Looking for the Best HELOC Lenders in Ontario?

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Home Equity Lines of Credit (HELOCs) are popular among Ontario homeowners looking to access equity for renovations, debt consolidation, investments, or financial flexibility. While Canada's major banks offer similar HELOC products—typically allowing borrowing up to 65% of a home's value—there are meaningful differences worth noting.

HELOCs from Major Banks for Ontario Homeowners

A crucial factor with major banks (TD, RBC, Scotiabank, BMO, CIBC, National Bank) is that they typically offer HELOC products only to homeowners who already have a first mortgage or intend to hold their primary mortgage with that institution. If your mortgage is elsewhere, these banks often require you to switch your mortgage to qualify for their HELOC.

Key Similarities Across Major Banks

Competitive Rates: Usually around Prime + 0.50%.

No Annual Fees: Except National Bank, which charges a small monthly fee

Variable Rate, Revolving Access: Interest-only payments possible, allowing financial flexibility.

Grouping Major Banks by Product Style

To simplify the comparison, Ontario's major banks fall broadly into two categories: "Flexible and Comprehensive" vs. "Simple and Convenient."

1. Flexible and Comprehensive: Scotia STEP & RBC Homeline

Scotiabank STEP (Total Equity Plan) and RBC Homeline Plan provide the greatest flexibility. Both let homeowners combine multiple products (fixed or variable mortgages, HELOC, secured loans) into one manageable borrowing limit.

Ideal if you frequently access equity or have evolving financial needs, as these products simplify borrowing and repayment, providing continuous access to equity as you pay down your mortgage.

2. Simple and Convenient: TD, BMO, CIBC

TD Home Equity FlexLine, BMO Homeowner ReadiLine, and CIBC Home Power Plan focus on simplicity, integrating seamlessly with your existing mortgage.

These products are straightforward, easy to manage, and suitable for homeowners who prefer simplicity over multiple borrowing segments.

Special Mention: National Bank All-in-One

National Bank’s unique offering combines your mortgage, HELOC, and regular banking into one account.

It charges a modest monthly fee (~$7, often waived) but provides convenience by centralizing your banking and borrowing.

Stand-Alone HELOCs for Ontario Homeowners

Ontario homeowners often face difficulties when applying for a Home Equity Line of Credit (HELOC) at the bank holding their primary mortgage. Major banks typically require credit scores of at least 680 and limit debt servicing ratios (GDS/TDS) to 39%/44%, disqualifying many borrowers.

That's where stand-alone HELOCs from non-prime ("B-lender") institutions like Home Trust, Community Trust, and First National become valuable. These lenders offer HELOCs without requiring homeowners to move their existing first mortgage, accepting lower credit scores (~550 and above) and more flexible debt servicing ratios (up to 50%/50% or even 60%/60%).

Here’s how these lenders compare, including how homeowners can conveniently access their HELOC funds:

Home Trust HELOC Qualifications

Home Trust has an excellent HELOC product that is ideal for homeowners who prefer traditional access methods like physical cards and cheques, combined with strong flexibility in borrowing criteria.

Maximum Loan-to-Value (LTV): Up to 65% as a HELOC, total combined lending can reach 80%.

Credit Requirements: Minimum ~500

Debt Ratios: Allows up to 60%/60% GDS/TDS.

How to access funds with the Home Trust HELOC:

Visa Credit Card: Home Trust provides a physical Visa credit card, enabling convenient purchases and immediate access to funds wherever Visa is accepted.

Convenience Cheques: Physical cheques provided to easily pay larger expenses or transfer funds.

First National (Excalibur) HELOC Qualifications

First National Bank has a similar product for borrowers comfortable accessing their equity primarily via credit card, with an emphasis on equity-based flexibility and higher debt ratio allowances.

Maximum Loan-to-Value (LTV): 65% for HELOC; total lending (including existing mortgage) up to 80%.

Credit Requirements: Minimum 580

Debt Ratios: Allows up to 50%/50% GDS/TDS

How to access funds with the First National HELOC

Mastercard Credit Card: First National provides a Mastercard-branded credit card for straightforward, everyday access.

Physical Cheques: Currently not offered, though First National has indicated the potential to introduce this feature in the near future.

Community Trust HELOC

Community Trust's HELOC is more suitable for borrowers who value direct and personalized interactions, prefer simplicity over managing physical cards or cheques, and appreciate streamlined fund management via direct communication.

