Short answer
Most lenders in Ontario let you borrow up to 80% of your home’s appraised value, minus what you still owe. On a home worth $700,000 with a $400,000 mortgage, that is roughly $160,000 accessible. A standalone home equity line of credit is capped lower, at 65% of value.
The calculation
Take your home’s current market value, multiply by 0.80, then subtract your existing mortgage balance and anything else registered against the property. What is left is your accessible equity.
A home worth $700,000 gives you a ceiling of $560,000. If your mortgage is $400,000, you can access about $160,000. Your total equity is $300,000, but the last $140,000 stays in the walls until you sell.
Why 80 percent
It is the regulatory limit for a refinance in Canada. Above 80% you would need mortgage default insurance, and insurers do not cover refinances. So 80% is a hard ceiling rather than a lender preference.
The 65 percent HELOC rule
A standalone home equity line of credit is capped at 65% of value. You can combine a HELOC with a mortgage to reach 80% in total, but the revolving portion cannot exceed 65%.
What else affects the number
- The appraisal. A lender uses appraised value, not what you believe it is worth or what your neighbour sold for.
- Income and credit. Having equity is not the same as qualifying. You still need to pass the stress test on the full new balance.
- Property type. Rural properties, acreage, and anything with a well or septic can be assessed more conservatively.
- Anything else registered. A second mortgage, a HELOC, or a lien all come off the same ceiling.
What people use it for
Consolidating high-interest debt, a renovation, a down payment on a cottage or rental, or funding a move. Those are the five I see most in Barrie and Simcoe County.
If you want the real number for your own property, would a short conversation help?
General education, not financial advice. Figures are illustrative and subject to lender approval (O.A.C.). Lora Fenn, Mortgage Agent Level 1, Lic. #M25003153. Dominion Lending Centres YBM Group, FSRA #11129. 705-881-2780 · lfenn@dominionlending.ca