A Home Equity Line of Credit (HELOC) is a revolving credit facility secured against your home's equity. Unlike a mortgage lump sum, a HELOC works like a credit card — borrow, repay, and borrow again up to your approved limit. In Canada, lenders can offer HELOCs up to 65% of appraised value (OSFI Guideline B-20 for combined mortgage + HELOC amounts). Interest is charged only on the outstanding balance.
Best HELOC Rates Canada 2026 – Compare Home Equity Lines of Credit
By BestGuideReviews Research Team · Updated June 2026 · Affiliate disclosure · Rates verified against FCAC
What Is a HELOC?
A Home Equity Line of Credit (HELOC) is a revolving credit facility secured against your home's equity. Unlike a mortgage lump sum, a HELOC works like a credit card — borrow, repay, and borrow again up to your approved limit. In Canada, lenders can offer HELOCs up to 65% of appraised value (OSFI Guideline B-20 for combined mortgage + HELOC amounts). Interest is charged only on the outstanding balance.
Current HELOC Rates (June 2026)
| Lender | HELOC Rate | Min. Equity |
|---|---|---|
| RBC Homeline Plan | Prime + 0.50%* | 20% |
| TD Home Equity FlexLine | Prime + 0.50%* | 20% |
| Scotiabank STEP | Prime + 0.50%* | 20% |
| CIBC Home Power Plan | Prime + 0.75%* | 20% |
| BMO ReadiLine | Prime + 1.00%* | 20% |
*Bank of Canada prime rate as of June 2026: 4.95%. Verify current rates with lenders.
HELOC Risks
HELOCs are variable-rate — when BoC raises prime rate, your payments increase immediately. Between 2022–2024, prime rose from 2.45% to 7.20%. HELOC payments on a $200,000 balance increased ~$885/month over that period. OSFI's 65% LTV cap limits maximum exposure but does not eliminate interest rate risk.