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Calculate your home equity, loan-to-value ratio, available HELOC limit, and see how your equity grows over time.
| Year | Home Value | Mortgage Balance | Home Equity | LTV Ratio | Max HELOC |
|---|
Max HELOC = (Home Value × 80%) − Mortgage Balance
HELOC rates are typically Prime Rate + 0.5–1.0%. In 2026, expect ~6.0–7.5% variable.
You need at least 20% equity (LTV ≤ 80%) to access a HELOC. Below that, you don't qualify.
Kitchen, basement, or addition. HELOC rates often lower than personal loans. Interest may be tax-deductible if used for income property.
Fund post-secondary education for yourself or children at lower rates than student loans. Common use for equity access in Canada.
Down payment on a rental property. HELOC interest is tax-deductible when used for investments that earn income.
Pay off high-interest credit card debt (20%+) with a HELOC at 6–7%. Saves thousands in interest — but secures the debt against your home.
Vehicle purchase, medical expenses, or other major expenses. Lower rate than car loan or line of credit.
Some homeowners set up a HELOC as a backup emergency fund. Only pay interest if you use it — often $0/month if unused.
| City/Region | Average Price | 20% Down Payment | Mortgage (80%) | 5-Year Equity (3%/yr) |
|---|---|---|---|---|
| Greater Vancouver | $1,270,000 | $254,000 | $1,016,000 | ~$400,000 |
| Greater Toronto | $1,060,000 | $212,000 | $848,000 | ~$335,000 |
| Victoria | $900,000 | $180,000 | $720,000 | ~$285,000 |
| Ottawa | $660,000 | $132,000 | $528,000 | ~$210,000 |
| Calgary | $610,000 | $122,000 | $488,000 | ~$193,000 |
| Edmonton | $430,000 | $86,000 | $344,000 | ~$136,000 |
| Winnipeg | $385,000 | $77,000 | $308,000 | ~$122,000 |
| Halifax | $480,000 | $96,000 | $384,000 | ~$152,000 |
| Montreal | $540,000 | $108,000 | $432,000 | ~$171,000 |
| Regina | $310,000 | $62,000 | $248,000 | ~$98,000 |
*Average prices approximate, Q1 2026. Equity projection assumes 3% annual appreciation and minimum payments only.
While you're building home equity, KOHO earns 3.0% on your daily cash balance and saves you money on fees. Start earning on every dollar you have today.
Get KOHO Free + $100 Bonus →Home equity = Current Home Value − Total Debt (mortgage + HELOC + second mortgage). If your home is worth $650,000 and your total debt is $420,000, you have $230,000 in equity (35.4%). Equity grows through appreciation and mortgage principal pay-down.
Canadian lenders allow a maximum HELOC of 80% of home value minus your mortgage balance. Example: $650,000 × 80% = $520,000 − $420,000 mortgage = $100,000 maximum HELOC. You must have at least 20% equity (LTV ≤ 80%) to qualify for a HELOC.
Below 80% LTV means you qualify for a HELOC and avoid CMHC mortgage insurance. Below 65% LTV is considered strong equity — lenders offer better rates. Above 80% LTV means you're still building equity and may need CMHC insurance for refinancing.
HELOC interest is tax deductible only if you use the funds to earn income — such as investing in stocks, bonds, or a rental property. If you use a HELOC for personal purposes (vacation, home renovation on your principal residence, consumer debt), the interest is NOT deductible.
Equity builds through two mechanisms: (1) Mortgage principal pay-down — each payment reduces your balance. In the early years of a mortgage, most of your payment is interest. (2) Appreciation — Canadian homes have appreciated 3–8% annually over the past decade, depending on the market. A $500,000 home appreciating at 4% gains $20,000 in equity per year from appreciation alone.