The Home Equity Line of Credit (HELOC) is one of the most powerful and least used financial tools by Quebec homeowners. It allows access to your property's equity at rates much lower than any other type of credit.
Unlike a personal loan (6 to 12%) or credit card (19 to 22%), the HELOC is negotiated at the prime rate (P) + a margin of 0.5 to 1%. With a prime rate around 4.45% in 2026, your HELOC can be accessible at about 4.95 to 5.45%.
Key Points
HELOC Examples Based on Property Value
Frequently Asked Questions
Does your mortgage need to be paid off to open a HELOC?+
No. You can open a HELOC if you have sufficient equity in your property. The rule is that mortgage + HELOC cannot exceed 80% of the value. So if your home is worth $500,000 and you have a $250,000 mortgage balance, you can open a HELOC of $150,000 (80% = $400,000 − $250,000).
Is HELOC interest tax deductible?+
Yes, if funds are used to generate income (rental investment, stock purchases). No, if used for personal expenses or primary residence renovations. Consult an accountant to optimize your situation.
Can you open a HELOC on an income property?+
Yes, but conditions are stricter. The rate is generally slightly higher and the limit may be reduced to 65% or less. Some lenders specializing in real estate investment offer better conditions.
Can a HELOC be closed by the lender?+
Yes. Lenders can reduce or close your HELOC if your property value drops significantly or your financial situation deteriorates. It's rare, but it's a risk to consider if you're counting on these funds long-term.
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