How Do I Know How Much I Can Get for a Home Equity Line of Credit?

Author: Boychuk Mortgage Group |

A home equity line of credit is combined with a mortgage as a secondary source of funds should you need them in your future. With any HELOC product, you will need a minimum down payment of 20%, maxing out at a total HELOC value of 65% of your homes current value. Let’s look at an example:

  • Let’s assume your lender offers a combined loan to value of 80%, meaning the combination of your total mortgage and HELOC option is 80% of your homes current value.
  • Your appraised home valuation comes in at $1,000,000, and your current mortgage balance is $450,000.
  • Based on the given numbers and subject to qualifying, you may add an additional HELOC to your mortgage of $350,000.
    (Your home value x 80% - your mortgage balance).
  • You now have the option to advance all or some of those funds, or you can leave the credit line untouched until needed.


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