HELOC calculator in Canada 🇨🇦

HELOC calculator in Canada in 2023. How to calculate payments on a HELOC? How to work with a HELOC calculator? HELOC rates. What can I find out using a HELOC calculator?

Apply Online in Minutes

Switch your mortgage to Coast Capital

Mortgage interest rates for March 2023

We collect and analyze the best mortgage interest rates in Canada on a daily basis

Max Rate (5-year Fixed) 6.49 %
Min Rate (5-year Fixed) 4.45 %
Average Rate (5-year Fixed) 6.45 %
Max Rate (10-year Fixed) 8,1 %
Min Rate (10-year Fixed) 5,19 %
Average Rate (10-year Fixed) 5,75 %
Max Rate (25-year Fixed) 10 %
Min Rate (25-year Fixed) 7,58 %
Average Rate (25-year Fixed) 9,75 %
Nesto

Get 1% cashback on your mortgage value (Up to $9,250*) mortgage cashback

4.54 %
Profitably

Rent vs Buy: What is cheaper in Canada?

We have prepared for you an analytical block to help you compare the financial advantages of renting and taking out a mortgage loan. With the help of this chart, you can figure out whether, at the moment, it is more profitable to rent a property or to buy it. The data is relevant for March 2023 of the year and does not consider inflation and the rise in the price of real estate.

1 bd condo
2 bd condo
3 bd condo
2 bd home
3 bd home
4 bd home
4+ bd home
Mortgage is cheaper!
On 26.03.2023 Mortgage is cheaper than Rent
10 C$ Your benefit!

Benefit for 1 year
120 C$

Benefit for 5 years
600 C$
Average data in Canada for March 2023 of the year
We collect and analyze the cost of real estate in Canada on a monthly basis
Mortgage
1 490 C$

Rent
1 500 C$

Difference
10 C$
Rent is cheaper!
On 26.03.2023 Rent is cheaper than Mortgage
80 C$ Your benefit!

Benefit for 1 year
960 C$

Benefit for 5 years
4 800 C$
Average data in Canada for March 2023 of the year
We collect and analyze the cost of real estate in Canada on a monthly basis
Rent
1 800 C$

Mortgage
1 880 C$

Difference
80 C$
Rent is cheaper!
On 26.03.2023 Rent is cheaper than Mortgage
430 C$ Your benefit!

Benefit for 1 year
5 160 C$

Benefit for 5 years
25 800 C$
Average data in Canada for March 2023 of the year
We collect and analyze the cost of real estate in Canada on a monthly basis
Rent
2 300 C$

Mortgage
2 730 C$

Difference
430 C$
Rent is cheaper!
On 26.03.2023 Rent is cheaper than Mortgage
3 150 C$ Your benefit!

Benefit for 1 year
37 800 C$

Benefit for 5 years
189 000 C$
Average data in Canada for March 2023 of the year
We collect and analyze the cost of real estate in Canada on a monthly basis
Rent
1 800 C$

Mortgage
4 950 C$

Difference
3 150 C$
Rent is cheaper!
On 26.03.2023 Rent is cheaper than Mortgage
3 960 C$ Your benefit!

Benefit for 1 year
47 520 C$

Benefit for 5 years
237 600 C$
Average data in Canada for March 2023 of the year
We collect and analyze the cost of real estate in Canada on a monthly basis
Rent
2 500 C$

Mortgage
6 460 C$

Difference
3 960 C$
Rent is cheaper!
On 26.03.2023 Rent is cheaper than Mortgage
2 960 C$ Your benefit!

Benefit for 1 year
35 520 C$

Benefit for 5 years
177 600 C$
Average data in Canada for March 2023 of the year
We collect and analyze the cost of real estate in Canada on a monthly basis
Rent
3 500 C$

Mortgage
6 460 C$

Difference
2 960 C$
Rent is cheaper!
On 26.03.2023 Rent is cheaper than Mortgage
3 450 C$ Your benefit!

