HELOC Calculator — BC Home Equity Line of Credit
Estimate your available BC home equity line of credit, monthly interest-only carrying cost, and compare against refinance and 2nd mortgage alternatives. Rates are general market ranges, OAC.
Your Numbers
Your HELOC
HELOC interest is variable (tied to prime rate). A 1% rise in prime adds the same 1% to your HELOC rate. Budget for rate movement.
How HELOC compares to other BC home equity options
Same $100,000 drawn against a $1.2M Lower Mainland home with $450K existing mortgage:
| Option | Rate | Fees | Monthly | 12-month all-in |
|---|---|---|---|---|
| HELOC at a bank | ~6.95% | $500 legal | $579 | ~$7,450 |
| Refinance to new $550K 1st at A-lender | ~5.25% | $1,500 + IRD penalty | $2,406 (on $550K) | ~$29,500 + penalty |
| 2nd mortgage at B-lender | ~8.0% | $1,000 lender + $1,500 legal | $667 | ~$10,500 |
| Private 2nd mortgage | ~11.5% | $2,000 lender + $1,500 legal | $958 | ~$15,000 |
HELOC is usually the cheapest option IF you qualify and don't need fixed terms. Private 2nd costs more but funds when banks won't.
When HELOC isn't right for you
- You don't qualify at a bank. HELOCs require 680+ beacon and provable income. Self-employed, bad credit, or recently declined borrowers usually need a 2nd mortgage (B-lender or private) instead.
- You want a fixed payment. HELOC payments float with prime. If you need certainty, a fixed 2nd mortgage at the same rate range may be worth the slight premium.
- You're not disciplined with revolving credit. HELOCs work like credit cards — easy to keep drawing on. If you'd rather have a defined loan that gets paid off, a 2nd mortgage forces the discipline.
- You need the cash for a depreciating asset (car, boat, vacation). The math rarely works over a 25-year amortization.
Want to know if you qualify for a HELOC?
2-minute qualifier matches your file to the best BC HELOC option — or to a 2nd mortgage if HELOC isn't available. No credit pull, no obligation.
Check My OptionsFAQ
Federal regs cap standalone HELOC at 65% of home value. HELOC behind a 1st mortgage can go up to 80% combined LTV. So on a $1.2M home with a $450K existing 1st, you could get up to $510K of HELOC (80% combined = $960K total, minus existing $450K).
Banks generally require 680+ beacon plus provable income that passes stress test. B-lenders may offer HELOC-style products at 550+ beacon but with higher rates and fees.
Only if the funds are used for investment purposes (buying income-generating property, dividend-paying stocks, etc.). HELOC interest used for personal expenses, renovations to your primary residence, or debt consolidation is not deductible. Consult an accountant for your specific situation.