Monthly interest payment:
Annual interest cost:
With extra principal payment, months to pay off:
Total interest paid (with extra payment):
Most Canadian HELOCs require interest-only minimum payments. This means if you only pay the minimum, your balance never goes down. To actually reduce your HELOC debt, you must pay more than the monthly interest.
| Balance | At 5.45%/yr | At 6.00%/yr | At 6.50%/yr |
|---|---|---|---|
| $50,000 | $227/mo | $250/mo | $271/mo |
| $100,000 | $454/mo | $500/mo | $542/mo |
| $150,000 | $681/mo | $750/mo | $813/mo |
| $200,000 | $908/mo | $1,000/mo | $1,083/mo |
| $300,000 | $1,363/mo | $1,500/mo | $1,625/mo |
If you borrow $150,000 from your HELOC at 5.45% and only make the interest-only payment of $681/month, your balance never decreases. After 10 years, you've paid $81,720 in interest and still owe $150,000. This is why treating a HELOC like a revolving credit card — only paying the minimum — is financially dangerous over the long term.
Treat your HELOC like a structured loan. Set a target payoff date and calculate the required monthly payment:
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Get KOHO Free — Use Code 45ET55JSYAHELOC interest is calculated daily on the outstanding balance: Balance × (Annual Rate ÷ 365) × Days in the month. It's charged to your account monthly.
Your minimum payment increases automatically because the rate is variable. A 0.25% rate increase adds approximately $2.08/month per $100 of HELOC balance.
Yes. HELOCs have no prepayment penalties. You can pay any amount at any time. Lump-sum payments (bonuses, tax refunds) are an excellent way to reduce your HELOC balance quickly.