HELOC Calculator

Line available: $162,500. Your equity is $260,000, but at 85% combined loan-to-value the lender will only lend to $552,500 in total, and your first mortgage already uses $390,000 of that.

YOUR PAYMENT JUMPS AT YEAR 10 BY

39%

From $708.33 a month while you can still draw, to $984.74 once the line closes and the balance has to be repaid over 15 years. That is $276.41 more, and it arrives in a single month with no warning beyond the contract you signed at the start.

Interest-only means you still owe every cent when the draw ends. Ten years of $708.33 pays $85,000 of interest and reduces the balance by nothing at all — you arrive at year 10 owing the same $100,000 you drew, with 15 years to clear it rather than 25. Paying it down from the start instead costs $805.23 a month throughout and saves $20,685 in interest.

The rate is variable, and the ceiling is a long way up. At the 18% lifetime cap the interest-only payment alone would be $1,500.00 — 112% above what you are paying now, before a cent of principal — and $1,610.42 after conversion. Prime moves with central bank policy, so this is the number to test yourself against rather than today rate.

This is an estimate, not financial advice. It assumes a single draw held to the end and a rate that does not move — a real line lets you draw and repay repeatedly, and the rate can change monthly. Annual fees, inactivity fees and early closure charges are not modelled. Interest is deductible only where the money went on substantial improvements to the home securing the line, so check with a tax professional before assuming a deduction. Your home is the collateral.