Benefit for 1 year
41 400 C$

Benefit for 5 years
207 000 C$
Average data in Canada for March 2023 of the year
We collect and analyze the cost of real estate in Canada on a monthly basis
Rent
4 000 C$

Mortgage
7 450 C$

Difference
3 450 C$

Bank branches where you can apply for a mortgage in Canada

Choose a branch in your region where you can apply for a mortgage

Bank name Max amount Rate Address

Compare Mortgage Offers Today 26.03.2023

Use the mortgage loan matching configurator. Select the necessary parameters and click on the "Show" button

HELOC
Brokers
Reverse
Refinance
Conventional
Lenders
High-Ratio
Low-Ratio
Syndicated
Self-Employed
Second
Private
Commercial
C$100,000
C$150,000
C$200,000
C$250,000
C$300,000
C$350,000
C$400,000
C$450,000
C$500,000
C$550,000
C$600,000
5-years
5-years
10-years
15-years
25-years
300
300
650
850
1000

Mortgage offers

Start your housing search with our HELOC calculator

Calculate your monthly payment Step 1

It might be a good idea to figure out how much you can spend before applying for a mortgage, as your monthly payment will be your most significant expense. For your convenience, we designed a user-friendly mortgage payment calculator that takes into account many factors, for example, your insurance costs and interest deduction.

Look through the terms and conditions Step 2

Check out the mortgage options available in Canada in March, 2023. The system will select the most relevant offers according to the results of your calculation.

Check your credit score Step 3

To assess the mortgage loan approval probability, we recommend you check your credit score through our website. It is free. The minimum rating required for a mortgage with a traditional lender is 680. If your rating is lower than 680, we could recommend you a mortgage broker.

Check your debt Step 4

Buying a house is one of the most important money moves you'll ever make. It might be helpful to check if you owe money to someone before starting your house-hunting journey. To do it, you could use our debt-checking service. It's free. Banks tend to favor debt-free customers; therefore, if you see yourself in arrears, you’d better pay off all your debts before applying for a mortgage loan.

Apply Step 5

If your credit score is at least 680 and you don't have any outstanding debts, we recommend you start the application process. To apply for a mortgage, you can go to the bank's website by clicking the corresponding button in the offers listed above. Alternatively, you can use our mortgage application form.

Wait for the decision Step 6

Mortgage experts of the selected bank will assess your credit score and legal and financial risks associated with your application. After that, you will receive the decision on your application.

Find the right home Step 7

After your credit limit is approved, you can start looking for a home. If you need help figuring out where to start, you could take advantage of real estate websites such as REALTOR.ca, centris.ca, and zolo.ca to find your dream house.

What is HELOC?

HELOC is a home equity line of credit. It's a revolving line of credit that is secured against your home.

Home equity is the market value of your home minus the outstanding mortgage amount and/or other loans and lines secured against it.

If your home appraised value is $700,000 and your outstanding home loan balance is $200,000, your home equity is $500,000.

There are several types of home equity loans: a traditional mortgage, a home equity line of credit, and a reverse mortgage.

A traditional mortgage is a first, second, and other debt secured by your property. A lender offers this home equity loan as a lump sum payment with a fixed repayment period and fixed monthly payment.

With a line of credit, borrowing is an ongoing process: borrow, pay back, and borrow again, up to your maximum credit limit, anytime without a prepayment penalty.

Important! You can borrow money for debt consolidation, home improvement, investment, etc.

During a HELOC application process, the lender determines the available credit amount and uses your home to guarantee you'll pay back the borrowing money.

The interest rate is variable and depends on the lender's prime rate. Therefore, it could help to save money. However, it's more complicated to calculate the variable rates than the fixed rate.

There are two main types of Canadian home equity line of credit:

Definite Term HELOC

It has a pre-decided maturity period, further divided into two parts: the draw period and the amortization period. A homeowner can draw money from the credit line during the draw period. Usually, it lasts for three to ten years.

Within this period, the borrower may make only interest payments on the outstanding home loan balance; principal repayment is not necessarily required. However, your minimum monthly payment can change as your exceptional balance changes. As you make a payment, your available credit increases by the amount of the payment that went toward the principal balance.

When the draw period ends, the borrower can not take a credit line from HELOC or second mortgage — the repayment period begins.

The next period is the amortization period, in which the home owner’s credit liability is amortized over the remaining term (from five to fifteen years). During this period, the borrower should also make interest and principal payments.

