Home equity line
of credit (HELOC) —
tap your equity, whenever you need it.

A stand-alone HELOC is a separate product registered as a secondary charge against your home. A readvanceable mortgage combines your mortgage and a HELOC under one collateral charge — as you pay down mortgage principal, the HELOC limit automatically grows by the same amount. Readvanceable is more powerful for investors and Smith Manoeuvre users; stand-alone is simpler and easier to switch lenders. We model both for every file.

Yes — and lenders for the new property treat the HELOC draw as 'borrowed funds,' which affects your debt service ratios. We coordinate with the new-property lender to keep both files clean and ensure the borrowed-funds payment is correctly factored into TDS. Common strategy for investors building a 2–3 property portfolio off a primary residence.

Variable: prime plus a margin, typically Prime + 0.50% to Prime + 1.00% depending on the lender, your file and the product. Big-bank prime is 4.45% (Bank of Canada policy rate 2.25%, most recently confirmed September 2, 2026), so your rate moves whenever prime does. We negotiate the margin on every file: 0.25% less on a $200K balance saves $500 a year.

Only when the borrowed money is used to earn income from a business or property, such as dividend-paying investments, a rental or your business. The CRA looks at how the funds are used — not at the home securing the line. That rule is the basis of the Smith Manoeuvre. Track every draw's use carefully and confirm your plan with a CPA.

It shows on your bureau as a revolving line of credit. Reporting practices vary by lender — some report only the balance plus limit, some report monthly payment history. Generally light impact unless you carry high utilization (above 30% of your limit) or miss payments. Setting up an unused HELOC actually improves your overall available credit and lowers utilization ratios on other revolving accounts.

Yes — same A/B/private lender shopping principles apply. Self-employed files typically need 2 years of T1s and NOAs plus a clean stated-income story or full-document file. Some specialty A-lenders accept dividend income, and B-lenders are more flexible on income documents in exchange for a higher margin over prime.

Some lenders set a minimum initial draw (often around $5,000); later draws usually have no minimum — you can draw $50 if needed. Access methods: instant transfer to chequing, online banking, branded HELOC chequebook, sometimes a linked credit card. Some lenders allow Interac e-Transfers directly from the HELOC.

Yes. HELOC agreements typically let the lender reduce or freeze your limit, or demand repayment, if your home's value falls materially, your credit deteriorates, or in some cases at the lender's discretion. Read the demand and limit-change terms in your agreement. We disclose this risk upfront and don't recommend a HELOC as your only emergency fund.

A HELOC wins if you need flexibility, will draw irregularly, or want to pay down and re-borrow. A refinance wins for a fixed lump-sum need (a renovation with a known cost, or consolidating $50K+ of debt), because HELOCs are priced at prime plus a margin and usually cost more than a fixed mortgage rate on a balance you'll carry for years. We model both for every file.

Yes, with some lenders, usually at a lower maximum loan-to-value and a higher margin than on your own home. Interest is not deductible just because the line is secured by a rental: deductibility depends on how you use the borrowed money. Funds used to earn rental or investment income can qualify; funds used for personal spending don't.

Usually yes. A HELOC is variable and uninsured, so it carries more risk for the lender — hence the Prime + margin pricing. Fixed mortgage rates, especially for insured purchases, can be 1–2% below HELOC rates when bond yields are favourable. A 5-year fixed mortgage at 3.65%% beats a HELOC at Prime + 0.50% (4.95%%) only if you hold a fixed balance for years. The HELOC wins on flexibility — draw, repay, redraw at no cost. For a known lump-sum need you'll carry long-term, a refinance or second mortgage is usually cheaper.