In Canada, you can access up to 65% of the value of your home through a HELOC. However, there is one caveat. Your HELOC plus the outstanding principal on your mortgage loan balance cannot equal more than 80% of your home’s value.
To calculate how much equity you have to work with, start by taking the value of your home and multiplying it by 80%. Then, subtract the remaining principal on your home.
For example, if the value of your home is $500,000, and you’ve paid off $110,000, you can take out up to a $290,000 line of credit ($500,000 x 0.80 - $110,000).
When you pay back the money you withdraw from your HELOC, you’ll have to pay it back plus interest.