Illustrative example
Homeowners renovating room by room
The challenge. They did not want to borrow the whole budget on day one.
How MKG structured it. We set up a HELOC they could draw as each stage was invoiced.
MKG Mortgages · GTA
HELOC
Reviewed by Micky Khaneka, licensed mortgage broker
A HELOC is a revolving limit secured by your home. Interest is charged on the amount you draw, and you can pay it back and draw again. It can sit beside the mortgage or be part of a new one.
MKG Mortgages compares that flexibility with a straight refinance, because a limit you do not need is still a charge on the house. This is arranged for homeowners across the GTA.
- CMP Top 75
- FLOW Lending Group, Brokerage #12864
- M21002608
Micky Khaneka, licensed mortgage broker, M21002608, FLOW Lending Group, Brokerage #12864
When is a HELOC the better fit?
A HELOC fits a cost that arrives in stages, such as a renovation you will not spend on day one. It is a weak fit when you need one fixed payment and a closed balance. MKG compares the limit with a refinance before either is set up.
- Set up a revolving limit beside the mortgage for costs that arrive in stages.
- Compare that limit with a refinance when the project has a fixed price.
- Charge interest on what you draw, and leave the undrawn room available.
What does a HELOC example show?
An illustrative example shows a limit, a draw, and the interest on that draw, next to a refinance that would borrow the whole budget at once. The unused room is the point of the HELOC. The example is not a commitment to advance the limit.
Illustrative example
Owners who wanted a buffer next to the mortgage
The challenge. A readvanceable offer mixed an amortizing piece with a revolving piece.
How MKG structured it. We read the split and kept the revolving limit at the amount they expected to use.
Illustrative example
A household with a one-time project and a firm quote
The challenge. A limit was more flexible than they needed.
How MKG structured it. We compared the HELOC with a refinance sized to the quote and chose the structure that matched the job.
A HELOC is still a charge on the home.
How is a HELOC file handled?
The current mortgage, the value, and the purpose of the draws come first. Some first mortgages can sit beside a HELOC. Others have to be replaced. The status certificate matters when the home is a condo. The lender still sets the limit.
01
Name what the limit is for
A staged renovation and a permanent extra mortgage are different requests.
02
Compare it with a refinance
A fixed project often fits a refinance sized to the job. A limit fits spending that comes in draws.
03
Read the charge
A HELOC is still registered on the home. The unused room is not free money.
What should I decide before I ask for a limit?
Decide whether you need revolving room or a single payout. A limit you keep drawn at the maximum is an expensive mortgage with extra steps. If the first mortgage has a large penalty, say so at the start. That cost can decide the structure.
The work will be drawn in stages
You do not want to pay interest today on the full renovation budget.
You want a buffer beside the mortgage
The payment on what you actually draw has to fit.
A lender offered a readvanceable mortgage
We read the split between the amortizing piece and the revolving piece.
| Tool | How you receive funds | What you pay on |
|---|---|---|
| HELOC | Draws, then you can draw again | The amount outstanding |
| Refinance | One new mortgage on closing | The full new balance |
| Second mortgage | Usually one advance, behind the first | That advance, for a short term |
Sources. FCAC — mortgages · OSFI Guideline B-20 Published rules change. Read the current page, and confirm tax with your lawyer, before you rely on a figure.
Is the HELOC page city-specific?
The HELOC page covers the GTA. City hubs link here because a separate HELOC URL is not published for each city. A condo in Toronto and a house in Oakville use the same product choice. The paperwork for the building is what changes.
What did a client say about this kind of file?
The note below is paraphrased from a public Google review. It is one client's experience, not a promise that the next file ends the same way. A rate in a client's words is not an offer from MKG. The lender still decides.
A homeowner wrote that the difference between a revolving limit and a new mortgage payment was made clear before anything was signed.
Paraphrased from a public Google review of MKG Mortgages. Names and identifying details are left out.
Who is licensed to handle the file?
Micky Khaneka is a licensed mortgage broker, FSRA M21002608, at FLOW Lending Group, Brokerage #12864. Canadian Mortgage Professional named him to the CMP Top 75 for 2026, at number 15 in Canada. The lender still decides. The lender still decides.
Micky Khaneka, licensed mortgage broker, M21002608, FLOW Lending Group, Brokerage #12864
The firm serves clients in English, Hindi, Punjabi and Bengali.
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What do people ask first?
These are the questions that show up before a file is opened. The short answer sits under each one in the page, so you can read it without opening a box. The lender still decides, and a figure in an example is not an offered rate.
Is a HELOC a mortgage?
It is a charge on the home with a revolving limit. Interest is charged on the drawn balance. It is not a credit card.
Can I get a HELOC instead of refinancing?
Sometimes. If you need one lump sum for a defined job, a refinance can be simpler. We compare the two.
Does the rate move?
Most HELOC rates are variable and tied to a lender's prime. Any figure is on approved credit and is not a standing offer.
Can I use a HELOC for a down payment on another property?
Often, yes, especially for a rental or second property. You use the equity in your current home as the down payment, and the lender counts the HELOC payment in your debt ratios. Remember you're borrowing the whole price, so the numbers need to work even if rents dip or rates rise.
For an insured home you'll live in, borrowed down payments are only allowed in certain programs. A HELOC can go up to 65% of your home's value. We'll set it up so the investment stays manageable.
Checked October 18, 2026. https://www.canada.ca/en/financial-consumer-agency/services/mortgages/home-equity-line-credit.html https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html
How do I start?
Book a time or send the statement, the agreement, or the assessments you already have. The first call is free. It is a review of the file, not a promise of approval, and any rate talk stays illustrative and on approved credit.
Any rate or payment mentioned is illustrative and on approved credit (OAC). It is not a quote, a commitment, or a current offer.