Definition
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by a mortgage on your property. You can borrow, repay, and re-borrow up to your authorized limit, like a credit card, but at a much lower rate.
Federal rules (OSFI B-20 guidelines): the authorized limit on a standalone HELOC cannot exceed 65% of property value. Combined with a traditional mortgage (a "combined" program like Manulife One or Desjardins HELOC bundle), the combination cannot exceed 80% of value (combined LTV).
Rate: variable based on prime + spread, typically prime + 0.50% to prime + 1.00% (so around 7-8% in May 2026). Minimum payments often cover interest only, which can lead to permanent debt if not framed by repayment discipline. Use for major projects (renos, project launches, emergencies) rather than everyday consumption.