Home equity line of credit (HELOC) rates in Canada are variable and directly tied to the Bank of Canada's prime rate. This page compares current HELOC rates across major Canadian lenders and explains what drives rate differences so you can find the best deal for your situation.
Canadian HELOC rates are expressed as prime rate plus or minus a spread. The prime rate is set by each major bank and follows the Bank of Canada's overnight lending rate. When the Bank of Canada raises or lowers its policy rate, HELOC rates adjust accordingly — usually within a few days.
The spread above prime reflects your credit risk and the lender's competitive positioning. Borrowers with excellent credit and significant equity can sometimes negotiate a lower spread, or even prime rate flat at some credit unions.
| Lender | Product | Rate (vs Prime) | Approx. Rate |
|---|---|---|---|
| TD Canada Trust | Home Equity FlexLine | Prime + 0.50% | ~5.45% |
| RBC Royal Bank | Homeline Plan | Prime + 0.50% | ~5.45% |
| Scotiabank | STEP | Prime + 0.50% | ~5.45% |
| BMO | Homeowner ReadiLine | Prime + 0.50% | ~5.45% |
| CIBC | Home Power Plan | Prime + 0.50% | ~5.45% |
| National Bank | All-in-One | Prime + 0.50% | ~5.45% |
| Manulife Bank | Manulife One | Prime + 0.90% | ~5.85% |
| Desjardins | Versatile Line | Prime + 0.50% | ~5.45% |
| Tangerine | Home Equity Line | Prime + 1.00% | ~5.95% |
| First National | HELOC | Prime + 0.65% | ~5.60% |
Rates are approximate and subject to change. Confirm directly with each lender before applying.
Credit unions are not subject to OSFI Guideline B-20 in the same way as federally regulated banks, though provincial regulators apply similar standards. Some credit unions offer HELOC rates at prime or even slightly below prime for well-qualified members:
Borrowers with scores above 720 generally qualify for the best spreads. If your score is below 680, expect prime + 1% or higher, or potential denial at the Big Six banks.
Less equity means more risk for the lender. If your combined LTV (mortgage + HELOC) is close to the 80% maximum, lenders may charge a higher spread.
Stable, verifiable income leads to better rates. Self-employed borrowers with 2+ years of NOAs are generally treated the same as salaried employees at most banks.
Having your mortgage, chequing account, and investments at the same institution gives you negotiating leverage. Ask your mortgage specialist for a rate discount.
By regulation, HELOCs in Canada are variable-rate products. However, some lenders allow you to convert a portion of your HELOC balance to a fixed-rate term loan at any time. This hybrid approach gives you flexibility while locking in some cost certainty on larger balances.
On a $100,000 HELOC balance, a 0.25% rate change equals about $21/month in interest. Over a $300,000 HELOC, that's $63/month per 0.25% move. During periods of rising rates — like 2022–2023 — this can add hundreds per month to your carrying costs if you hold a large balance.
| HELOC Balance | At 5.45%/yr | At 6.45%/yr | At 7.45%/yr |
|---|---|---|---|
| $100,000 | $454/mo | $538/mo | $621/mo |
| $200,000 | $908/mo | $1,075/mo | $1,242/mo |
| $300,000 | $1,363/mo | $1,613/mo | $1,863/mo |
Monthly interest-only estimates. Principal repayment not included.
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Get KOHO Free — Use Code 45ET55JSYAYes. Your HELOC rate adjusts whenever the prime rate changes. Your lender will notify you of changes, but you don't need to renegotiate the product — it adjusts automatically.
Not in the pure HELOC sense. Some lenders offer sub-accounts within a readvanceable mortgage where you can lock part of the balance into a fixed term. But the revolving HELOC portion remains variable.
Yes. Call your lender and ask for a rate review. If you have improved equity or a better credit score, or if you've received a competitive offer elsewhere, use that as leverage.