Mortgage: HELOC
Borrow against your home, only when you need it
A home equity line of credit lets you draw on the equity in your home as you need it, and pay interest only on what you have actually used. Sukhpreet can tell you how much would be available to you and what it would cost.
How a HELOC works
A HELOC is a revolving credit line secured against your home. Once it is in place you can draw from it, repay it and draw again, without reapplying each time.
The flexibility is the point. You pay interest only on the balance you have drawn, so an unused line costs nothing. That makes it well suited to expenses that arrive in stages, such as a renovation, or to holding a reserve you hope not to need.
How much you can usually access
Two ceilings apply, and the lower of them governs. Both are confirmed for your own property and lender before anything is committed:
- The HELOC portion alone is typically limited to 65% of the home's value
- The HELOC and your mortgage together are typically limited to 80% of the home's value
- Rates are usually variable and move with the lender's prime rate
Because the rate is usually variable, the cost of carrying a balance changes over time. That matters most if you intend to carry one for years rather than months.
A HELOC or a refinance?
Both put your equity to work, and they suit different needs. We compare the two on total cost before recommending either.
A HELOC suits
Costs that arrive in stages, an emergency reserve, or borrowing you expect to repay quickly. You keep your existing mortgage and its rate untouched.
A refinance suits
A single large sum, or a case where restructuring the whole mortgage lowers the overall cost. It replaces your existing mortgage, so any penalty counts against the benefit.
What to be careful about
A HELOC is secured against your home, so it is not a casual form of borrowing. Treating it as spare money is the most common way people get into trouble with one.
Interest-only payments keep the monthly cost low but do not reduce what you owe. If you draw on a line, it is worth deciding at the outset how and when you will pay it back.
Common questions
How is a HELOC different from a refinance?
A HELOC is added alongside your existing mortgage, which keeps its current rate and terms. A refinance replaces the mortgage entirely. A HELOC suits borrowing in stages or holding a reserve; a refinance often suits a single large sum. We compare both on total cost.
How much can I borrow?
Two limits apply and the lower one governs: the HELOC portion alone is typically capped at 65% of the home's value, and the HELOC plus your mortgage together at 80%. Sukhpreet can confirm the figure for your property.
Do I pay anything if I don't use it?
You pay interest only on the balance you have actually drawn, so an unused line generally costs nothing to keep. Some lenders charge a setup or annual fee, which we tell you about upfront.
Is the rate fixed?
HELOC rates are usually variable and move with the lender's prime rate. That matters most if you plan to carry a balance for years rather than months.
What are the risks?
It is secured against your home, so it is not casual borrowing. Interest-only payments also keep the monthly cost low without reducing what you owe, so it is worth deciding how you will repay a draw before you make it.
Why work with Sukhpreet?
Personalized guidance
Advice tailored to your goals, timeline, and comfort level.
Transparent options
Rates, terms, and features explained in plain language.
End-to-end support
Coordination with your realtor and lawyer from start to close.
Meet Sukhpreet
Mortgage Agent, Level 1, Mortgage Alliance, Licence #10530
Sukhpreet works closely with clients to help them navigate the mortgage process with clarity and confidence.
- 20+ lender access
- Fast pre-approvals*
- Client-first guidance
*Timelines depend on document completeness and lender response.
Read Sukhpreet's full profile
Talk to Sukhpreet about a HELOC
Share a few details and we'll call you to talk it through. The first conversation is free.
- Call
- 613-306-9900
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- Monday to Friday9:00 AM to 6:00 PMSaturday10:00 AM to 2:00 PMSundayClosed
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- 101-14 Chamberlain Ave
Ottawa, OntarioGet directions (opens Google Maps in a new tab)