Loans & Debt · Lines of credit
Best lines of credit in Canada
Here is the truth no comparison site likes to admit: almost no bank publishes a line-of-credit rate. The number is "Prime plus an adjustment factor" set when you apply. So this page does the honest thing — it shows the few rates that are published, and helps you compare on what actually is disclosed: limits, fees, and secured vs unsecured.
Unsecured personal lines of credit
Backed only by your promise to repay — higher rates, smaller limits, no asset at risk.
| Lender | Rate | Limit | Fees | Notes |
|---|---|---|---|---|
| National Bank rate published | Published tiers: most LOCs Prime + 1.00% (5.45%); Integrated LOC $500–$4,999 at Prime + 7.00% (11.45%) | Varies by tier; Personal Flex Line $5,000+ set in-branch | Varies by product | The only major bank that publishes specific unsecured LOC rate tiers — a rare bit of transparency. |
| Tangerine rate published | 2.99% promo for the first 3 months, then Prime + an adjustment factor set at approval | Up to $30,000 | No annual or monthly fee | The only concrete entry rate in the field — but the promo is lost if you miss the minimum payment twice in a row, and the ongoing rate isn’t published. |
| Scotiabank (ScotiaLine) | Scotiabank Prime + an adjustment factor (not disclosed) | $5,000 – $75,000 | No annual fee; includes a Visa Access Card | The clearest published limit range of the Big Five, and the most explicit about how the rate is set — but the factor itself is set at approval. |
| RBC (Royal Credit Line) | Variable, rises and falls with RBC Prime (no spread disclosed) | From $5,000 | 2 free cheques per cycle, then $2.00 each; no annual fee | Rate is "Prime + factor" set at application — not published. |
| TD (Personal Line of Credit) | Variable, based on TD Prime (no spread disclosed) | Not published | None stated; optional fixed-rate lock | Can optionally be secured with TD investments for a lower rate. |
| CIBC (Personal Line of Credit) | Introductory rate equal to CIBC Prime until Dec 6, 2027, then CIBC Prime + factor (not disclosed) | $5,000 and up | No annual or admin fee; no early-repayment penalty | Has a dated introductory teaser — confirm it is still live and treat it as promotional, not the ongoing rate. |
| BMO (Personal Line of Credit) | Variable, tied to BMO Prime (no spread published) | Not published | No processing or annual fee (per BMO) | BMO’s rate pages could not be verified first-party on our check date — confirm any figure directly with BMO. |
| Simplii Financial | Based on CIBC Prime + a percentage set at approval (not published) | From $5,000 | Minimum payment 2% of balance or $50, whichever is greater | The no-fee-bank option, but the rate is still set on application. |
| Meridian (credit union) | Based on application (Meridian publishes a "LOC Prime" of 4.95%, i.e. Prime + 0.50%) | Set on application | Varies | Even the cleanest credit-union example prices the unsecured LOC on application — a published hard APR is rare anywhere. |
PC Financial does not offer an unsecured personal line of credit; its borrowing products are credit cards and a secured (home-equity) account. Manulife’s lines of credit are secured/readvanceable, not standalone unsecured.
Secured lines of credit (HELOCs)
Backed by home equity — much lower rates, but your house is behind the debt.
The federal limits
A standalone HELOC is capped at 65% of your home’s value for a standalone HELOC. Combined with a mortgage you can reach 80% of your home’s value when combined with a mortgage — but the slice above 65% must be an amortizing, non-readvanceable mortgage portion, not revolving credit (FCAC; OSFI Guideline B-20). You need more than 35% equity (standalone HELOC), or 20% equity (HELOC combined with a mortgage) for a combined plan. See how much room you actually have with the HELOC calculator, and the retiree angle in HELOCs in retirement.
