Looking for the Best HELOC Rates in Ontario?

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If you're a homeowner in Ontario and you're thinking about using your home equity to borrow money, a Home Equity Line of Credit—or HELOC—is one of the most flexible ways to do it. But not all HELOCs are created equal. Rates, requirements, and lender options can vary a lot depending on who you are and what your financial situation looks like.

Let's break down where to find the best HELOC rates in Ontario in 2025, what lenders look for, and how to qualify—even if your credit isn’t perfect.

HELOC Rates from Major Banks in Ontario

In 2025, the standard HELOC rate from a major bank is Prime + 0.50%. With the current prime rate sitting at 4.95%, that means your HELOC rate would be 5.45%. This is one of the most competitive rates available in Ontario—but only if you meet all the qualifications.

The big Canadian banks—like RBC, TD, Scotiabank, CIBC, and BMO—are often the first places people think to go when looking for a HELOC. These banks typically offer HELOCs to existing mortgage clients as an add-on product. So if your current mortgage is with one of these banks, you may already be pre-approved or eligible for a HELOC.

Qualifying for a HELOC with a major bank requires:

A strong credit score (usually 680 or higher)

A solid, provable income

A low debt-to-income ratio

If your credit score or income situation doesn’t meet the banks’ standards, you might need to look at alternative options.

HELOC Rates from B Lenders in Ontario

If you can't qualify with the major banks, the next step for many homeowners is to consider a B lender.

As of 2025, HELOC rates from B lenders start at around 7.49%, depending on your credit and how much equity you have in your home. The higher your loan-to-value (LTV) ratio, the more risk the lender takes on, and the higher your rate will be.

B lenders operate like the big banks, but they tend to be more flexible with borrowers who have slightly lower credit scores or income that’s harder to prove—like self-employment income.

B lenders offer what are called stand-alone HELOCs, meaning you can apply for a HELOC even if your mortgage is with a different lender. That makes them a good choice if you’re looking to access your equity without refinancing your entire mortgage.

Qualifying for a HELOC with B lenders:

They work with credit scores as low as 550 (but the higher, the better)

They accept non-traditional income verification (like bank statements)

They may not be available in every region—some smaller towns or rural areas may be excluded

If you don’t qualify for a bank HELOC, this can still be a solid and affordable option.

HELOC Rates from Private Lenders in Ontario

Private lenders are the most flexible option on the market when it comes to HELOCs, especially for borrowers who have bad credit, no income, or other financial challenges. These lenders care much more about the value of your property and how much equity you have than they do about your job or credit score.

Currently, HELOC rates from private lenders start at 9.44%. Private HELOCs are usually used as a short-term solution. They’re a good fit if:

You need access to money quickly

You’ve been turned down by banks and B lenders

You plan to sell or refinance your home in the next 12–24 months

Qualifying for a HELOC with private lenders:

Minimal credit score and income requirements

Focus is on loan-to-value ratio (usually up to 75%)

Available mostly in urban or suburban areas; harder to get in remote or rural locations

While private HELOCs have the highest rates, they’re often the only option for borrowers in tough situations. They can be a helpful bridge until you improve your credit, get back to work, or refinance into a better loan later on.

Are HELOC Rates Fixed or Variable in Canada?

If you’re comparing options, it’s important to know how HELOC interest rates work. In Canada, the type of lender often determines whether your rate will be fixed or variable.

Major banks: HELOCs are usually variable. Your rate will go up or down as the prime rate changes. For example, if your rate is Prime + 0.50%, and prime goes up by 0.25%, your HELOC rate will also increase by 0.25%.

B lenders and private lenders: HELOCs are usually fixed. Your rate stays the same for the term of the loan, which offers more predictability—especially in a rising rate environment.

Some borrowers prefer the stability of fixed rates, especially if they plan to hold the HELOC for a longer period. Others prefer variable rates because they can start lower, especially during periods when interest rates are falling.

How to Get the Best HELOC Rates in Ontario

Getting the best rate on a HELOC isn’t just about shopping around—although that helps. It’s also about presenting yourself well to lenders and working with someone who understands the full picture of your finances.

Here are a few ways to give yourself the best chance at a good rate:

Work with a mortgage broker: Brokers have access to more lenders and can help you compare rates and find the best fit for your situation.

Gather your documents early: Being prepared shows lenders you’re serious and helps the process move faster.

Be open to alternatives: If a bank doesn’t work out, don’t be discouraged. B lenders and private lenders can still offer competitive HELOC options.

Your broker will also arrange an appraisal from an approved appraiser. This is a key step in determining how much equity you can access and what rate you’ll be offered.

As a general rule of thumb, you will get a better HELOC rate with a lower loan-to-value ratio (the more equity you have available) and a higher credit score.

How Much Can You Borrow with a HELOC in Ontario

The amount you can borrow with a HELOC depends mostly on the value of your home and how much you still owe on your mortgage. This is called your loan-to-value ratio or LTV.

In Ontario, most lenders—whether banks, B lenders, or private lenders—will allow you to borrow up to 65%–80% of your home’s value, depending on the lender type and your financial situation.

Major Banks: Usually allow borrowing up to 65% of your home’s value using a HELOC. If combined with a mortgage, you may be able to access up to 80% total.

B Lenders: May allow up to 75%–80% of your home’s value, even on a stand-alone HELOC.

Private Lenders: Often go up to 75% LTV, and sometimes more, depending on the area and property type.

Example:

Your home is worth $700,000

You owe $300,000 on your mortgage

A lender might allow you to borrow up to 75% of $700,000 = $525,000

Subtract your existing mortgage ($300,000), and you could access up to $225,000 with a HELOC

Keep in mind that the less you borrow compared to your home’s value, the better your chances of getting a lower rate.

Get the Best HELOC Rates in Ontario Canada 2025

If you’re a homeowner with available equity, a HELOC is one of the most flexible ways to borrow. You only pay interest on what you use, and you can access funds again and again without reapplying. It’s great for:

Home renovations

Debt consolidation

Emergency funds

Tuition or large expenses

Just make sure you understand the rate you’re getting—and whether it’s fixed or variable. Also, ask your broker or lender about fees. Some HELOCs come with setup fees, appraisal costs, or early repayment penalties.