Indefinite Term HELOC

This type of HELOC can last indefinitely, and there is no specific difference between a draw and a repayment period. It looks like a credit card, where the credit is drawn, revolved, and repaid on demand. A credit limit limits the credit draws, and you can not withdraw money from the credit line beyond the HELOC limit.

You have different repayment options: make interest payments or repay the principal amounts whenever you like without any prepayment penalties. The interest is charged on the outstanding loan balance. Most lenders in Canada offer indefinite-term HELOCs.

Fees may vary between home equity lines of credit.

Some typical fees are:

  • A home appraisal or valuation fees: the fee is charged to assess your home’s value;

  • Legal fees: the fee to register the collateral charge on your home;

  • Title search fees: another legal fee to ensure there are no liens on your home;

  • Administration fees: the fee charged by a lender to make and maintain your account;

  • Credit insurance fees: different types of insurance, which are usually optional: life, critical illness, disability, and job loss insurance;

  • Discharge or cancellation fees: this fee is charged if you cancel your home equity line of credit and remove the collateral charge from the title of your home. An early closure fee may be charged if you close your HELOC within a few years of opening. A minimum balance or minimum draw could be required at closing.

To qualify, a HELOC applicant must:

  • Be a homeowner

  • Have a good credit score (620 — 740+) for a basic line of credit

  • Have a proven stable income

  • Debt to income ratio of about 40 — 50% of your gross monthly income

  • The remaining equity in your home is at least 20%

In general, the more equity you have in your home, the more amount of HELOC you can qualify for.

What is a HELOC calculator?

When you apply for a HELOC, the lender decides on your loan amount. But you can calculate the amount by yourself in advance with the assistance of a HELOC Calculator.

Reference! The home equity line of credit calculator is a type of financial calculator designed to make your loan calculations easy and fast.

A home equity calculator helps to find out how much equity is in your home before deciding to apply for a home equity loan or HELOC.

If you borrow money from a bank in Canada, a HELOC could not exceed 65% of your home's appraised value. It is called LTV — loan to value ratio; it is the maximum amount, in a percentage, that your bank or another lender could allow you to borrow compared to your home’s value.

You can get a mortgage plus a HELOC loan as well. It may be up to 80% of your home equity — the maximum loan-to-value ratio in Canada.

To find out a HELOC amount:

  1. First, input the data in the online form.

  • the home's current appraised value (the amount of money that you think your home is worth);

  • the outstanding home loans total (total amount of all existing loans secured by your home).

If your home is worth $700,000 and you have a mortgage for $200,000, your line of credit may be up to $200,000.

  1. Some calculators let you fill in your credit rate or change the maximum loan to value ratio limit from standard 80% to what your lender offers to get.

  2. Click the «Calculate» button.

  3. Review your amount value, table, and chart. You can find detailed calculation results in the online or pdf report.

Typically by changing any value in the online form fields, the calculated values immediately appear for displayed output values.

However, your HELOC limit, monthly payment, and other terms and conditions could be different as the lender may use its algorithm of calculation and evaluation criteria.

The formula to calculate the HELOC amount in total outstanding home loan balances is:

Home Value x LTV% - Mortgage Balance = HELOC Amount

Using the home equity line of credit calculator, you can save money and easily consider how your HELOC amount will change if you raise your property value or pay off the home loan's balance at first.

Home equity loans vs. HELOCs

Home equity line of credits and home equity loans use your home as collateral and are considered second mortgages.

A home equity loan is a one-time loan secured by your home. It can be up to 80% of your home’s value. The lender provides you with a lump sum of money upfront.

Line of credit gives you ongoing access to cash when needed with any frequency. Its amount could be as much as 65% of home equity. You only make payments when you owe money and have to make at least interest payments.

Unlike HELOC, any home equity loan as a traditional second mortgage isn't a revolving line of credit, which allows you to borrow and pay according to your repayment schedule. In addition, a mortgage has an amortization period that HELOCs in Canada typically do not have.

You must make regular fixed mortgage payments on your home equity loan that cover principal and interest every payment period according to your fixed schedule. And there are fees, insurance, and services costs, which could be included in the home loan cost or paid upfront.

The borrowing rate you could apply for generally depends on your credit score and income. For a home equity loan, the interest rate is usually a fixed rate — it does not change during the life of a loan.

