A revolving credit facility secured against the equity in your home, allowing you to borrow, repay, and borrow again up to a set limit. HELOCs typically offer interest-only payments on the borrowed amount and charge variable interest rates. In Canada, you can borrow up to 65% of your home's appraised value through a HELOC, though the combined HELOC and mortgage cannot exceed 80%.
Why It Matters
A HELOC gives homeowners flexible access to funds for renovations, investments, or emergencies without having to refinance their entire mortgage. However, because your home is collateral, failure to repay can put your property at risk. Use a HELOC strategically -- not as a piggy bank for everyday spending.
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