| Product | Rate | Max LTV | Fees | Notes |
|---|---|---|---|---|
| RBC Homeline Plan rate published | Based on RBC Prime + 0.50% (the only HELOC spread published first-party) | Up to 80% of home value total; 65% in the revolving line | None stated | The one bank that publishes a HELOC spread — useful as a benchmark for what "Prime + a small spread" really means. |
| TD Home Equity FlexLine | Variable, based on TD Prime (spread not published) | Up to 80% of home value | No prepayment charge on the revolving portion | Readvanceable; spread set at application. |
| Scotiabank STEP | Prime + spread (not published) | Up to 80% total; up to 65% in line-of-credit products | No additional fee when set up with a Scotia mortgage | Readvanceable; the LOC portion amortizes down to 65% over 25 years. |
| CIBC Home Power Plan | Introductory CIBC Prime until Dec 6, 2027; ongoing spread not published | Approved percentage of property value; minimum $10,000 | $300 property valuation fee | Carries a property-valuation fee most competitors don’t list. |
| National Bank All-in-One | Prime + a spread (the numeric spread is not published) | 65% in the line alone; 80% combined with a mortgage | $7/month per account | Readvanceable all-in-one; the only one here with a stated monthly account fee. |
BMO ReadiLine and Manulife One are readvanceable HELOCs whose current rates could not be verified first-party on our check date — confirm directly with the lender before relying on a figure.
How to actually choose
Since the rate is mostly invisible until you apply, compete on what you can see. For an unsecured line: favour no annual fee (most here), a limit that fits your need, and a lender you already bank with (your history can sharpen the offer). For a HELOC: the rate gap between lenders is small — they cluster near Prime plus a slim spread — so weigh setup fees (CIBC’s $300 valuation, National Bank’s $7/month) and whether it is readvanceable. And always ask the rate question directly: "Prime plus what, for me?"
One strategic note for consolidating debt: a line of credit is revolving and usually variable, which makes it flexible but easy to let linger. A fixed-rate consolidation loan gives the debt a hard end date. Model both with the consolidation calculator before deciding.
Frequently asked questions
What is the interest rate on a line of credit in Canada?
Almost every lender prices a personal line of credit as "Prime plus an adjustment factor" — and the factor is set when you apply, based on your credit, not published in advance. With Canadian prime at 4.45%, a strong borrower might land a point or two above it on an unsecured line, and close to Prime on a secured (HELOC) one. The honest takeaway: you generally cannot comparison-shop a LOC rate from a website the way you can a GIC — you have to apply to see your number.
Which bank has the best line of credit rate?
No one can answer that from published rates, because almost no bank publishes one. National Bank is the rare exception — it lists specific tiers (most lines at Prime + 1.00%, its small Integrated LOC at Prime + 7.00%). Tangerine advertises a 2.99% rate for the first three months. Everyone else shows only "variable, based on Prime." So shop on the things that are disclosed — limit, fees, secured vs unsecured — and then compare the actual rate offers you receive.
What is the difference between a secured and unsecured line of credit?
An unsecured line of credit (a personal LOC) is backed only by your promise to repay, so it carries a higher rate and a smaller limit. A secured line — almost always a HELOC backed by home equity — carries a much lower rate because the lender can fall back on your home. The trade is real: a HELOC can be several points cheaper, but you are putting your house behind the debt. For retirees weighing one, see our HELOC calculator and HELOCs in retirement guide.
How much can I borrow on a HELOC?
Federal rules cap it. You can borrow up to 65% of your home’s value for a standalone HELOC, and up to 80% of your home’s value when combined with a mortgage when the HELOC is combined with a mortgage — but the portion above 65% must be an amortizing, non-readvanceable mortgage, not revolving credit (FCAC; OSFI Guideline B-20). You also need more than 35% equity (standalone HELOC) for a standalone HELOC, or 20% equity (HELOC combined with a mortgage) for a combined one. Run your numbers through the HELOC calculator.
Is a line of credit better than a personal loan for consolidating debt?
A line of credit is revolving and usually variable-rate; a personal loan is a fixed amount at a fixed rate over a set term. For consolidating debt, a fixed-rate loan is often the more disciplined choice — the payment is set and the debt has a defined end date, whereas a LOC’s flexibility can let balances linger. Compare both: see the best debt-consolidation loans and model the math with the consolidation calculator.
Sources
- Canadian prime rate — RBC prime rate page
- National Bank published LOC tiers — nbc.ca rates
- HELOC 65%/80% limits — FCAC and OSFI Guideline B-20
- Each lender’s own product/rate page (linked in the tables above), verified June 13, 2026.
Educational information, not financial advice. Line-of-credit rates are variable and set per applicant; the figures here were verified at each lender’s own pages on June 13, 2026 and change without notice. Where a lender does not publish a rate (most of them), that is stated rather than estimated. A HELOC is secured against your home. Confirm all terms directly with the lender before borrowing.