The HELOC's interest rate is variable. It means that the rate changes in accordance with the Canadian prime rate. Usually, its interest rates are the lowest among different lending solutions in Canada. However, the appraisal, legal, additional fees, and closing costs may vary.

A home equity line of credit gives some options that borrowers couldn't have access to with a home equity loan. For example, a home equity line of credit could be used to improve an existing asset to generate wealth.

For example, if you borrow money for home renovations, the profit from the improvements could be more than the amount paid on the interest rate of the home equity line of credit. It is specifically true for home selling.

It also will work effectively if you use it for debt consolidation or are financing something long-term, for instance, a student loan. The interest rate on the home equity line of credit may be lower than a regular student loan.

To compare the line of credit and home equity loan lending options, borrowers should carefully consider monthly payments, fees, and interest rates.

How to calculate payments on a HELOC?

Manually

To calculate your home equity line of monthly credit payment using the formula:

HELOC Balance × Interest Rate / 12 months = Minimum Interest-Only payment

Using a calculator

The HELOC payment calculator lets you compute payments easily and quickly.

Input your HELOC amount and interest rate. For example, you want to borrow $200,000 with 4,45%. Your interest-only payments will be $724 monthly.

Note: you need to pay more to settle up your loan in the future.

You may use the HELOC Payoff Calculator to find out how much you should pay. Input your home equity line of credit amount, interest rate, and payoff loan term in months.

Let's look at the same example: the loan amount is $200,000 with a 4,45% interest rate. So if you want to pay it back for 60 months, your monthly payments should be $3,724.

You could pay back the principal borrowed amount in full at any time.

You may see that it's much more than minimum interest-only payments. So be careful when applying for a HELOC; take it only when you need it.

The calculator may help you evaluate your budget and loan options and consider if the line of credit suits your financial needs and goals.

Comparing lenders with a HELOC calculator

A home equity line of credit calculator usually provides the feature to compare home equity rates.

You can find a lender with the best rate or choose between different HELOCs listed in a table. You can fill in your desired loan amount and your home appraised value, outstanding mortgage balance, loan term plus, sometimes, credit rate to find a suitable lending offer.

Alexandra V
Editor
Alexandra V
03.08.2022
-
Last update 25.01.2023

Other mortgage calculators

Mortgage calculator
What is a mortgage calculator in Canada and how it works
Refinance mortgage calculator
What is a refinance mortgage calculator in Canada and how it works
Mortgage affordability calculator
What is a mortgage affordability calculator in Canada and how it works
CMHC mortgage calculator
What is CMHC mortgage calculator in Canada and how it works
Vancity mortgage calculator
What is Vancity mortgage calculator in Canada and how it works
Realtor mortgage calculator
What is Realtor mortgage calculator in Canada and how it works
FCC mortgage calculator
What is FCC mortgage calculator in Canada and how it works
Desjardins mortgage calculator
What is Desjardins mortgage calculator in Canada and how it works
Ratehub mortgage calculator
What is Ratehub mortgage calculator in Canada and how it works
Commercial mortgage calculator
What is Commercial mortgage calculator in Canada and how it works
Mortgage payoff calculator
What is mortgage payoff calculator in Canada and how it works

