Home equity line of credit (HELOC) guide
A home equity line of credit (HELOC) is revolving credit secured by your home: you can borrow, repay and borrow again up to your limit. You can borrow up to 65% of your home's value on a HELOC.
Prime rate
4.70%
Nov 11, 2026 · Bank of Canada
Bank of Canada policy rate
2.50%
Nov 12, 2026 · Bank of Canada
Two kinds of HELOC
- Combined with a mortgage, sometimes called a readvanceable mortgage: it's with the same lender as your mortgage, and the credit available grows as you pay down the mortgage principal.
- Standalone: a line of credit secured by your home, separate from any mortgage.
How the rate works
Most HELOCs have a variable rate based on the lender's prime rate, such as prime plus 1%. Prime is 4.70% (Nov 11, 2026), and it usually moves when the Bank of Canada changes its policy rate.
Payments
You pay interest only on what you borrow. Your lender may require interest-only payments or interest plus part of the principal. If you only pay the interest, you won't pay off the balance.
Risks to weigh
- Payments rise if interest rates rise.
- The line is secured by your home: if you don't repay, you could lose it.
- Borrowing reduces your equity, which can limit your options when you sell. If you sell, you must repay the HELOC.
- Easy access to funds can lead to more debt than you can repay.
Frequently asked questions
How much can I borrow with a HELOC?
Up to 65% of your home's value, less what you owe, depending on your lender and your finances.
Sources
Rules are summarized in our own words from official publications. Check the source and talk to your lender or a licensed professional before making a decision.
Informational only, not financial advice. Data as of the release snapshot generated 2026-11-14.