Refinancing and HELOCs in Calgary
Most lenders let you borrow up to 80% of your home's value through a refinance, or up to 65% through a home equity line of credit (HELOC) on its own. On CREB's August detached benchmark of $744,300, that's $595,440 through a refinance and $483,795 through a HELOC. Subtract what you owe and you have the money you can reach. Detached values in Calgary held within 1% of last year, so detached owners have kept most of their equity, while apartment owners have less after an 8% drop.
How much equity can I take out of my Calgary home?
Take 80% of your home's value for a refinance, or 65% for a HELOC alone, and subtract your mortgage balance. Here are the limits on each Calgary benchmark.
| Home type (August benchmark) | Value | Refinance limit (80%) | HELOC-only limit (65%) |
|---|---|---|---|
| Apartment | $295,400 | $236,320 | $192,010 |
| Row home | $415,200 | $332,160 | $269,880 |
| Semi-detached | $690,500 | $552,400 | $448,825 |
| Detached | $744,300 | $595,440 | $483,795 |
With $400,000 owing on a detached home at the benchmark, a refinance reaches $195,440 and a HELOC alone reaches $83,795. The house and the balance are the same in both cases, and the choice of product changes the amount by $111,645. Your own appraisal sets your number.
Should I choose a HELOC or a refinance?
Choose a HELOC when you need money in stages or want it on standby, and a refinance when you need a known amount once. A HELOC charges interest only on what you've drawn and the room comes back as you repay, at a variable rate. A refinance replaces your mortgage with a larger one, usually at a lower rate, with a fixed payment that pays the debt down.
Many lenders offer both in one product: a mortgage plus a HELOC, where the HELOC portion can reach 65% and the total stays at 80%. That setup suits renovations, which rarely arrive as one bill.
Can I refinance to pay off credit card debt?
Yes, if your equity and income support it. Credit cards commonly charge around 19% on purchases and 22% on cash advances, according to the Financial Consumer Agency of Canada, and a mortgage rate is usually far below that, so moving the debt can cut your monthly payments by hundreds of dollars.
The risk is how long you take to repay it, since card debt spread over a 25-year mortgage can cost more interest in total than paying it off over 3 years at a higher rate. Keep paying what you paid on the cards, put the difference against the mortgage as a prepayment, and lower the limits on the cards you cleared so the balance doesn't come back.
Will I pay a penalty to refinance in Calgary?
If you're partway through your term, yes, at most lenders. On a fixed mortgage the penalty is usually the greater of 3 months' interest or an interest rate differential; on a variable it's usually 3 months' interest. Compare the penalty to what the refinance saves you before you break anything.
If the penalty is too high, 2 alternatives can work: a HELOC registered behind your current mortgage, or a blend-and-extend with your current lender, which some lenders offer. See the penalty comparison across 9 lenders for how far the formulas differ.
What does a refinance cost in Alberta?
Alberta has no land transfer tax, so a refinance costs the land titles fee on the new mortgage, an appraisal and legal fees. The land titles fee is $50 plus $5 for every $5,000 of the mortgage, which is $650 on a $595,440 refinance of the detached benchmark.
Some lenders cover appraisal and legal costs on a refinance. A refinance is a new approval, so you qualify again at the stress test rate, and your income has to support the larger balance.
Is HELOC interest tax deductible?
It can be when the money you borrow is used to earn investment or business income, and the Canada Revenue Agency looks at what the money was used for, so keep borrowed money separate from personal spending. Talk to your accountant before you draw. The EQUITY framework covers how we set this up.
Frequently asked questions
How much can I borrow against my Calgary home?
- Up to 80% of its value minus your balance through a refinance, or 65% through a HELOC alone. On a $744,300 detached home with $400,000 owing, that's $195,440 or $83,795.
Can I refinance an insured mortgage?
- You can, but the new mortgage is uninsured, so it's capped at 80% of your home's value and you qualify under the stress test again.
Is a HELOC or a refinance cheaper?
- A refinance usually carries a lower rate, and a HELOC only charges interest on what you use. For money you'll spend over time, a HELOC can cost less in total even at a higher rate.
How long does a refinance take in Calgary?
- Usually a few weeks, covering the approval, the appraisal and the lawyer registering the new mortgage at Alberta Land Titles. Starting before a renovation contract is signed avoids a rushed file.
Do I need an appraisal to refinance?
- Usually, yes. The lender needs today's value to set the 80% limit. Some lenders accept an automated valuation on lower balances, and many cover the appraisal cost on a refinance they approve.
Can I refinance a Calgary rental property?
- Yes. Most lenders allow a rental refinance, and some cap it below the 80% limit that applies to a home you live in. The rent has to support the larger payment under the lender's rental income method.
Can I consolidate a car loan into my mortgage?
- Yes, the same way as credit cards, if equity and income allow. It lowers the payment, and it stretches a car you'll replace in a few years over decades, so plan extra payments to clear that portion faster.