Who orders this
- Homeowners opening or increasing a home equity line of credit
- Brokers and lenders arranging readvanceable mortgages
- Owners planning renovations, investments or family support
- Retirees reviewing how much equity they hold
How a home equity appraisal sets your limit
A home equity line of credit is secured by your property, so the limit flows from the appraised value. At federally regulated lenders, the revolving portion is generally limited to 65% of the home’s value, and the line plus any mortgage to 80%. Credit unions and other lenders may set their own policies. The better supported the value, the more room you may have to work with.
- Stand-alone HELOC with no mortgage
- Readvanceable mortgage that combines a mortgage and a line
- Limit increase on an existing line after the home has gained value
- Moving a HELOC to another lender
When lenders need a full appraisal
Some lenders can approve a small line with an automated estimate, but many want a full appraisal when the limit is large, the home is unusual, or the area has few recent sales. A report also gives you an independent number to plan with rather than a guess. If your lender has a required format or approved list, tell us when you order and we will assign accordingly.
Frequently asked questions
Do I need an appraisal for a HELOC across Canada?
Many lenders require one, particularly for larger limits or homes that are harder to value automatically. Others may approve using an automated valuation. Ask your lender or broker, and if a full appraisal is required, order it with the lender named on the report.
How much can I borrow on a home equity line of credit?
Federally regulated lenders generally limit the revolving HELOC to 65% of the appraised value, and the combined total with your mortgage to 80%. Your income, credit and the lender’s own policy also matter. The appraisal sets the value used in those limits.
Can I get my HELOC limit increased after renovations?
Often, yes. If improvements have added value, a new appraisal can support a request to increase the limit. Keep receipts, permits and before and after photos to show the appraiser what changed.
Is a home equity appraisal different from a mortgage appraisal?
The inspection and method are largely the same. The difference is the purpose and the lender’s requirements, which the appraiser reflects in the report. Always state that the appraisal is for a HELOC and name the lender when you order.