# What if my client has a Home Equity Line of Credit (HELOC) combined with their mortgage?

> Under OSFI B-20, the HELOC portion of a combined mortgage is capped at 65% LTV; total borrowing (mortgage + HELOC) cannot exceed 80% LTV. Any amount above the 65% HELOC cap must be taken as an amortizing mortgage, not revolving credit.

Category: Renewal
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/renewal/what-if-my-client-has-a-home-equity-line-of-credit-heloc-combined-with-their-mortgage

## Answer
OSFI Guideline B-20 sets two separate limits on combined mortgage–HELOC products. The revolving HELOC portion cannot exceed 65% of the property's value. The total of the amortizing mortgage plus the HELOC cannot exceed 80% LTV on an uninsured mortgage. If a borrower wants to access equity between the 65% HELOC cap and the 80% combined cap, the additional amount must be structured as an amortizing mortgage component with scheduled principal and interest payments — it cannot be drawn as revolving HELOC credit. Lenders must also confirm the borrower can service the combined debt and monitor credit behaviour on the HELOC portion.

## Institutional highlights
- 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.
- The revolving HELOC portion is capped at 65% of your home's value under OSFI B-20; combined mortgage + HELOC cannot exceed 80% LTV.
- 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 loan-to-value (LTV) of their HELOCs is below their maximum stated limit.

## Related guide
- https://ratellow.com/guides/renewal-switch-process

## 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
- 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
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1