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

> HELOCs are non-amortizing credit lines secured by residential property.

Category: Strategy
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/strategy/what-are-the-rules-around-home-equity-lines-of-credit-helocs

## Answer
HELOCs are non-amortizing credit lines secured by residential property. Given that HELOCs can contribute to a consumer's debt burden, FRFIs must manage the associated risks, including the expectation of full repayment and enhanced monitoring of a borrower's credit quality. The maximum non-amortizing HELOC component of a residential mortgage at a FRFI is capped at a loan-to-value (LTV) ratio of 65% or less. The details are below:

## Institutional highlights
- A HELOC lets you borrow money against the equity in your home; reverse mortgages are a separate product and not classified as HELOCs.
- Lenders need to manage the risks of HELOCs, and they expect you to eventually pay back the full amount you borrow.
- You can generally only borrow up to 65% of your home's value with a HELOC.
- If you need to borrow more than 65% of your home's value, that extra amount needs to be paid off with a regular mortgage payment schedule.
- Your lender may 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/private-lending-mics-101

## 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
- Disclosure requirements — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#3.1