- 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).
The limits
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 |
Each bank’s plan
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. |
Before you sign up
- 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.
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 If something looks out of date, tell us and we will re-check.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.
Sources
- Borrowing money using home equity (HELOC, home equity loan, reverse mortgage) — FCAC, checked Oct 31, 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.