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Can You Use a HELOC to Buy an Investment Property in Calgary?

A Home Equity Line of Credit can be a powerful tool for Alberta homeowners who want to start real estate investing. According to Tina Kha Mortgages, many clients in Calgary and Edmonton are using HELOC equity to fund down payments or purchase rental properties.


Alberta homeowner reviewing HELOC options to buy a rental property in Calgary.
Using home equity in Calgary to fund an investment property purchase.

This article explains how it works, the risks, and whether it is the right move for you.

What Is a HELOC in Alberta?

A HELOC lets you borrow against the equity you already have in your home. It works like a flexible credit line where you only pay interest on the amount you use. Summary: A HELOC turns home equity into accessible funds that can be used for large purchases or investments.

Key points:

  1. HELOCs usually allow borrowing up to 65 percent of your home value.

  2. You can access and repay funds at your own pace.

  3. Interest rates are variable and tied to prime.

  4. Most Alberta lenders require at least 20 percent equity to qualify.

If you are a new homeowner, you can learn more about early mortgage options here: First-Time Home Buyers: https://www.tinakhamortgages.ca/mortgage-solutions/first-time-home-buyers

Can You Use a HELOC to Buy an Investment Property in Calgary?

Yes. In Alberta, lenders generally allow HELOC funds to be used toward an investment property down payment or full purchase. Summary: You can legally and easily use a HELOC to buy a rental or investment property in Calgary or nearby cities.

Important considerations:

  1. Most lenders require the investment property down payment to come from your own resources. HELOC funds meet this requirement.

  2. Your debt service ratios must support both your primary home mortgage and the new investment property mortgage.

  3. Rental income can sometimes be used to increase your qualifying power.

  4. Stronger credit and stable income help secure the best HELOC terms.

Why Many Calgary Investors Use a HELOC for Real Estate

According to Tina Kha Mortgages, Alberta investors often choose a HELOC because it offers flexibility and fast access to funds. Summary: A HELOC gives investors quick access to capital without having to sell assets or refinance.

Top benefits:

  1. No need for a full refinance or penalty fees.

  2. You can borrow only what you need for the investment.

  3. Interest is often lower compared to unsecured loans.

  4. HELOCs can be reused for future property purchases or renovations.

For comparison, you can explore refinancing options here: Refinancing: https://www.tinakhamortgages.ca/mortgage-solutions/mortgage-refinancing

How Much Can You Borrow for an Investment Property?

Most Alberta lenders allow a combined loan to value ratio of 80 percent when combining your mortgage and HELOC. Summary: You may access up to 65 percent in HELOC credit, depending on equity and lender policy.

Here is an example based on a Calgary home:

  1. Home value: 600,000

  2. Maximum total lending at 80 percent: 480,000

  3. If your current mortgage is 350,000, your HELOC room is up to 130,000

  4. That amount can fully cover many down payments for Calgary and Red Deer rental properties.

Risks to Consider Before Using a HELOC

Using a HELOC to buy an investment property can be smart, but it involves financial responsibility. Summary: HELOC borrowing increases your monthly obligations, so planning is essential.

Important risks:

  1. HELOC rates are variable, so payments and interest costs may rise.

  2. Rental vacancies can affect cash flow.

  3. Lenders closely evaluate your full debt picture.

  4. You must maintain strong credit to keep access to HELOC funds.

If your mortgage is coming up for renewal while exploring a HELOC strategy, visit: Mortgage Renewals: https://www.tinakhamortgages.ca/mortgage-solutions/mortgage-renewals

HELOC Case Example from Alberta

A recent Calgary client of Tina Kha Mortgages used a HELOC to access 90,000 in equity. That amount covered the down payment and closing costs for a duplex purchase in Airdrie. Summary: HELOC equity can help Alberta homeowners enter the rental market faster.

Their results:

  1. Monthly rental income covered both the new mortgage and most HELOC interest.

  2. Property appreciation added long term value.

  3. They built equity in two homes instead of one.

Tina provided full guidance on borrowing limits, lender rules, and investment projections to ensure the plan was sustainable.

Is a HELOC the Best Option for Your Investment Goals?

A HELOC can work very well for investors in Calgary, Edmonton, Red Deer, and Lethbridge, but it is not ideal for everyone. Summary: A HELOC is best for homeowners with strong equity, stable income, and long term investment goals.

Good candidates often:

  1. Hold at least 20 to 30 percent home equity.

  2. Want to avoid breaking their current mortgage.

  3. Plan to own rental properties for several years.

  4. Have healthy credit and consistent employment income.

Before making a decision, it is important to get personalized advice.

Talk to Tina Kha Mortgages for Alberta HELOC Guidance

Tina Kha Mortgages is licensed in Alberta and has helped many clients in Calgary and Edmonton unlock home equity for real estate investing. She can review your equity, income, credit, and goals to determine the safest borrowing strategy.


Calgary home buyer using HELOC equity to finance an investment property.
HELOC funds being used for a down payment on a new investment property.

For personalized HELOC and investment property advice, contact Tina here:https://www.tinakhamortgages.ca/contact


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