What if my client has a Home Equity Line of Credit (HELOC) combined with their mortgage?
Key Points
Lenders will check to make sure you can repay your home equity line of credit (HELOC) along with your mortgage and will monitor your credit.
Any borrowing above the 65% HELOC cap (up to the 80% combined limit) must be taken as an amortizing mortgage with scheduled payments, not revolving credit.
Lenders manage their risk by ensuring the average (/glossary/loan-to-value) (LTV) of their HELOCs is below their maximum stated limit.
Primary sources
Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy
Related Questions
How does the stress test affect my 2026 renewal options?
Same-lender renewals and uninsured straight switches (OSFI, November 21, 2024) are exempt from the prescribed MQR. A refinance, an insured switch, or any increase in loan amount still requires the stress test — greater of 5.25% or contract + 2%.
What's the difference between insured and uninsured mortgage renewals?
Insured mortgages face stricter CMHC/Sagen constraints while uninsured mortgages enjoy flexible OSFI-only guidelines.
Should I consider switching lenders or negotiate with my current lender?
Your switching decision hinges on rate differential versus requalification risk, with break-even analysis determining optimal strategy.
When should I start my mortgage renewal process?
Start your renewal process 120-180 days before your current term expires to maximize your strategic options.