Lines of credit
Here’s how they work:
Apply once for access to a specific amount of money and then borrow any amount, within your approved limit, at any time footnote 1 - Only pay interest on what you borrow
- Continue to borrow from your line of credit as you need it
Tip: You can get a preferred interest rate when you secure your line of credit with a personal asset. footnote 2
What can I use a line of credit for?
Home improvements
Did your plans for some new appliances turn into a whole new kitchen? A line of credit gives you flexibility to handle the extra costs and surprises of renovations.
Emergency fund
The unexpected can happen any time, from car repairs to healthcare. Knowing you can tap into your line of credit to cover sudden expenses gives you one less thing to worry about.
Wedding
Planning for the big day can take over a year – and a lot can change over a year. Easily handle additional guests, menu requests and all the extras with a line of credit. Congratulations!
Browse your line of credit options
You can access cash whenever you need it. Only pay interest on what you borrow, plus you can make payments at your own pace.
The details:
- Starts at $2,000 footnote 1
- Low minimum payments of 2% of outstanding balance or $50 (whichever is greater)
- If you're a BMO customer, you can apply online
Great for: Virtually anything you need
Tap into your home’s equity to lower your borrowing costs. You can access up to 65% of your home’s value. footnote 3
The details:
- Starts at $5,000 footnote 1
- Low minimum payments of interest only
- If you have a BMO chequing account, easily access your money with online or mobile banking
Great for: Larger projects such as home renovations
It’s a mortgage and line of credit rolled into one. If you’re buying or refinancing a home — and need to do some shopping and renovations — this one’s for you.
The details:
- Starts at $5,000 footnote 1
- Borrow up to 80% of your home’s value footnote 4
- As you pay down the mortgage portion, you can assess more from the line of credit footnote 4
Great for: Buying a property with plans to renovate
Top up your annual RRSP contribution with this ongoing revolving loan. Apply once and use as much as you need each year.
The details:
- Starts at $1,000 footnote 1
- Credit limits of up to the annual government limit footnote 1
- Interest rate is lower than other loans and lines of credit
Great for: Investing in your retirement and maximizing the tax benefits year after year
Access your line of credit anytime, anywhere
With our mobile banking app, you can quickly check your balance, plus transfer money whenever you need to.
Lines of credit Frequently asked questions
Interest is calculated on your daily balance and charged monthly to your account.
Yes, they can – and it’s good to keep this in mind. For lines of credit, your interest rate is a variable interest rate and will change without advance notice whenever BMO's Prime Rate changes or otherwise with notice in accordance with the terms of your Student Line of Credit agreement.
The BMO Prime Rate – also known as the prime lending rate – is the annual rate we use to set variable interest rates for our loans, lines of credit and mortgages. The actual rate you’ll get on your loan or line of credit is based on many factors in addition to the Prime Rate. These include how much you’re borrowing, your credit history and if you’re using collateral. You can see our current Prime Rate here.
Good question. Your credit history shows us how well you’ve handled debt and repayments in the past, so we check it carefully when reviewing your credit application.
- You can get a copy of your credit history from:
Nope. While both can help you get a loan, there are different roles and responsibilities for each:
A co-borrower is a person who applies for a loan with you. Their income, credit score, etc. is taken into consideration, just as yours is. And both of you are responsible for paying back the loan. Think of them as your loan partner.
A co-signer isn’t your partner but your backup. It’s not expected they make any regular payments on your loan. Their role is to take over your loan repayments in case you can’t keep up with the responsibility.
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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Come talk to us
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Call us
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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 part of BMO’s credit evaluation.
Footnote 3 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 4 details Any amount you borrow under a Homeowner ReadiLine in excess of 65% of the value of your property must be in an amortizing instalment. The Homeowner ReadiLine must be in first priority on your property.