- FCAC: a HELOC can be up to 65% of your home’s value; borrowing against home equity can usually go up to 80%.
- In a readvanceable plan, the mortgage and line together stay within the overall limit.
- HELOC rates are variable and you may only have to pay interest, so balances can linger.
- Each bank’s plan has its own name, structure and fees (table below).
How much can you borrow with a HELOC?
FCAC’s home equity guide: with a HELOC you may borrow up to 65% of your home’s value, and when borrowing against home equity you may usually borrow up to 80% of your home’s value. So a plan on a $800,000 home could allow up to $640,000 in total, of which no more than $520,000 can be revolving HELOC credit; the rest must be amortizing mortgage.
| Limit | Calculation | Amount |
|---|---|---|
| Total borrowing (80%) | $800,000 × 80% | $640,000 |
| Revolving HELOC cap (65%) | $800,000 × 65% | $520,000 |
| Room after the mortgage | $640,000 − $400,000 | $240,000 |
What readvanceable plan does each big bank offer?
From each bank’s own pages:
| Bank | HELOC / readvanceable |
|---|---|
| RBC Royal Bank | RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. |
| TD Canada Trust | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. |
| Scotiabank | STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. |
| BMO Bank of Montreal | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. |
| CIBC | CIBC Home Power Plan: up to 80% of appraised value; line priced off CIBC Prime. |
| National Bank | All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account. |
What should you check before you sign up for a HELOC?
- A readvanceable plan can register a collateral charge on your home for more than you borrow on day one. Ask what it costs to switch the mortgage to another lender at renewal.
- HELOCs are variable and often interest-only. Set your own repayment plan.
- Ask for the rate on the line (prime + what?), any annual or setup fees, and whether the line can be frozen or reduced.
How much room opens up as you pay down the mortgage?
In most readvanceable plans, principal you repay can become room to borrow again (see the exceptions below), within the 80% overall limit and the 65% cap on the revolving line. On the $800,000 home above, with $400,000 owing at RBC’s 5.14% 5-year special over 25 years and the home’s value held flat, the room grows like this. The 65% cap on the line ($520,000) doesn’t bind here; it would once the mortgage fell below $120,000.
| Mortgage balance | Room under the 80% limit | |
|---|---|---|
| Today | $400,000 | $240,000 |
| After 1 year | $391,854 | $248,146 |
| After 3 years | $374,269 | $265,731 |
| After 5 years | $354,804 | $285,196 |
| After 10 years | $296,553 | $343,447 |
What does an interest-only HELOC cost compared with paying it down?
HELOC rates are variable. TD, BMO and CIBC describe their lines as based on prime, and BMO adds an adjustment factor, so your line may cost more than prime. At prime alone (4.70%), here is $50,000 borrowed three ways. Interest-only keeps the payment low, but after five years you still owe all of it. Each 0.25 point above prime adds about $125 a year in interest on $50,000.
| Monthly payment | Interest over 5 years | Still owed after 5 years | |
|---|---|---|---|
| Interest only | $195.83 | $11,750 | $50,000 |
| Paid off over 10 years | $523.03 | $9,300 | $27,918 |
| Paid off over 5 years | $936.70 | $6,202 | $0 |
How do the six banks’ plans differ in the details?
- RBC Homeline Plan: if the plan’s total limit is above 65% of the value at application, part of each mortgage payment’s principal raises the credit-line limit and the rest reduces the overall plan limit.
- TD Home Equity FlexLine: a Revolving Portion with an interest-only minimum payment, plus optional Term Portions with fixed or variable rates; closed Term Portions allow a 15% lump sum a year. Access up to 80% needs a Term Portion.
- Scotia Total Equity Plan: the 80% global limit decreases monthly over 25 years to 65% (unless set at 65% or less), so room shrinks over time.
- BMO Homeowner ReadiLine: anything above 65% must be in an amortizing instalment; the plan must be registered in first priority on title.
- CIBC Home Power Plan: minimum borrowing of $10,000, available on non-owner-occupied rentals of up to four units, and automatic rebalancing of the line can take up to 60 days.
- National Bank All-In-One: combines the mortgage, line of credit and transaction account for $7 a month per account. In National Bank’s example (20% down, a line covering 65% of the price), the loan portion finances the other 15%, and that repaid principal can’t be re-accessed.
Who is a readvanceable plan a good fit for?
It suits borrowers who want planned access to equity (a renovation paid back on a schedule, for example) without re-applying each time, and who will set their own repayment plan. It is riskier if you tend to carry balances: an interest-only line can stay at the same balance for years, and the rate moves with prime. If you expect to shop your mortgage at renewal, ask what it costs to move the whole plan before you sign; the renewal guide covers switching.
Worked example: an $800,000 home with $400,000 owing
80% of $800,000 is $640,000, so up to $240,000 more could be borrowed in total; the revolving line can’t exceed $520,000 (65%). At Scotiabank, STEP’s 80% global limit steps down to 65% over 25 years, so that room shrinks over time.
Computed by this site’s engine from each bank’s published rates (November 2, 2026) and the rules cited below. An example, not a quote.
What this means for you
- A readvanceable plan registers a collateral charge; ask what it costs to switch it at renewal.
- Interest-only lines can linger; set a repayment schedule.
- Score a HELOC quote on IsThisAGoodRate.ca.
Rules change. Every figure on this page links to the official source and shows when we checked it. If something looks out of date, tell us and we will re-check.
Frequently asked questions
Is a HELOC the same as a readvanceable mortgage?
A HELOC is the line of credit. A readvanceable mortgage combines a regular amortizing mortgage with a HELOC so that, as you repay principal, the line’s limit can increase within the overall cap.
Can I switch a readvanceable mortgage to another bank?
Yes, but it is usually more work than a standard mortgage, because the charge and the linked accounts have to move. Get a quote for legal and discharge costs before you renew.
Is a HELOC rate fixed or variable?
Variable. TD’s Revolving Portion is based on TD Prime, BMO’s line is its Prime Rate plus an adjustment factor, and CIBC’s line changes whenever CIBC Prime changes. TD’s Term Portions can be fixed or variable, like a mortgage.
Do I have to pay down the principal on a HELOC?
Not always. TD describes an interest-only minimum payment on its Revolving Portion, so the balance can stay the same for years unless you set your own repayment plan. The example above shows what that costs.
Sources
- Borrowing money using home equity (HELOC, home equity loan, reverse mortgage) — FCAC, checked Oct 31, 2026
- RBC Homeline Plan — RBC Royal Bank, checked Oct 31, 2026
- TD Home Equity FlexLine — TD Canada Trust, checked Oct 31, 2026
- Scotia Total Equity Plan (STEP) — Scotiabank, checked Oct 31, 2026
- Homeowner ReadiLine — BMO, checked Oct 31, 2026
- CIBC Home Power Plan — CIBC, checked Oct 31, 2026
- All-In-One — National Bank, checked Oct 31, 2026
- Mortgage rates — RBC Royal Bank, checked Nov 2, 2026
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.
