Fixed rate lock option with a HELOC
Take control of your finances with confidence and peace of mind. With our fixed rate lock option (FRLO), enjoy the perks of predictability and stability when you transfer some or all your balance to a fixed interest rate.
Get a fixed rate as low as 7.12% APR for up to 20 years. footnote 1
Apply online
How does it work?
Getting a fixed rate lock option for a Home Equity Line of Credit (HELOC) footnote 2 allows you to lock in a portion or all your balance at a fixed interest rate. Since this will remain the same for the duration of the loan, you’ll be protected against any market fluctuations that might affect rates.
As the fixed rate balance is paid down, the principal amount paid off becomes available for use again as part of the credit line.
What is the difference between a fixed-rate HELOC and fixed home equity loan?
Fixed-rate HELOC
Offers the flexibility to borrow funds as needed and make interest-only payments during your draw period- Once the draw period ends, you enter a repayment period where you make fixed payments to pay off the rest of the balance
- May have a fixed interest rate during the draw period and a variable rate during the repayment period
- May involve closing costs and fees, ongoing maintenance fees, and early termination fees footnote 3
- Unlock your rate and switch over to a variable rate HELOC anytime you want footnote 4
Fixed-rate HELOAN
- Borrow a lump sum of money once
- Repay it over a set term with fixed monthly payments
- Enjoy a fixed interest rate that stays the same throughout the life of the loan
- Only has closing costs and fees footnote 3
Why you’ll like it
Flexibility you can count on
Use as little or as much of your line of credit as you need, when you need.
Consolidate your debt footnote 5
Lower monthly payments for other loans like credit card debt or student loans by consolidating them into one monthly payment.
Security for unexpected expenses
When life happens, get peace of mind knowing that your home’s equity could help in the event of an unexpected expense, like major home repairs.
Predictable monthly payments footnote 1
Never worry about how rising interest rates may impact your monthly payments with a fixed rate.
Here are a few things you can do with your HELOC
Home renovations
Consolidate debt
Build an emergency fund
Investments
Cover education expenses
Make big purchases
I’m in! What do I need to apply?
Whether you’re applying in-person, online or by phone, applying is fast, safe and easy! You’ll need:
- Employment and current income information
- Property information and requested loan amount
- Positive credit score (typically a minimum of 650 to 680)
- Equity in your home to borrow against
Download our HELOC application guide & checklist (PDF, 130 KB)
Helpful resources
What is a line of credit?
Learn more about lines of credit, how they work and if one might be the right option for you.
What is a HELOC?
Learn how it works and how you can make the most of it.
Consolidating debt with a home equity line of credit
Learn how to use a home equity line of credit to consolidate debt.
Frequently asked questions
The qualification process is similar to what we follow when approving you for a traditional HELOC. footnote 2 We look at several criteria within your application, which includes:
- Credit history
- Income
- Your home’s value
- Your home’s equity
- Any debt or financial obligations
The equity you can borrow also depends on how much of your mortgage you have left to pay compared to the value of your home.
After you submit your application, we’ll work with you for any additional documentation we may require. The full application process typically takes about 30 days. You can expedite the process by getting all of your documentation to us as quickly as possible. If your line of credit is approved, you’ll receive a commitment letter. Then we’ll work with you to schedule your closing and soon after, you’ll receive access to your funds.
If you need a smaller loan amount or access to funds sooner, a personal line of credit might be right for you. If you need to build your credit rating, you might try our Credit Builder Program, or access resources to improve your financial wellness from our partner, SpringFour.
There are no upfront costs to apply for a fixed-rate HELOC, and we pay many of your closing costs. There is a $75 annual fee on your first monthly statement and each year after through the ninth anniversary of loan opening. footnote 2 If you close your account within 36 months, a closing cost recoupment fee may be charged to recover the closing costs we paid on your behalf. footnote 3
If you are approved, your loan funds will be accessible following a required waiting period of 3 business days from closing. After that, it’s easy to access your funds. You can transfer funds from your loan account to a checking account through mobile, online, by phone, at a branch or by checks that we will send you. You’ll receive a welcome package by mail that contains your access checks within 7 to 10 business days after closing.
You can choose the payment method that is most convenient for you. You can set up Auto Pay to establish monthly automatic payments from any BMO Checking account. When you do this during the application process you will receive a 0.25% interest rate discount. footnote 6
You may also pay online, by mail, or when you visit a branch. You can make higher payments to pay down the principal at any time without incurring fees. For all the details, visit Ways to Bank.
We’ve made it easier than ever to apply for a fixed-rate HELOC, and you can now apply and close online, footnote 7 with no need for a branch visit. Applying online is fast, easy and secure. With our new remote closing option, you can manage the full process online, without ever leaving the comfort of your home.
Apply online for a HELOC today.
