In Ontario, a home equity line of credit lets you borrow up to 65% of your home's value on its own, and up to 80% of your home's value once you combine it with your mortgage. What you actually qualify for comes down to your equity, your income, and the mortgage stress test.

You have built real equity in your home, and now you want one number. How much of it can you actually borrow? It is the right question to ask, and in Ontario the answer is clearer than most search results make it look. Below, we break down the two limits that matter, show you how to calculate your own borrowing room, and cover what a lender checks before you put that equity to work.

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How much can you borrow with a home equity line of credit in Ontario?

Start with the two limits that matter. With a HELOC from a major Canadian lender, you can borrow up to 65% of your home's value. When you add your existing mortgage, your total borrowing against the home can reach 80% of that value. Both caps come from federal lending rules, and they apply right across Ontario.

Here is the part the calculators rarely explain. The 65% figure is the ceiling for the revolving line itself, the part you can draw, repay and draw again. The 80% figure is the ceiling for everything secured against your home at once, your mortgage and your HELOC together. You can still borrow in the gap between 65% and 80%, but that portion has to sit in a term loan with set payments, not the revolving line.

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Home equity, in one quick calculation

Your home equity is the share of the home you actually own. The math is simple. Take what your home is worth, then subtract what you still owe on it.

Say a home is worth $500,000 with $300,000 still owing on the mortgage. That leaves $200,000 in equity, which is 40% of the value of your home. To find how much you can borrow, apply the limits. Eighty percent of $500,000 is $400,000. Subtract the $300,000 mortgage, and up to $100,000 is available to borrow. Check it against the HELOC cap too. Sixty-five percent of $500,000 is $325,000, so the full $100,000 can sit in the revolving line.

• HELOC (the revolving line). Up to 65% of your home's value.
• Mortgage and HELOC combined. Up to 80% of your home's value.
• Home equity loan (a lump sum). Up to 80% of your home's value.

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Is the 65% home equity line of credit limit still in place in Canada?

Yes. Federally regulated lenders, which includes the major banks, cap a HELOC at 65% of your home's value, and 80% once it is combined with a mortgage. The rule has held for years and it is current in 2026. You will see American articles quote 85% or even 90%. Those numbers describe a different country's rules and do not apply to a home in Ontario.

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What actually decides how much you qualify for

The percentages set the ceiling. Your income sets the gate. Even when the equity is clearly there, a lender still has to see that you can carry the payments.

Two things shape the final amount. First is the mortgage stress test. To qualify at a federally regulated lender, you have to show you could handle payments at the greater of 5.25% or your actual interest rate plus two percentage points. Second is your debt load and credit score. A lender weighs how much of your income already goes to debt, and counts the HELOC limit against you even if you never draw on it. That is why two homeowners with the same equity can be approved for very different amounts.

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Bank said no? Where alternative lenders fit

Sometimes the equity is there but the bank still says no. Bruised credit, self-employment, or income that is hard to document on paper can all get in the way. That is not the end of the conversation.

Alternative and private lenders are not bound by the same federal caps, so some will lend a little higher against your home, often up to around 80% or slightly more. They look at the property and the equity first, ahead of the credit score. Rates run higher, so this is usually a bridge with a plan back to a bank rate later. We work with Ontario homeowners in exactly this spot, and we can walk you through a home equity line of credit and what the numbers look like before you commit to anything. No obligation, no pressure.

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Case study

Priya and Daniel owned a home in Toronto worth about $820,000, with $430,000 left on the mortgage. On paper they had plenty of equity. In real life they had about $48,000 spread across two credit cards and a line of credit, and the minimum payments were taking more than $1,400 a month. The interest was the problem, not their effort. We looked at the home, not just the credit report. At 80% of the home's value, their borrowing room was about $226,000 after the mortgage, far more than they needed. They opened a HELOC and drew $48,000 to clear the high-interest balances. At a variable rate near 5%, the interest on that draw came to roughly $200 a month, and they set a steady payment on top to pay it down. Their monthly outlay on that debt fell by more than $1,000, and the pressure they had carried for two years eased in a week.

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What a home equity line of credit costs each month

A HELOC usually charges interest only on what you draw, not on the full limit. That keeps the monthly payment low and flexible. Rates are variable and move with the Bank of Canada, with HELOC rates that start around 4.95%.

Here is a concrete example. On a $100,000 balance at about 5%, the interest runs near $415 a month. Draw less and you pay less. Many homeowners use that flexibility to consolidate several high-interest card payments, often near 20%, into one lower payment they actually control. A home equity line of credit is built for that kind of move, and a home equity loan does the same job as a fixed lump sum when you already know the exact amount you need.

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Frequently asked questions

Is there a maximum home equity line of credit limit in Canada?

Yes. A HELOC is capped at 65% of your home's value, and your mortgage and HELOC together cannot pass 80%. Those limits apply to federally regulated lenders across Ontario.

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How much is a home equity line of credit payment on $100,000?

At a variable rate near 5%, interest on a $100,000 balance is roughly $415 a month, because you pay interest only on the amount you draw. The payment moves as rates move.

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What is the downside of a home equity line of credit?

The interest rate is variable, so payments can rise, and the line is secured by your home. Used with a plan it is a low-cost way to borrow. Used as an open-ended spending tap, it can stretch debt out for years.

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Can you borrow more than 65% of your home's value?

Yes, up to 80% in total, but the portion above 65% has to sit in a mortgage or term loan rather than the revolving line. Some alternative lenders go a little higher, at higher rates.

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How do you work out how much equity you can borrow?

Multiply your home's value by 80%, subtract your mortgage balance, and that is your rough borrowing room. Then check that the HELOC portion stays within 65% of the value.

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Your equity is only useful when you can put it to work. If you want a straight answer on how much you could borrow against your home, we can run your numbers and show you the options in plain terms. See how much equity you could access with a free assessment. No obligation, no pressure. Same-day call back.

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This article is general information, not mortgage advice. Rates, lending criteria and regulations change. Speak with a licensed mortgage professional about your own situation before making a decision.

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