Today’s Home Equity Line Of Credit Rates updated as of May 12, 2025 11:31 am
Home Equity Line Of Credit Rates Start From*
*Other conditions apply. Rate in effect as of today.
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home’s equity. It allows homeowners to borrow money as needed, up to a pre-approved limit, with flexible repayment terms. Unlike a traditional mortgage, you only pay interest on the amount you use, making it a versatile financial tool for various needs.
You can apply for a HELOC through your current mortgage provider to request your home equity loan. Once approved, the lender sets a credit limit and provides the loan in a lump sum you can access as you need it. Like a mortgage, the amount is available with a variable or fixed interest rate over an agreed-upon term. Regular payments are made on your mortgage and loan at the same time.
Although it provides an opportunity to access the equity in your home, it is essential to remember that if you default on your payments, the lender can seize and sell your home. Despite this, many homeowners prefer this loan option as they get better interest rates than other credit options, especially credit cards. Although higher than mortgage rates, the interest rates offered still allow them to save money in the long run.
There are two types of HELOCs:
1. Home equity line of credit combined with a mortgage
This HELOC is also known as a readvanceable mortgage, combining a revolving HELOC with a fixed-term mortgage. Most lenders only expect you to pay the interest owed on your HELOC portion’s balance, making it easier to manage your fixed-term mortgage payments. Credit limits are based on a maximum of 65% of your home’s purchase price or market value. As you pay down your mortgage principle, your credit line limit increases.
2. Stand-alone home equity line of credit
A stand-alone HELOC is a revolving credit line using your home as a guarantee that you will repay the loan. It is not tied to your mortgage, and therefore you can apply for a stand-alone HELOC with any lender offering this type of loan product. Credit limits are based on the maximum 65% of your home’s market value. However, you can’t borrow more as you pay down your principal, as the amount borrowed is based on how much equity you have in your home when you apply.
HELOCs are based on your home’s current market value multiplied by 80% minus your mortgage balance. However, the amount available is limited to 65% of the value of your home.
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The maximum credit limit on a HELOC is 65% of your home’s purchase price or market value.
HELOCs are based on the equity available in your home, with a loan available up to 65% of your home’s value. Stand-alone HELOCs do not impact your mortgage. On the other hand, mortgage refinancing renegotiates your current mortgage contract amount, terms, interest rate, type, and amortization period.
As a result, it impacts your mortgage payments. Refinancing is beneficial if interest rates drop or your current monthly payments can be reduced through refinancing. However, refinancing allows you to borrow extra money against your home’s equity and roll that loan into your mortgage payments. It also allows you to access more home equity for up to 80% of your home’s market value compared to 65% with HELOCs.
Pros of HELOC
Cons of HELOC
Get Approved today and use your equity in your home to get a secured line of credit or what is also called a HELOC! With a Home Equity Line of Credit or HELOC, equity can be released to be used for any purpose and is usually a minimum interest-only payment option.
A HELOC is attached to a chequing account and simple to use. You can access these funds through direct payment purchases using your debit card, by writing cheques, or through cash withdrawals. You will receive monthly statements, allowing easy management of your finances. Your account can also be linked to the telephone banking service, ensuring your account information is always only a phone call away.
Each month you’ll receive monthly bills indicating the minimum payment required based on your principal balance and interest. The amounts owed change as you access more of your available credit and/or pay down more of the principal.
Lenders prefer homeowners to have a credit score of at least 620. The higher your credit score, the more lenders will be willing to offer up to your 65% maximum. Along with your credit score, you should also have a total loan-to-value ratio of 80% or less, as well as a low debt-to-income ratio.
Your credit limit is based on a maximum of 65% of your home’s purchase price or market value.
Yes, you can choose to pay off the entire balance at any time without penalties.
A home equity loan provides your loan in a lump sum payment with a fixed interest rate while a HELOC sets an available credit limit you can draw from when needed.
Closing a HELOC only hurts your credit score if it decreases how much credit you have. If you have other credit available, the effects are minimal.
| Feature | HELOC | Traditional Mortgage |
|---|---|---|
| Interest Rate | Variable, tied to the prime rate | Fixed or variable |
| Borrowing Amount | Flexible, up to a credit limit | Fixed loan amount |
| Repayment Terms | Pay interest-only during draw period | Monthly payments include principal and interest |
| Flexibility | High; borrow and repay as needed | Low; fixed payment schedule |
When applying for a HELOC, there are some costs to consider:
We compare mortgage rates from top lenders, including BMO mortgage rates, CIBC mortgage rates, RBC mortgage rates, TD Bank Mortgage Rates, and MCAP mortgage rates, alongside our exclusive Citadel Smart Home Plan mortgage rates. Let us simplify the process and help you secure approval quickly and stress-free!
A Home Equity Line of Credit offers unparalleled flexibility and can be a powerful financial tool when managed responsibly. At Citadel Mortgages, we guide you through every step, from understanding your options to securing the best HELOC solution for your needs.
At Citadel Mortgages, we specialize in helping Canadians navigate the complexities of mortgage rates and terms. Whether you’re looking for a 6-month fixed rate, a 5-year variable, or something in between, our team is here to provide personalized guidance and access to the best rates in Canada.
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Citadel Mortgages operates an information-based website designed to display mortgage rates from its trusted partners. While we strive to present accurate and up-to-date information, we cannot guarantee the precision of the rates or other details provided at all times. Citadel Mortgages assumes no liability for errors, inaccuracies, or damages resulting from the use of the information on this site. Terms and conditions apply, and it is essential to consult directly with a licensed mortgage broker for personalized advice and accurate details about specific products and services. Please note that the rates displayed are for informational purposes only and may differ from actual rates offered.
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All approvals are subject to credit and underwriting approval. Not all borrowers will qualify for conventional or equity financing. The receipt of an application does not constitute a financing approval or guarantee of an interest rate. Restrictions apply. The Annual Percentage Rate (APR) is subject to underwriting and approval, and fees and terms may vary. Contact us for the most current rates and further information about specific products. OAC (On Approved Credit).
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