# How does B-20 affect Home Equity Lines of Credit (HELOCs)?

> The FRFI would limit the non-amortizing HELOC component to $325,000.

Category: Investor
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/investor/how-does-b-20-affect-home-equity-lines-of-credit-helocs

## Answer
| Component                   | Value      |
|-----------------------------|------------|
| Property Value              | $500,000   |
| Maximum LTV for HELOC       | 65%        |
| Calculation                 | 500,000 x 0.65 = $325,000 |

The FRFI would limit the non-amortizing HELOC component to $325,000. Any additional mortgage credit beyond this limit must be amortized.

## Institutional highlights
- Your lender wants to make sure you can eventually pay off your Home Equity Line of Credit (HELOC).
- Your lender will keep a close eye on your credit score while you have a HELOC.
- Your lender may lower your HELOC limit if your home value drops or your finances worsen.
- You can only borrow up to 65% of your home's value with a HELOC where you only pay interest.
- If you borrow more than 65% of your home's value, you'll need to make regular payments towards the principal, like a regular mortgage.

## Related guide
- https://ratellow.com/guides/brrrr-mortgage-financing

## Sources
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- IV. Other guidance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#4.0
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1