| Purpose | Prepare for a broker conversation |
| Scope | Education, not a loan approval |
Equity and an approved credit limit are different figures. An estimated value can help start a conversation, but it is not a lender valuation. The amount a lender will consider also depends on its program and your circumstances.
Start with three figures
Write down your estimated home value, what remains on the mortgage, and the amount you want to request. Include other loans secured against the property when discussing the scenario with a broker. If the mortgage is paid off, enter zero for that balance; do not leave it blank.
An example, not a lending offer
Assume a home is worth $450,000 and the mortgage balance is $250,000. The difference is $200,000 of estimated equity before considering other liens or costs. If the owner wants $60,000, the existing mortgage plus that request totals $310,000. Dividing $310,000 by $450,000 gives about 68.9% combined loan-to-value in this simplified example. That calculation does not establish eligibility or promise the requested funds.
For a separate illustration, applying an assumed 80% cap to $450,000 gives $360,000. Subtracting the $250,000 mortgage leaves $110,000 of mathematical headroom before other liens, costs, or program restrictions. The 80% assumption is not a Stonehaven offer, a quoted program limit, or an interest rate.
Why the actual answer can change
A different accepted property value changes the calculation. So can another lien, the property use, or how a lender counts existing credit lines. A maximum credit line and the amount you plan to draw immediately are also different. Identify both during the conversation and ask how the proposed program treats them.
Keep a separate budget for the work or expense you want to fund. If your request uses nearly all the illustrated room, ask what happens if the valuation is lower or costs rise. A useful review should explain that uncertainty rather than turn an estimate into an approval.
Use the calculator with its assumptions visible
The HELOC estimate shows an illustrative range; its assumptions are explained in the calculation methodology. You can change the figures and then request a review. The form asks for the same three figures so a broker can discuss the actual goal.
What to do next
Prepare a current mortgage balance, your best available value estimate, and a brief description of the planned use. Do not attach account statements or send account numbers through the public inquiry form. Use the preparation checklist and request a broker review. For a basic definition, see the CFPB mortgage glossary.