Canadian banks mortgage calculators

TD mortgage calculator
TD mortgage calculator
What is TD Mortgage Calculator in Canada and How it Works
RBC mortgage calculator
RBC mortgage calculator
What is RBC mortgage calculator in Canada and how it works
Scotiabank
Scotiabank
What is Scotiabank Mortgage Calculator in Canada and how it works
BMO mortgage calculator
BMO mortgage calculator
What is BMO mortgage calculator in Canada and how it works
CIBC mortgage calculator
CIBC mortgage calculator
What is CIBC mortgage calculator in Canada and how it works
Tangerine mortgage calculator
Tangerine mortgage calculator
What is Tangerine mortgage calculator in Canada and how it works
ATB mortgage calculator
ATB mortgage calculator
What is ATB mortgage calculator in Canada and how it works
Coast Capital mortgage calculator
Coast Capital mortgage calculator
What is Coast Capital mortgage calculator in Canada and how it works
Simplii Financial mortgage calculator
Simplii Financial mortgage calculator
What is Simplii Financial mortgage calculator in Canada and how it works
HSBC mortgage calculator
HSBC mortgage calculator
What is HSBC mortgage calculator in Canada and how it works
NBC mortgage calculator
NBC mortgage calculator
What is NBC mortgage calculator in Canada and how it works
Equitable Bank mortgage calculator
Equitable Bank mortgage calculator
What is Equitable Bank mortgage calculator in Canada and how it works
Laurentian Bank mortgage calculator
Laurentian Bank mortgage calculator
What is Laurentian Bank mortgage calculator in Canada and how it works
ICICI Bank mortgage calculator
ICICI Bank mortgage calculator
What is ICICI Bank mortgage calculator in Canada and how it works
UNI mortgage calculator
UNI mortgage calculator
What is UNI mortgage calculator in Canada and how it works
Manulife Bank mortgage calculator
Manulife Bank mortgage calculator
What is Manulife Bank mortgage calculator in Canada and how it works
CWB mortgage calculator
CWB mortgage calculator
What is CWB mortgage calculator in Canada and how it works
FNBC mortgage calculator
What is FNBC mortgage calculator in Canada and how it works
Motusbank mortgage calculator
Motusbank mortgage calculator
What is Motusbank mortgage calculator in Canada and how it works
B2B mortgage calculator
What is B2B mortgage calculator in Canada and how it works
BDC mortgage calculator
BDC mortgage calculator
What is BDC mortgage calculator in Canada and how it works
Alterna Bank mortgage calculator
Alterna Bank mortgage calculator
What is Alterna Bank mortgage calculator in Canada and how it works
Servus mortgage calculator
Servus mortgage calculator
What is Servus mortgage calculator in Canada and how it works
Meridian Credit Union mortgage calculator
What is Meridian Credit Union mortgage calculator in Canada and how it works
Assiniboine mortgage calculator
What is Assiniboine mortgage calculator in Canada and how it works
Affinity mortgage calculator
What is Affinity mortgage calculator in Canada and how it works
Cambrian mortgage calculator
What is Cambrian mortgage calculator in Canada and how it works
Conexus mortgage calculator
Conexus mortgage calculator
What is Conexus mortgage calculator in Canada and how it works
Northern mortgage calculator
What is Northern mortgage calculator in Canada and how it works
Access mortgage calculator
What is Access mortgage calculator in Canada and how it works
SCU mortgage calculator
What is SCU mortgage calculator in Canada and how it works
Coastal Community mortgage calculator
What is Coastal Community mortgage calculator in Canada and how it works
East Coast mortgage calculator
What is East Coast mortgage calculator in Canada and how it works
Innovation mortgage calculator
What is Innovation mortgage calculator in Canada and how it works
Prospera mortgage calculator
Prospera mortgage calculator
What is Prospera mortgage calculator in Canada and how it works
Kawartha mortgage calculator
What is Kawartha mortgage calculator in Canada and how it works
Bayview mortgage calculator
What is Bayview mortgage calculator in Canada and how it works
Connect First mortgage calculator
What is Connect First mortgage calculator in Canada and how it works
Sydney mortgage calculator
What is Sydney mortgage calculator in Canada and how it works
Gulf & Fraser mortgage calculator
What is Gulf & Fraser mortgage calculator in Canada and how it works
Libro mortgage calculator
What is Libro mortgage calculator in Canada and how it works
Sunova mortgage calculator
What is Sunova mortgage calculator in Canada and how it works
PACE mortgage calculator
What is PACE mortgage calculator in Canada and how it works
Westoba mortgage calculator
What is Westoba mortgage calculator in Canada and how it works
Me-Dian mortgage calculator
What is Me-Dian mortgage calculator in Canada and how it works
Cornerstone mortgage calculator
What is Cornerstone mortgage calculator in Canada and how it works
Fusion mortgage calculator
What is Fusion mortgage calculator in Canada and how it works
​FirstOntario mortgage calculator
What is ​FirstOntario mortgage calculator in Canada and how it works
Sunshine Coast mortgage calculator
What is Sunshine Coast mortgage calculator in Canada and how it works
Kindred mortgage calculator
What is Kindred mortgage calculator in Canada and how it works
Sunrise mortgage calculator
What is Sunrise mortgage calculator in Canada and how it works