What is a good HELOC rate in Canada?

A good HELOC rate in Canada is prime rate or prime minus a small discount (e.g., prime - 0.10%). Most HELOCs are variable rate, tied to the prime rate. As of 2026, competitive HELOC rates are around 5.70-6.45% depending on the lender and your credit profile.

How much can I borrow with a HELOC?

You can typically borrow up to 65% of your home's appraised value minus your outstanding mortgage balance. Combined with your mortgage, total borrowing cannot exceed 80% of the home's value.

Is a HELOC better than a personal loan?

HELOCs generally have much lower interest rates (prime to prime + 1%) compared to personal loans (7-15%). However, HELOCs use your home as collateral. A HELOC is better for large, ongoing expenses; personal loans are better for fixed, one-time borrowing without risking your home.

Best HELOC Rates in Canada for 2026

Best HELOC Rates Canada 2026

Lender	HELOC Rate	Type	Notes
HSBC	Prime - 0.10%	Variable	Competitive for existing clients
Tangerine	Prime + 0.00%	Variable	No branch visit needed
Desjardins	Prime + 0.00%	Variable	Quebec-focused
RBC Homeline	Prime + 0.50%	Variable	Readvanceable mortgage option
TD Home Equity FlexLine	Prime + 0.50%	Variable	Integrated with TD mortgage
BMO Homeowner’s Line of Credit	Prime + 0.50%	Variable	BMO clients
Scotiabank STEP	Prime + 0.50%	Variable	Readvanceable
CIBC Home Power Line of Credit	Prime + 0.50%	Variable	CIBC clients

Rates as of early 2026. Actual rate depends on credit score, loan-to-value, and relationship with lender.

How HELOCs Work

Feature	Details
Rate type	Variable (tied to prime rate)
Borrowing limit	Up to 65% of home value (minus mortgage)
Combined max	Mortgage + HELOC ≤ 80% of home value
Repayment	Interest-only minimum, principal optional
Draw period	Revolving (borrow and repay as needed)
Secured by	Your home (registered as second charge)

HELOC Borrowing Example

Home Value	Mortgage Balance	Max HELOC	Available Credit
$500,000	$300,000	$325,000 ($500K × 65%)	$25,000
$700,000	$350,000	$455,000 ($700K × 65%)	$105,000
$1,000,000	$500,000	$650,000 ($1M × 65%)	$150,000

HELOC vs Other Borrowing

Feature	HELOC	Personal Loan	Personal Line of Credit
Interest rate	Prime to Prime + 1%	7-15%	Prime + 2-5%
Secured	✅ Your home	❌ Unsecured	❌ Unsecured
Revolving	✅ Borrow/repay anytime	❌ Fixed amount	✅ Revolving
Risk	Home at risk	No home risk	No home risk
Best for	Renovations, investing	Fixed one-time expense	Emergency fund backup

Who Should Get a HELOC

Profile	Recommendation
Home renovations	✅ Low-rate access to equity
Debt consolidation	✅ Lower rate than credit cards
Investment loan (Smith Manoeuvre)	✅ Interest may be tax-deductible
Emergency fund backup	✅ Inexpensive safety net
Spending beyond means	❌ Don’t use home equity frivolously