What your home's value unlocks
Bring your own value: an estimate, an assessment, an AVM figure or an appraisal. We show what it unlocks and how much room you have if the appraisal comes in lower.
Inspector's note
The appraisal has to come in at $633,307 or more for the refinance to deliver $120,000, and $627,063 for the HELOC.
Your refinance survives an appraisal up to 25.5% below $850,000. The HELOC survives up to 26.2% below.
Your income supports a mortgage of up to $616,465 at the qualifying rate (GDS limits it). The refinance tested here is $506,646.
Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.
Refinance: $293,355 in hand; HELOC: $298,350. Value needed for $120,000: $633,307 (refinance), $627,063 (HELOC).
What is driving this result
- At $850,000, you owe $380,000 (45% of value). Lenders can lend up to 80% of value in total without insurance ($680,000), and the revolving HELOC part can be at most 65% ($552,500).
- Your HELOC limit is set by the 80% total, not the 65% cap: $680,000 − your $380,000 mortgage = $300,000.
- Breaking your fixed mortgage now costs about $4,645 (3 months' interest), which comes out of a refinance but not a HELOC.
- To get $120,000 in hand, the appraisal must come in at least $633,307 for a refinance or $627,063 for a HELOC. That leaves a 25.5% cushion below your $850,000 on the refinance.
Show the numbers
| Refinance | HELOC | |
|---|---|---|
| -15% | $191K | $196K |
| -10% | $225K | $230K |
| -5% | $259K | $264K |
| 0% | $293K | $298K |
| +5% | $327K | $332K |
| Appraisal ↓ / Mortgage → | $280K | $330K | $380K | $430K | $480K |
|---|---|---|---|---|---|
| $723K | $291K | $241K | $191K | $141K | $91K |
| $765K | $325K | $275K | $225K | $175K | $125K |
| $808K | $359K | $309K | $259K | $209K | $159K |
| $850K | $393K | $343K | $293K | $243K | $193K |
| $893K | $427K | $377K | $327K | $277K | $227K |
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Assumptions & sources
Assumptions
- Refinance: one new mortgage of up to 80% of the appraised value (Bank Act s. 418 limit on uninsured loans), paying out the mortgage, HELOC and other secured debt. Insured (CMHC) refinances aren't allowed except to add housing units (see the secondary-suite calculator).
- HELOC behind the mortgage: limit = the lower of 65% of value (OSFI B-20) and 80% of value minus the mortgage and other secured loans.
- Penalty: FCAC says usually the higher of 3 months' interest and the interest-rate differential (fixed); variable usually 3 months' interest. Your lender's method decides.
- Costs (estimates): appraisal $450, legal $1,200, discharge $350 for a refinance with a new lender. Some lenders cover them.
- Income test: payments at the qualifying rate (max of rate + 2 or 5.25%) within GDS 39% and TDS 44%; HELOCs tested on the amount drawn over 25 years (lender practice varies).
- We never estimate the value of a property. The value is yours to enter.
Sources
- Justice Laws — Bank Act, s. 418: 80% limit on uninsured residential loans (including refinances) (effective September 1, 2026). Checked .
- OSFI — Guideline B-20: Residential mortgage underwriting (HELOC 65%, appraisals, AVMs) (effective October 31, 2017). Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- Financial Consumer Agency of Canada — Borrowing money using home equity (effective October 15, 2025). Checked .
- Financial Consumer Agency of Canada — Reduce mortgage prepayment penalties (effective October 15, 2025). Checked .
- Justice Laws — Eligible Mortgage Loan Regulations (SOR/2012-281), s. 6.1: insured loans to add housing units (effective January 15, 2025). Checked .
- CMHC — Calculating GDS / TDS. Checked .
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