Maximum Loan-to-Value (LTV): Up to 65%, combined lending usually capped at 80%.

Credit Requirements: Minimum ~500

Debt Ratios: Typically up to 50%/50% GDS/TDS, allows up to 60%/60% if LTV < 65%

Interest Rates: Prime +3% (1st) and Prime + 4% (2nd)

How to access funds with the Community Trust HELOC

Request via Email or Phone: No physical credit cards or cheques. Instead, homeowners can quickly request draws or transfers directly by contacting Community Trust via email or phone call, offering personalized and efficient access to equity.

Banks With the Best HELOC Rates in Ontario

When considering a Home Equity Line of Credit (HELOC), major Canadian banks usually provide the lowest rates—but there's a catch: these attractive rates apply primarily if your HELOC is in the first mortgage position and your credit and debt profile meet stringent criteria.

Why Major Banks Offer the Lowest HELOC Rates

Canada’s big banks—TD, RBC, Scotiabank, BMO, CIBC, and National Bank—can afford to offer lower HELOC rates because their strict lending criteria significantly reduce lending risk. They typically require borrowers to have a strong credit profile (minimum score of 680) and conservative debt servicing ratios (GDS/TDS up to 39%/44%). These guidelines help the banks offer highly attractive rates, often at just Prime +0.50%, which currently puts the lowest Ontario HELOC rates at around 5.45% (Prime = 4.95% as of March 2025).

But what happens if your existing mortgage isn't with a major bank, or if you don't meet their stringent qualification criteria? You will need to get a stand-alone HELOC in 2nd position from a non-prime lender.

Ontario HELOC Rates From Non-Prime Lenders

If your first mortgage is already at a major bank and you meet their criteria, their competitive rates offer clear value. But if your mortgage is elsewhere or your financial situation doesn't align with bank requirements, alternative lenders such as Home Trust, Community Trust, and First National can offer flexible second-position (stand-alone) HELOCs—though at slightly higher rates.

Here's a clear breakdown to help you easily compare these three popular non-prime lenders:

Home Trust HELOC Rates: Currently start at 7.49%

Home Trust offers second-position HELOC rates starting at 7.49%. Your exact interest rate is determined based on your credit score and loan-to-value ratio, which reflects the amount of equity you currently have in your home. Home Trust HELOC is an excellent solution for homeowners with an existing mortgage, bruised credit or non-traditional income sources, and want convenient access to funds through Visa credit cards and convenience cheques.

First National HELOC Rates: Currently starts at P+3.25% (8.20%)

First National offers a very similar second-position HELOC rates starting at Prime +3.25%, which are variable. Your specific rate depends on your credit score and loan-to-value ratio. First National HELOC is ideal for homeowners with existing mortgages, lower credit scores, or higher debt loads. Funds are conveniently accessible through a Mastercard credit card, although convenience cheques are not currently available.

Community Trust HELOC Rates: P+3% (1st) and P+4% (2nd)

Community Trust offers first-position HELOC rates starting at Prime +3.00% and second-position rates starting at Prime +4.00%. The specific rate you're offered depends on your credit score and loan-to-value ratio. Community Trust is well-suited for borrowers who have recently faced financial challenges or have lower credit scores (mid-500s). Their strengths include fast approvals and personalized access to funds through simple phone or email requests, ideal for quick, personalized communication.

How to Apply for the Best HELOCs in Ontario

When applying for a Home Equity Line of Credit (HELOC) in Ontario, many homeowners instinctively approach their primary bank. However, this approach often overlooks better, more flexible options. Instead, partnering with an experienced mortgage broker can significantly improve your borrowing experience, increasing your chances of approval and ensuring you secure the best possible HELOC for your needs.

Matching You with the Most Suitable Product

Mortgage brokers have extensive knowledge about a wide variety of lenders, including major banks, credit unions, and alternative lenders like Home Trust, First National, and Community Trust. They can quickly assess your financial situation—such as your credit score, debt obligations, income type, and home equity—to determine which HELOC product is most suitable.

Saves Time: Avoid spending hours researching lenders and comparing products.

Tailored Recommendations: Brokers quickly match your unique financial profile to the right HELOC.

Better Chances of Qualifying

Banks typically have strict lending requirements (high credit scores and lower debt ratios), and many homeowners get turned away unnecessarily. Mortgage brokers, however, have relationships with lenders who specialize in non-traditional borrowers, making it easier to qualify even if:

Your credit score isn’t perfect.

