Home Equity

Your home is worth more than you owe; the difference is your equity, and some of it can be converted back into cash through a refinance or a home equity line of credit. This calculator shows how much equity you have, your loan-to-value, and the two federal ceilings — a HELOC's and a refinance's — that decide how much of it a lender would actually let you touch.

What it answers

Your current equity: market value minus what you owe.
Your loan-to-value (LTV): how much of the home's value the mortgage represents.
The maximum HELOC a lender would likely allow, capped at 65% of value.
The maximum refinance a lender would likely allow, capped at 80% of value.

What it deliberately does not cover

It does not approve you for anything. A HELOC or a refinance is underwritten like a new application — income, debts, credit, and for a refinance, the stress test — and this calculator only prices the loan-to-value ceiling, not your qualification. It does not estimate the cost of unlocking the equity — legal fees, an appraisal, title insurance, or any prepayment penalty for breaking your current mortgage term — because those vary too much by lender and by how much term you have left to estimate honestly here; ask your lender and lawyer for exact figures before you commit. It does not compute a new mortgage payment, because it does not ask for a rate; once you know how much you'd actually borrow, run that amount through the Mortgage Payment calculator. It does not cover reverse mortgages, a separate product with separate rules — see the Reverse Mortgage calculator for that.

Every input, explained

Current market value. What your home would sell for today — recent sold comparables or a professional appraisal. Not the price you paid years ago, not your municipal assessment. The common error is an optimistic number, which inflates the HELOC and refinance ceilings below into figures no lender will actually offer.

Mortgage owing. What you still owe today, from your statement or lender portal — not the original mortgage amount. Other debts (car loans, credit cards) don't belong here; this calculator only looks at what's secured against the home.

How the math works

Equity = current market value − mortgage owing. That is the simple part.

Two further ceilings come from federal lending rules, not from your own qualification. A refinance cannot get mortgage default insurance, so lenders cap it at 80% of value: max refinance = (80% × market value) − mortgage owing. The revolving portion of a HELOC is capped at 65% of value under OSFI Guideline B-20: max HELOC = (65% × market value) − mortgage owing. Both ceilings floor at zero — if your mortgage already exceeds the ceiling, the calculator shows $0 available rather than a negative number.

Worked example

A Calgary homeowner's property is worth $725,000, with a $398,000 mortgage balance remaining.

Equity: $725,000 − $398,000 = $327,000 — what they own outright, before any lender's ceiling applies.
Loan-to-value: $398,000 ÷ $725,000 = 54.9%.
Max HELOC: (65% × $725,000) − $398,000 = $471,250 − $398,000 = $73,250 revolving, on top of the existing mortgage.
Max refinance: (80% × $725,000) − $398,000 = $580,000 − $398,000 = $182,000 — the most a lender would likely let this homeowner add by refinancing to a bigger mortgage.

Both figures are ceilings, not offers. The lender still has to approve the HELOC or refinance application the normal way — income, debts, and credit for either, plus the stress test for a refinance — and unlocking either one costs money (legal fees, an appraisal, possibly a prepayment penalty) that this calculator does not estimate, because those figures depend on your specific lender and contract.

Provincial quirks and edge cases

In Quebec, refinancing means a new hypothec through a notary and a formal discharge of the old one — heavier paperwork than in common-law provinces, though the ceilings this calculator computes are federal and identical everywhere.
In Alberta and Saskatchewan, refinance legal and registration fees are modest, but the prepayment penalty — driven by your rate and remaining term, not your province — is usually the biggest cost of unlocking equity wherever you live.
Rental properties need 20 percent down to buy, cannot be insured, and face the same 80 percent refinance ceiling with full underwriting. Lenders scrutinize rental income and vacancies closely.
If your home's value has fallen enough that your mortgage owing already exceeds 65% or 80% of value, the calculator shows $0 available for that ceiling rather than a negative number — that is information, not an error.

Questions to ask a professional

Ask your mortgage broker: "At my income and debts, do I pass the stress test for a refinance to 80 percent of value — and would a HELOC or a refinance cost me less overall?"
Ask your lender: "What is my exact prepayment penalty today — three months' interest or interest rate differential under my contract?"
Ask your accountant: "I want to borrow against my home to invest — what are the rules on deducting that interest, and how do I keep the paper trail clean?"
Ask your lawyer or notary: "What are the total legal and discharge fees for a refinance in my province, and how long does registration take?"

Frequently asked questions

How much of my equity can I actually use?

On a refinance, up to 80 percent of value minus what you owe — insurance is unavailable on refinances, so lenders will not exceed 80 percent. On a HELOC, the revolving portion is capped at 65 percent of value under OSFI's Guideline B-20. Both are federal lending ceilings, not your personal approval — the lender still underwrites the application the normal way.

Does refinancing trigger the stress test?

Yes. It is treated as a new application, so the lender qualifies you at the greater of your contract rate plus two points or the 5.25 percent floor. The renewal exemption for staying with your current lender does not cover refinances.

HELOC or refinance — which is cheaper?

It depends on amount and duration. A HELOC avoids breaking your mortgage (no prepayment penalty) and charges interest only on what you draw, but the rate is usually variable and higher. A refinance fixes the rate on the full amount but restarts amortization and costs thousands in fees. Run both.

Can I use the money for anything?

Yes — renovations, debt consolidation, investing, education. But borrowing against your home for lifestyle spending converts secured low-rate debt into risk. Interest on money borrowed to invest may be deductible; interest on a vacation is not.

Rules and rates as of September 2026. This is general information for Canadian home buyers and sellers, not financial, legal, or tax advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.