How soon can I do a HELOC in Canada🇨🇦?

[Jovan Lewis]

Hello biggerpockets community,

So here is my scenario

We bought a house last year for 408k after hearing they had lowered the price because it needed some TLC.

After buying this home last year , our Cul de sac is now pushing prices of 500k + all homes selling for over asking, average house on our cul de sac being listed for 479k+ and sells in 2 weeks.

Is there any money we can get out of this home this soon to move to a different market to invest into a investment property or way too soon ?

I am new to this but investing is my long term goal

Our current mortgage owing is 389k

Educate me 😁

Thanks!

[Chris Baxter]

@Jovan Lewis  here is a good explanation:  https://www.ratehub.ca/home-eq...

In Canada, you can access up to 65% of the value of your home through a home equity line of credit. However, it's also important to remember that your outstanding mortgage loan balance + your HELOC cannot equal more than 80% of the value of your home.

To determine how much equity is at your disposal, start by taking your home’s current market value and multiplying it by 80%. Next, subtract the balance of your mortgage. The remaining figure is how much you can access through a HELOC - so long as the amount is not worth more than 65% of the value of your home. To be sure, simply divide the HELOC amount by your home's market value.

So... you have no availabl equity to borrow against and likely won't for some time, unfortunately.