A Home Equity Line of Credit (HELOC) can help you tap into your home equity with the same flexibility as a typical line of credit or credit card and the low interest rates of a secured loan. You can borrow from and make payments to a HELOC at any time, and interest rates on HELOCs are typically much lower than other unsecured alternatives. Check out the latest rates.
Lender | Rate | Minimum Monthly Payment (Interest-only) |
---|---|---|
Laurentian | 2.70% | $225 |
motusbank | 2.75% | $229 |
TD | 2.95% | $246 |
RBC | 2.95% | $246 |
CIBC | 2.95% | $246 |
BMO | 2.95% | $246 |
nuborrow | 2.95% | $246 |
Both mortgage refinancing and a home equity line of credit (HELOC) gives you access to your equity, but there are differences in when you can borrow, how much you can borrow, and costs associated with borrowing.
After deducting the current balance of your mortgage and other loans secured by your home, a mortgage refinance allows you to borrow up to 80% of the value of your home. Refinancing gives you a one-time lump-sum cash amount that you can then use for purposes such as debt consolidation or for investing. Interest will immediately start to accrue on this full borrowed amount.
HELOC | Mortgage Refinance | Home Equity Loan | |
---|---|---|---|
Only pay for what you borrow | Yes | No | No |
Maxmium value of your home that you can borrow | 65% | 85% | 80% |
Access to credit | Anytime | One-time | One-time |
Term | Revolving(Open) | Fixed(Closed) | Fixed(Closed) |
Required Payments | Interest only | Interest and principal | Interest and principal |
A HELOC allows you to borrow up to 65% of the value of your home. If it is a standalone HELOC, your credit limit will not increase even as you make payments towards the mortgage principal. A HELOC is often bundled with a mortgage, which allows for your credit limit to increase as the mortgage principal is paid down. You will also only pay interest on the amount that you use.
HELOC | Mortgage Refinance | Reverse Mortgage | |
---|---|---|---|
Only pay for what you borrow | Yes | No | No |
Maxmium value of your home that you can borrow | 65% | 85% | 55% |
Access to credit | Anytime | One-time | Flexible |
Term | Revolving(Open) | Fixed(Closed) | Flexible/Life |
Required Payments | Interest only | Interest and principal | None |
The RBC Homeline Plan® is an all-in-one lending solution that combines a traditional mortgage with a HELOC (RBC Royal Credit Line®). One of its advantages is that you can lock-in a rate for your HELOC to protect yourself from interest rate fluctuations. You can also divide your mortgage into fixed-rate and variable-rate portions. For terms and eligibility, talk to your local RBC branch advisor.
Program | Term Length | Type | Rate |
---|---|---|---|
![]() RBC Homeline Plan® | 4-Year Fixed | Fixed | 2.29% |
![]() RBC Homeline Plan® | 5-Year Fixed | Fixed | 2.39% |
![]() RBC Homeline Plan® | 5-Year Variable | Variable | 1.60% |
The BMO Homeowner ReadiLine® is BMO's combination mortgage and HELOC product. If you have 20% down-payment or equity in your home, you can borrow up to 80% of your home's value between a mortgage and line of credit. One of the features of Homeowner ReadiLine® is that your HELOC's credit limit increases as you make mortgage payments, allowing you to quickly tap into your extra home equity. For terms and eligibility, talk to your local BMO branch advisor.
Program | Term Length | Type | Rate |
---|---|---|---|
![]() BMO Homeowner ReadiLine® | 1-Year Fixed | Fixed | 2.79% |
![]() BMO Homeowner ReadiLine® | 2-Year Fixed | Fixed | 2.94% |
![]() BMO Homeowner ReadiLine® | 3-Year Fixed | Fixed | 3.49% |
![]() BMO Homeowner ReadiLine® | 4-Year Fixed | Fixed | 4.09% |
![]() BMO Homeowner ReadiLine® | 5-Year Fixed | Fixed | 4.79% |
![]() BMO Homeowner ReadiLine® | 5-Year Variable | Variable | 2.45% |
![]() BMO Homeowner ReadiLine® | 6-Year Fixed | Fixed | 5.24% |
![]() BMO Homeowner ReadiLine® | 7-Year Fixed | Fixed | 5.40% |
![]() BMO Homeowner ReadiLine® | 10-Year Fixed | Fixed | 5.80% |
The above content and rates are for informational and educational purposes only. WOWA assumes no liability for the accuracy of information presented, and will not be held responsible for any damages resulting from its use. Please check with your financial advisor to see if a HELOC or related product is right for you.