# What are the rules around Home Equity Lines of Credit (HELOCs) for you?

> FRFIs must limit the non-amortizing HELOC portion of a mortgage to a maximum Loan-to-Value (LTV) ratio of 65% or less .

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/what-are-the-rules-around-home-equity-lines-of-credit-helocs-for-you

## Answer
FRFIs must limit the non-amortizing HELOC portion of a mortgage to a maximum Loan-to-Value (LTV) ratio of 65% or less . While additional mortgage credit beyond this 65% LTV is allowed, it must be amortized.

## Institutional highlights
- Your Home Equity Line of Credit (HELOC) usually can't be more than 65% of your home's value.
- You can borrow more than 65% of your home's value, but that extra portion must be paid off with regular payments like a mortgage.
- Lenders generally want the average amount borrowed on HELOCs to be less than their maximum advertised limit.
- Lenders will work to reduce risks with HELOCs, ensure you can repay what you borrow, and keep a close eye on your credit.
- Your lender might re-evaluate your HELOC limit if your home's value drops significantly or your financial situation changes a lot.

## Related guide
- https://ratellow.com/guides/2024-2026-canadian-mortgage-reforms-guide

## Sources
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1
- 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