How is interest rate calculated on my line of credit?

The interest rate for the Homeowner’s Line of Credit is a variable rate based on BMO’s Prime Rate plus an adjustment factor depending on the specifics of your loan.

What’s the difference between a homeowner’s line of credit and a home improvement loan?

Happy to sort this out. A home improvement loan or home equity loan is a one-time loan for a set amount of money you can use only once. With a homeowner’s line of credit, you have more flexibility to borrow what you need as you need it, and keep using it until you hit your credit limit.

Navigation skipped

Homeowner’s Line of Credit

Take on bigger projects by using up to 65% of your home’s value, while also lowering your borrowing costs.^1,²

Book an appointment

Why you'll like it

Use it anytime

Borrow what you need, when you need it. Starting at $5,000, this ongoing line of credit lets you borrow up to 65% of your home’s value^1,². And as long as you have available credit and make your minimum payments, you can keep borrowing at any time. No need to reapply.

Turn home equity into cash

Your home’s equity is the difference between its market value and how much you still owe on your home. As housing prices rise or you pay off your mortgage, you’ll have more home equity to tap into.

Repay at your own pace

Low minimum monthly payments help keep the cost of borrowing affordable. Enjoy interest-only payments.³

Tip: With a line of credit, you’re only charged interest on the amount you borrow. So, if you have a $75,000 line of credit and only borrow $20,000, you’re only charged interest on the $20,000.

How to apply for a Homeowner’s Line of Credit

Book an appointment at a BMO branch to talk with a lending expert.

Come in, bring the documents below and let’s talk about what can work for you.

We’ll review your situation and come up with a line of credit plan for you.

Access your money at a BMO branch or with line of credit cheques.⁴ If you have a BMO chequing account, use your line of credit via online or mobile banking.

Let’s do this! What do I need before I apply?

Government-issued photo ID
Proof of employment such as a letter from your employer or recent paystubs

For full details on what to bring, check out What to bring to a borrowing appointment.

Book an appointment

Protect your Homeowner’s Line of Credit

Balance Protection (Life Insurance and Critical Illness Insurance)
May reduce or pay off your line of credit balance up to the maximum insurable limit if you pass away or if you’re diagnosed with a covered illness.
Learn More
Payment Protection (Disability and Job Loss Insurance)
Your regular line of credit payments may be fully or partially covered if you’re unable to work due to a disability or involuntary job loss.
Learn More

Homeowner’s Line of Credit F A Qs

The BMO prime lending rate is the annual rate we use to set the variable interest rates for our loans, lines of credit and mortgages. The actual rate you’ll get on your mortgage or line of credit is based on many factors in addition to the Prime Rate.

Have more questions?

Find a branch
Locate a BMO branch near you.
Find a branch
Come talk to us
Visit a branch to get expert insight and discuss your options.
Book an appointment
Call us
Give us a call, 24 hours a day, 7 days a week.
1-877-225-5266

Footnote 1 details. Applications and the amount you can borrow are subject to meeting BMO’s usual credit criteria.
Footnote 2 details. The combined line of credit limit under any prior mortgage and a Homeowner line of credit cannot exceed 65% of the value of your property.
Footnote 3 details. Conditions apply.
Footnote 4 details. Convenient access to funds, anytime, up to your credit limit through a branch or Line of Credit cheques. Applications and the amount you can borrow are subject to meeting BMO’s usual credit criteria.

Homeowner’s Line of Credit