Loans and Lines of Credit
To find the right borrowing option for you, it's helpful to think about:
Are you borrowing for a one-time purchase or an ongoing need?- Would you like to repay on a set schedule or do you need flexibility?
- Is there collateral (like your home) you could use?
Keep this in mind as we take a look at the options to help you make real financial progress.
Let's start with the different ways you can borrow
Lines of credit
A flexible way to borrow when you're not sure exactly how much you'll need.
Student borrowing
A student line of credit is an affordable, flexible way to cover tuition, rent and more.
Browse our featured options
For when you're ready to tap into your home's equity.
Why you'll like it:
- Access up to 65% of your home's value footnote 1 footnote 2
- Get a better interest rate and only pay interest on what you borrow
- Repay at your own pace
For when you're not sure how much you'll need or want an emergency fund.
Why you'll like it:
- Use it anytime you need access to cash, such as renovations or emergency fund footnote 1
- Repay at your own pace
- Pay interest only on what you borrow
Why you'll like it:
- Use it for virtually anything, such as a car or debt consolidation
- Set a payment plan that fits your budget footnote 1
- Enjoy a preferred interest rate when you use your home or another asset as collateral footnote 3
Want money without the wait?
BMO customers, apply in as little as 3 minutes from your smartphone for an unsecured line of credit of up to $25,000. footnote 1
F A Qs
When applying for a line of credit, you’ll want to do your research to understand the total costs, terms and conditions for your needs. Some things to have ready for your application include:
- Identification (ex. Passport, driver’s licence)
- Recent pay stubs
- Tax returns
- Credit report
- Other documents as needed (ex. Bank statements, bills of sale)
Once you’ve been approved for a line of credit, accessing it is easy. Similar to a credit card, you can borrow the amount that you need as you need it, until you hit your credit limit. Plus, you’ll only pay interest on the amount that you borrow. This is a great option for home renovations or any other expenses that don’t have a definitive cost just yet.
The main difference between a line of credit and a credit card is the way you use them. A credit card is intended for everyday use on an ongoing basis, while a line of credit comes with set periods for withdrawal and repayment.
With a credit card, you use your physical card or credit card number to make purchases. With a line of credit, you can use your borrowed funds by transferring money from your loan account directly into a chequing account. Also, the interest rates on lines of credit tend to be lower than credit cards.
For a personal loan, you generally know the exact amount you need to borrow up front. You’re charged interest as soon as you borrow it and you pay it off in fixed scheduled payments so that it’s paid within a set period. This is a great option when you want to consolidate other high interest debts like credit cards or for big ticket items like appliances.
A personal line of credit is a form of revolving credit that lets you borrow money when you need it, up to a predetermined amount. This is best for when you’re not sure of the specific amount you need in home renovation projects, you have an unexpected purchase or you need an emergency fund. Plus, interest is generally lower on lines of credit and you only pay interest on the amount borrowed.
You can check your balance on your account at any time if you’re signed up for Online or Mobile Banking. You’ll also receive statements (paper or electronic) for lines of credit if there is a balance owing. Alternatively, you can call the client centre or visit your branch to inquire about your balance.
What's the interest rate on my loan or line of credit?
You can see your effective interest rate on your statement, or you can give us a call or visit your local branch.
How can I calculate what my payments will be?
Payments for lines of credit are set at 2% of your outstanding balance or $50 (whichever is higher), or interest only.
For loans, a payment schedule is provided at the time that your loan is set up. Your lender will also be able to guide you through what your payments will look like.
Helpful lending tips and advice
Your must-have guide to applying for a loan
Thinking of getting a loan or line of credit? Here’s what you need to know before you apply.
How to improve your credit score
It may not always feel like you have the power to improve your credit score, but you can do it with the help of these tips.
How to get approved for a personal loan or line of credit
Looking to make a large purchase or consolidate debt? Increase your chances of getting approved.
Have more questions?
Find a branch
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- Footnote star details These calculations are approximate and for information purposes only. Actual payment amounts may differ and will be determined at the time of your application. Please do not rely solely on this information or result when making financial decisions; please visit your branch. Amortization can only be entered in full years (not months or partial years). Loan amount is rounded to the nearest $1,000.
- Footnote 1 details Applications and the amount you can borrow are subject to meeting BMO’s usual credit criteria.
- Footnote 2 details Security may be required as a part of BMO’s credit evaluation.
- Footnote 3 details Conditions apply.
- Footnote 4 details You may be eligible to defer equivalent to one month’s payment two times per calendar year (four weekly payments, two bi-weekly or semi-monthly payments, one monthly payment). You cannot skip two monthly payments (or the equivalent of two monthly payments) concurrently even if the two months are in different calendar years (January/December).
- Footnote 5 details The combined line of credit limit under any prior mortgage and a Home Equity Loan Plan cannot exceed 80% of the value of your property.
- Footnote 6 details Approval and credit limit are subject to meeting BMO's usual credit requirements. Must be a Canadian citizen or Permanent Resident enrolled in a Canadian or non-Canadian post-secondary school or university. Co-signer may be required. Subject to credit availability and verification of identity. Borrowing limits and repayment time are determined by the type of program.
- Footnote 7 details While you are attending the academic program identified in connection with your Student Line of Credit Agreement (the “Agreement”), your interest rate will only change with a change to the Prime Rate. After graduation, your interest rate may change in accordance with the terms of the Agreement.
- Footnote 8 details Approval and credit limit are subject to meeting BMO's usual credit requirements. Must be a Canadian citizen or permanent resident, or have an eligible co-signer who resides in Canada permanently. Must be enrolled in an accredited post-secondary institution. Co-signer may be required. Subject to credit availability and verification of identity. Continued access during residency is subject to the following limits: up to seven (7) years for Medical students and up to three (3) years for Dental students.
- Footnote 9 details Interest only payments include up to two years of Specialty studies for a BMO Dental Professional Student Line of Credit and a maximum of seven years of residency for a BMO Medical Student Line of Credit.