Converting to a fixed-rate HELOC allows you to have better control of your budgeting and better financial stability with predictable, monthly payments. footnote 1 With a fixed interest rate, you won’t have to worry about any market fluctuations affecting your payments. Converting may come with closing costs and fees, so you’ll want to factor these expenses into your decision. footnote 3
Take the next step toward achieving your goal
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- Footnote 1 details Special offers are subject to change. This offer does not apply to any loan that will be used to purchase the subject property.Fixed Rate Lock OptionThe fixed rate lock option offer is available on new applications received on or before . For new applications, the fixed rate lock option for a $100,000 lock at a -year term includes a interest rate adjustment based on a first lien loan, $100,000 line of credit. If you borrow $100,000 with a APR for a year term assuming a 70% combined loan to value ratio you will make principal and interest payments of approximately each. Your monthly payment amount may differ from this example based on your actual loan amount and repayment terms. Interest rate adjustments vary by term, lock amount and lien position. APRs for a fixed rate lock option on ranged from APR to APR for a well qualified borrower in first lien position with Auto Pay. APRs vary and will depend on the fixed rate index value at the time a fixed rate lock option is requested as well as individual borrower qualifications. The offer may apply to a 5, 10, 15, 20 or 30-year term. To receive a Auto Pay rate discount, you must authorize BMO at origination to withdraw your home equity line of credit payment each month from an eligible BMO Checking account (Auto Pay). The discount can only be applied to a new Home Equity Line of Credit.Fixed Rate Lock Option InformationThe minimum line of credit withdrawn from a home equity line of credit (HELOC) that can be converted to a fixed rate loan is $2,000 and the maximum that can be converted is 100% of the line amount. The minimum term is 5 years and the maximum loan term is 30 years. 30-year term only available at time of origination. No more than three fixed rate lock options may be open at one time. A $75 fee applies each time you convert a fixed rate lock option after the date of origination. Minimum payment due on a fixed rate lock option includes principal and interest in fixed monthly payments. As the fixed-rate balance is paid down during the draw period, funds are replenished and available for use at the variable rate during the draw period.
- Footnote 2 details Relationship Requirement: If the property is not located in the following locations; AZ, CA, CO, FL, ID, IL, IN, IA, KS, MN, MO, NE, NV, NM, ND, OK, OR, SD, UT, WA, WI, WY, and EL Paso County, TX (Home Equity is not available in Texas) to be eligible for our real estate secured lending products, you must be a pre-existing BMO customer for at least six months at the time of application; contact a Banker for details. A BMO customer relationship includes any deposit, retirement, small business, secured and unsecured credit, and investment accounts (BMO Alto account are excluded). Not applicable to our Private Bank clients or BMO employees.
- Footnote 3 details Closing Costs and Fee Information: BMO will pay closing costs for loans secured by an owner-occupied 1 to 4 family residence. Closing costs include appraisal charges, credit report, flood determination, title insurance, document recording fees, and mortgage and government taxes. You will be assessed a $75 annual fee on your first monthly billing statement. Thereafter, this $75 fee will be assessed annually on the anniversary of your closing date through the ninth anniversary of your loan opening. A fee waiver may be available based on your relationship balances, contact your banker for details. You may also be required to pay real estate taxes and items such as prior lien release fees. If the line amount is greater than $500,000, you are responsible for mortgage and government taxes as well as title fees in AL, AR, CT, FL, KS, HI, ID, MN, MS, NJ, NM, OK, PA, TN and DC. If you close your account within 36 months, a closing cost recoupment fee may be charged to recover the closing costs we paid on your behalf.Insurance Information: You must obtain property insurance and may be required to obtain flood insurance.
- Footnote 4 details Special offers are subject to changeVariable Introductory Rate Offer InformationThe variable introductory rate offer is available on new applications received from 2/2/2026 through 4/30/2026. The introductory rate is variable during the introductory period. No customer or other discounts are available during the variable rate introductory period. The 6-month introductory rate of 5.24% APR will change with Prime and is calculated by subtracting 1.51% from the then-current Prime Rate on a line of credit. Rates are for illustrative purposes only and are subject to change without notice.Variable Rate Information For a Home Equity Line of Credit, the annual percentage rate (APR) is a variable rate based on The Wall Street Journal® Prime Rate on plus a margin that varies depending on the state in which property is located, individual credit qualifications, credit limit amount, loan to value ratio and other criteria. Rates shown are for first lien lines of credit of $100,000 secured by an owner occupied 1 to 4 family residence, in Illinois, with a loan-to-value (LTV) of 70% or less, and a FICO credit score of 780+ and a 0.25% Auto Pay Discount. As of rates vary from APR to APR depending on property state, loan amount and other variables. Please consult a banker for pricing in your region. Your APR will never be lower than the floor rate in the credit agreement, or exceed 18.00% APR or the maximum APR permitted by law, whichever is less.
- Footnote 5 details Please consult with your financial advisor for the benefits and drawbacks between unsecured debt and secured debt and the protections each provide the consumer.
- Footnote 6 details Auto Pay Rate DiscountTo receive a 0.25% rate discount, you must authorize BMO at origination to withdraw your Home Equity Line of Credit payment each month from a BMO personal checking account using Auto Pay. The discount can only be applied to a new Home Equity Line of Credit.
- Footnote 7 details Not all transactions are eligible for a remote closing. Your BMO representative will inform you of the closing options available to you.The Secure and Fair Enforcement (S.A.F.E.) for Mortgage Licensing Act protects consumer. This nationwide licensing and registration system provides accurate, accessible information about lenders and their employees.