Home / HELOC
HELOCFlexible credit, when you need it.
A home equity line of credit gives you access to funds secured by your home. You borrow when you need to, pay interest only on what you use, and can pay it down and reuse it.
Is this right for you?
Ongoing renovations
Draw funds as each stage of a project is ready.
A safety net
Access to funds for the unexpected, ready when you need it.
Investment opportunities
Funds available quickly when timing matters.
Business owners
Flexible access to working capital.
Clear steps, no surprises.
Discuss your plans
How much flexibility you need and why.
Compare structures
Standalone HELOC, combined with a mortgage, or a refinance.
Appraisal and legal
Your home is appraised and the line is registered.
Ready to use
Access funds by transfer or cheque, as needed.
Ways to use a HELOC.
A HELOC is a flexible tool. Here are common ways homeowners use one, in plain language.
Smith Manoeuvre
Uses a readvanceable mortgage, a mortgage combined with a HELOC. As you pay down the mortgage, the HELOC limit grows, and you borrow from it to invest in non registered, income producing investments. Over time this can convert non deductible mortgage debt into investment debt whose interest may be tax deductible.
Cash damming
For rental property or business owners. Rental or business income goes toward paying down your mortgage, and you pay the rental or business expenses from the HELOC instead. Because the borrowed money is used to earn income, the HELOC interest may be deductible.
Interest deductibility
Under CRA rules, interest may be deductible when borrowed money is used to earn income from a business or property. What counts is how the money is used, so tracing matters. Keep borrowed funds separate and avoid mixing personal and investment spending.
Everyday flexibility
Many people simply use a HELOC for renovations, as a backup emergency fund, or to invest. You pay interest only on what you use, and you can repay and reuse the limit.
Risks and things to consider
- Variable rate. HELOC rates usually move with prime, so your interest cost can rise.
- Discipline. Interest only payments make it easy to carry a balance longer than planned.
- Investment risk. Investments can lose value, and you still owe what you borrowed.
- Record keeping. Deductibility depends on clear records of how every dollar was used.
General information only, not tax or investment advice. Speak with a qualified accountant or tax professional about your situation.
Use it with a plan
Options, not pressure. I will lay out the trade offs, including when the right answer is to wait.
math first, always
Variable rates move
HELOC rates usually float with prime, so payments can change.
Interest only can linger
Minimum payments may only cover interest. A plan to pay down principal helps.
Setup and ongoing costs vary
Legal, appraisal and any annual fees are explained before you commit.
Common questions
How much can I access?
A HELOC is generally limited to 65% of your home's value, and combined with your mortgage, typically up to 80%.
Is a HELOC better than a refinance?
It depends on how and when you will use the funds. For one large expense a refinance may cost less. For ongoing needs, a HELOC is often more flexible.
Can I get a HELOC if I am self-employed?
Often yes, with the right documentation. Let's look at your situation.
You might also be interested in
Ready when you are.
Start your application online, or book a relaxed conversation first. No pressure either way.
Prefer the phone? Call 613-714-9499. Office visits by appointment.