You carry higher amounts of debt.

Your income is unconventional (self-employed, commission-based, or seasonal).

Working with a broker dramatically improves your odds of approval by tapping into a broader, more accommodating lending network.

Brokers Can Get Preferred Rates

Mortgage brokers regularly provide lenders with high volumes of business. Because of these close relationships, brokers can secure preferred rates and terms that are often unavailable to homeowners applying independently. This means you get more favorable borrowing conditions without having to negotiate yourself.

Cost Savings: Brokers often secure discounted rates, saving you money.

Better Terms: Improved repayment conditions and flexibility that align with your needs.

Using a mortgage broker simplifies the HELOC application process, maximizes your chances of approval, and helps ensure you receive the best possible rates and terms. If you’re serious about finding the ideal HELOC product in Ontario, partnering with a mortgage broker is a smart and efficient choice.

Easiest Bank to Get a HELOC From in Ontario

If you're considering a Home Equity Line of Credit (HELOC), you might already know that qualifying at major banks can be tough. Banks like TD or RBC usually require strong credit scores (at least 680) and strict debt-to-income ratios, meaning they allow less of your monthly income to qualify. But what if your finances aren't perfect, or you're carrying higher levels of debt?

That's when lenders like Home Trust, First National, and Community Trust become important alternatives. They offer HELOC products specifically designed for borrowers who might not fit within the tight requirements of major banks.

Easiest HELOC to Qualify for: Home Trust HELOC

Among these options, Home Trust is typically the easiest to qualify for. The reason comes down to flexibility—especially regarding your debt-to-income ratios. While First National and Community Trust generally accept ratios up to about 50%, Home Trust goes even further, often approving borrowers whose debt payments take up as much as 60% of their monthly income. In other words, they’re willing to lend even if a larger portion of your income is already committed to existing debt. This makes them a practical choice if you're carrying high debt loads or have a lower income.

Home Trust also has more forgiving credit requirements. If your credit score isn't perfect—say it's around the mid-500s due to past credit issues, late payments, or other financial bumps—Home Trust will still give your application fair consideration. Other lenders can sometimes offer flexibility too, but Home Trust combines generous debt ratio allowances with flexible credit standards more consistently.

In addition, Home Trust offers a convenient way to access your money through a physical Visa credit card and convenience cheques, making it easy for homeowners to use their HELOC funds when and how they need them. This can be especially appealing if you prefer traditional methods over digital transfers or phone requests, which Community Trust requires.

Bottom line: if you're looking for the easiest HELOC approval in Ontario—especially if your financial situation isn't ideal—Home Trust stands out as your best option. Their higher debt ratio limits, credit flexibility, and straightforward access methods make them uniquely suited to homeowners who need a lender willing to look at the bigger financial picture, rather than just rigid guidelines.

The Best Ontario HELOC Lenders & Rates 2025

Choosing the right Home Equity Line of Credit (HELOC) lender in Ontario depends largely on your financial situation and priorities. Generally, major Canadian banks such as TD, RBC, Scotiabank, BMO, CIBC, and National Bank offer the lowest rates—typically around Prime +0.50%, currently about 7.70% to 8.20%. However, these attractive rates come with strict qualification requirements: borrowers must have high credit scores (680+) and conservative debt-to-income ratios (39%/44%), and usually need their primary mortgage with that bank.

For homeowners who don't meet these rigid standards or prefer not to move their primary mortgage, alternative lenders such as Home Trust, Community Trust, and First National offer excellent stand-alone HELOC options. Although their rates are slightly higher—usually between Prime +1.50% and Prime +3.00% (around 8.70% to 10.20%)—they accept lower credit scores and allow significantly higher debt-to-income ratios, sometimes up to 60%.

Among these non-prime lenders, Home Trust typically stands out as the easiest to qualify with due to their flexible approval criteria and generous debt-ratio allowances. Community Trust also provides accessible approvals, prioritizing fast and personalized communication through email and phone, while First National offers competitive rates and high flexibility on debt ratios, making it a strong choice if you have substantial existing obligations.

Ultimately, the best HELOC lender and rate for you depends on your credit profile, debt levels, and mortgage situation. Major banks are ideal if you qualify, while alternative lenders like Home Trust, Community Trust, or First National provide strong options for homeowners seeking flexibility, easier qualification, and the convenience of a stand-alone HELOC. Consulting with a mortgage broker can help simplify your choice, ensuring you find the best possible HELOC solution.