Work out how much home equity you can actually access in BC: the 65% revolving cap, the 80% combined cap, and the interest-only payment on what you draw. Then see whether a HELOC, refinance, or readvanceable mortgage fits the plan.
The BC HELOC rules this calculator applies
Two caps decide how much you can borrow. The revolving portion of a HELOC is limited to 65% of your home’s appraised value, and the HELOC plus your mortgage together cannot exceed 80% of that value. Lenders qualify you on the full approved limit, not the balance you draw, and they qualify it at the stress-test rate, 6.24% today. Minimum payments are usually interest-only on what you have drawn, and most HELOCs are readvanceable, so the room grows as you pay the mortgage down.
A Kelowna example: an $800,000 home with a $400,000 mortgage. The combined cap is 80% of $800,000, or $640,000, so the maximum HELOC is $640,000 minus $400,000 = $240,000. The standalone 65% cap ($520,000) is not the binding limit here. If you plan to draw most of it at once for a renovation or a debt consolidation, compare it against a full refinance on the refinance-to-consolidate guide; the refinance often carries the lower rate on the money, and the HELOC wins on flexibility.
Frequently asked questions
How much HELOC can I get on my home?
The revolving portion caps at 65% of your home’s value, and the HELOC plus your mortgage together can’t pass 80%. A $1,000,000 home with $500,000 owing leaves up to $300,000 of room.
What payment does a HELOC require?
Interest only, on what you’ve drawn. Draw nothing and pay nothing. That flexibility is the appeal, and for some people the trap.
Should I use a HELOC or refinance to pull out cash?
A refinance hands you the full amount at a lower fixed rate. A HELOC costs more per dollar but only bills what you use, and it revolves. One big known expense favours the refinance. Rolling or uncertain costs favour the line.