HELOC & Home Equity Loan Payment Calculator
What a HELOC, home equity loan or second mortgage actually costs per month — interest-only or amortized, at any rate.
HELOC & home equity loan payment calculator
What a given amount actually costs per month — interest-only (typical for HELOCs and private seconds) or amortized.
Estimates only — lender terms, fees and compounding conventions vary. Typical ranges: bank HELOCs price from prime + a margin; B-lender seconds ~5.99–7.99%; private seconds ~9–14% plus fees. For a real quote on your file: 1-866-329-8801.
How HELOC payments are calculated
A HELOC payment during the draw period is interest-only, which makes the formula simple:
Balance drawn × annual rate ÷ 12 = monthly payment
Say you draw $80,000 from your line of credit at an illustrative rate of 8.95%. The math is $80,000 × 0.0895 ÷ 12 = $597 per month. Draw only $30,000 of the same line and you pay $224 — interest is charged on what you use, not on the limit you were approved for.
That’s the whole calculation, and it’s also the catch: an interest-only payment never touches the balance. Pay $597 a month for five years on that $80,000 and you’ll have paid $35,820 in interest — and still owe $80,000. The calculator above shows both the interest-only payment and what it takes to actually retire the balance.
What happens to your payment when rates move
Almost every HELOC in Canada has a variable rate tied to prime. When prime moves, your payment moves the next month. On an $80,000 balance, each 1% rate change moves the payment by about $67 a month — so a 2% rise over a year turns a $597 payment into $730.
Before you draw, run the calculator at your quoted rate plus 2%. If that number doesn’t fit your budget, draw less or consider a fixed-rate home equity loan instead, where the payment is locked for the term. Alternative-lender HELOCs follow the same mechanics as bank HELOCs here — the rate floats, and the flexibility cuts both ways.
HELOC payments when the bank has said no
Bank HELOCs generally require a 650+ credit score and clean income documents. If that’s not you, B lenders and private lenders offer HELOCs and HELOC-alternatives qualified on your home’s equity rather than your credit profile. Expect the rate to sit above bank prime-plus offers — that’s the cost of equity-based approval — which means the same payment math with a bigger rate number: $80,000 at an illustrative 10.5% is $700 a month, interest-only.
The practical difference: approval is based on your loan-to-value, typically capped near 75–80% of the home’s value including your first mortgage. There’s no hard credit pull to see your options, and the plan is usually transitional — carry the alternative HELOC while your credit rebuilds, then refinance to a mainstream lender.
When a HELOC is the wrong tool
An honest caution: a HELOC is revolving credit secured by your house. If the goal is consolidating credit cards, the interest-only minimum can quietly recreate the problem — cards paid off, HELOC balance untouched, and open card limits ready to fill up again. If you know you won’t force yourself to pay principal, a fixed home equity loan with a set amortization is usually the safer structure: one payment, one end date, no re-borrowing.
A HELOC earns its keep when the need is staged or uncertain — renovations billed over months, a business bridge, an emergency fund you may never draw. Use the calculator to compare the interest-only carry against a fixed loan payment for your actual numbers.
Frequently Asked Questions
What is a HELOC and how does it work?
A home equity line of credit is revolving credit secured by your house — you draw, repay and redraw up to a set limit, paying interest only on what’s outstanding. Rates float at prime plus a margin, and minimum payments are usually interest-only.
What are the requirements for a HELOC in Canada?
Banks generally want a credit score around 680+, provable income, and total lending within 80% of your home’s value (the revolving portion capped at 65%). Miss any of those and the bank says no — that’s where a home equity loan or second mortgage takes over.
What is the monthly payment on a $50,000 HELOC?
Interest-only at 7.5% is about $313/month; at 9%, about $375/month. Because HELOC minimums are interest-only, the balance never shrinks unless you pay extra — model both options in the calculator above.
Can I get a HELOC with bad credit?
Bank HELOCs are credit-score products and hard to get below ~680. But a home equity loan or second mortgage does the same job on equity instead of score — check how much you could access here.
HELOC vs second mortgage — what’s the difference?
A HELOC is revolving, cheaper, and credit-tested by a bank. A second mortgage is a fixed lump sum from a B or private lender, priced on equity — easier to get, faster to fund, higher rate. Homeowners with strong credit take the HELOC; homeowners rebuilding credit take the second.
Is HELOC interest tax-deductible in Canada?
Only when the borrowed money earns income — investing or funding a business. Using a HELOC for personal spending or debt consolidation isn’t deductible. Keep the two uses in separate accounts and confirm specifics with your accountant.
Want your real numbers, not estimates?
One call gets you an actual range for your property and situation — before any credit check.
📞 1-866-329-8801
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Parm Mehmi, Principal Broker · FSRA #13163 | FCAA #511322 · Licensed in Ontario, Alberta & Saskatchewan
Planning estimates only — not financial, lending or legal advice. Lender terms vary; appraisals and payout statements govern actual figures.
See What This Looks Like in Your City
These numbers are estimates. What you can actually borrow depends on an appraisal of your property and the lenders active in your market. Pick your city for local figures, or call and we will run it with you.
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Alberta
What is the monthly payment on a HELOC?
The formula
Interest-only monthly payment = balance × annual rate ÷ 12
Worked example
On $100,000 drawn at 7.49%: $100,000 × 0.0749 = $7,490 a year, divided by 12 = $624.17 a month interest-only. Principal-and-interest payments are higher but reduce the balance.
Worth knowing: Interest-only keeps the payment low but the balance never falls. Know which you are being offered.
Figures verified August 2026. Estimates only — your actual terms depend on your file.