Trusted mortgage services
A home equity line of credit
Borrow against your home when you need to and pay interest only on what you use. We help you set the right limit and compare it with refinancing.
- 5-yr fixed
- 4.69%
- 5-yr variable
- 3.70%
Updated Oct 8 · on approved credit · Compare to bank rates
How a HELOC works
A home equity line of credit is a revolving line secured by your home. You are approved for a limit, draw what you need, repay it and draw again, and you only pay interest on the balance you are carrying. Most HELOCs have a variable rate based on the lender's prime rate, which moves when the Bank of Canada changes its policy rate.
Federally regulated lenders follow OSFI's Guideline B-20, which caps the revolving part of a HELOC at 65% of your home's value. You can borrow more, up to 80% in total, but anything above 65% has to be a mortgage you pay down on a schedule. Many lenders package the two as a combined or readvanceable plan, where the room on the line grows as you pay down the mortgage.
Know the trade-offs
Flexible borrowing
Useful for costs that come in stages or at unpredictable times, such as a renovation paid as the work progresses, tuition, or a backup fund you hope not to touch.
Interest-only minimums
Your lender may only require the monthly interest. That keeps payments low, but the balance never shrinks unless you pay more than the minimum.
Rate and limit risk
Because the rate follows prime, your payment rises when rates rise. Lenders can also review your limit if your home's value falls or your finances change.
How it works
Setting up a HELOC
Check your equity
We estimate your home's value and what you owe to see how large a line fits within the 65% and 80% limits.
Qualify
Lenders check your income, debts and credit, and that you could afford the payments at a higher qualifying rate, not just today's rate.
Choose the structure
A standalone line or one combined with your mortgage. A combined plan has to be with your mortgage lender, so setting it up at renewal can avoid breaking your mortgage early.
Appraisal and registration
The lender orders an appraisal and registers a charge on your title through a lawyer or notary. Expect appraisal, legal and title fees unless the lender covers them.
Frequently asked questions
You have questions — we have answers!
Home Equity Line of Credit (HELOC)
Do I need to pass the stress test for a HELOC?
Yes. Lenders need to see that you could still afford the payments if rates rose. For uninsured mortgages and lines of credit at federally regulated lenders, the minimum qualifying rate is the greater of your contract rate plus 2% or 5.25%. Lenders also look at your other debts, and many work out the line's payment as if the full limit were drawn. If you don't qualify for the limit you want, a smaller line may still fit.
Is a HELOC rate fixed or variable?
Almost always variable, usually the lender's prime rate plus a set margin. When the Bank of Canada changes its policy rate, prime usually follows, and so does the interest on your balance. If you want more certainty, many combined plans let you move part of what you owe into a fixed-rate mortgage portion with regular payments, while the rest stays as a flexible line.
Do I have to pay down the principal?
Not always. Many HELOCs only require the monthly interest, which keeps the balance where it is for as long as you let it. That keeps payments low, but you can end up carrying the debt for years. We suggest setting a regular principal payment so the line is paid off on a timeline you choose, or moving a large balance into an amortizing mortgage at renewal.
When is a refinance better than a HELOC?
When you need one lump sum and want it paid off on a schedule. A refinance can reach 80% of your home's value on its own, and every payment includes principal. A HELOC suits money you will draw over time. If you are mid-term, refinancing can mean a prepayment penalty, while adding a separate line may not.
Can the lender change my HELOC?
Your rate moves with prime, and lenders can review your limit if your home's value drops or your finances change. HELOC agreements usually let the lender demand repayment or change the limit, so read those terms before you sign.
Today's rates
Our rates vs the banks'
We shop 50+ lenders, so the rate you're offered isn't limited to one bank's rate sheet. Updated Oct 8.
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Everyone's rate is different. What's yours?
Our job is to find you a competitive rate and terms that fit. Your rate qualification depends on certain factors, such as credit score and home equity, as per Canadian regulations. Get your details fast — there's no cost and no obligation.
- Current variable mortgage rate
- 3.70%
- Current prime rate
- 4.45%
| Term | Bank posted | Our rates | Action |
|---|---|---|---|
| 6 Months | 7.89% | 4.79% | Get this rate: 6 Months |
| 1 year fixed | 5.49% | 4.64% | Get this rate: 1 year fixed |
| 2 year fixed | 5.44% | 4.44% | Get this rate: 2 year fixed |
| 3 year fixed | 6.05% | 4.54% | Get this rate: 3 year fixed |
| 4 year fixed | 6.01% | 4.39% | Get this rate: 4 year fixed |
| 5 year fixed | 6.19% | 4.69% | Get this rate: 5 year fixed |
| 7 year fixed | 6.41% | 4.79% | Get this rate: 7 year fixed |
| 10 year fixed | 6.81% | 4.79% | Get this rate: 10 year fixed |
| 5 year variable | No bank rate | 3.70% | Get this rate: 5 year variable |
Bank posted rates are the big banks' posted rates published by the Bank of Canada (1, 3 and 5 years) and by Dominion Lending Centres (other terms). Some conditions may apply. Rates may vary from province to province. Rates subject to change without notice. Rates change often and depend on your down payment, credit and property; on approved credit (O.A.C.). E.&O.E.
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- Our location525 W 8th Ave #800, Vancouver, BC V5Z 1C6
- Phone number778-838-8005
- Email addressinfo@coastalblue.ca