General information only — not legal, tax, financial, or real-estate advice. Verify with a licensed BC professional before acting.
A Home Equity Line of Credit (HELOC) is a revolving credit line secured against the equity in an owner-occupied home. In Canada, federally regulated lenders may lend up to 65% of a home's value on a HELOC portion (with the combined mortgage plus HELOC capped at 80% under Office of the Superintendent of Financial Institutions rules). HELOCs typically carry a variable interest rate tied to the lender's prime rate and require interest-only payments during the draw period. Advantages may include flexibility and lower short-term payments; risks include rate variability and the temptation to use home equity for non-appreciating purchases. Suitability depends on your specific finances — discuss with a mortgage broker or licensed financial advisor.
Most lenders open a HELOC only after you own the property. Some lenders offer combined mortgage-plus-HELOC products (e.g. re-advanceable mortgages) that can be set up at closing.
A HELOC is a revolving credit line with a variable rate. A second mortgage is a fixed-term loan with defined payments. Both are secured against home equity but function differently — discuss which suits your situation with a mortgage broker.
Verify the specific statutory language, thresholds, deadlines and current guidance directly with the governing authority: