100,000 balance, every 0.25-point rise adds about $250 a year in interest. See how lenders price lines in our HELOC rates guide.

HELOC limit or a different tool?

• Need more than 65% with interest-only payments? You can't; the extra has to amortize. Compare a home equity loan.
• Need a one-time lump sum? A refinance may fit better; see HELOC vs refinance.
• Want to see all the ways to borrow? Our home equity takeout guide compares them.

From our desk: the HELOCs that cause trouble are rarely the ones with low limits. They're the ones opened at the maximum and used as income. Set a limit you'd be comfortable seeing fully drawn.

Your HELOC limit has two ceilings: 65% for the revolving line and 80% for everything secured on your home. Equity, income, the lender's valuation and your own choice decide where you land under them, and the limit can change if values fall.

Run the numbers: estimate payments with our mortgage payment calculator, or compare HELOC rates.

This article is for general information only and isn't financial, legal or tax advice. Rates, products and terms change without notice and are available on approved credit (OAC). The rate and terms you qualify for depend on your individual financial situation, including credit, income, property and loan-to-value. "Best rates" means the most suitable options available for your situation, not a guarantee of the lowest rate. Example rates and payments are for illustration only, as of October 2026, and are not an offer. 8Twelve Mortgage arranges mortgages through 65+ lenders and does not lend directly. Licensed across Canada — see our licences.

Examples are for illustration only, as of October 30, 2026, and are not offers. HELOC limits, rates and terms vary by lender and are available OAC. Rules checked against FCAC, OSFI and the Bank of Canada on October 30, 2026. 8Twelve does not lend or fund mortgages, HELOCs or second mortgages; we arrange them with third-party lenders.