Home Equity Line of Credit
Make the most of the equity in your home. You can use it to get the money you need to start your debt consolidation footnote 2, a home renovation or cover anything you could use extra money for.
What is home equity line of credit?
A home equity line of credit, or HELOC is a line of credit that lets you borrow money based on the equity you’ve built in your home. You can access the money all at once or use smaller amounts whenever you need it.
How it works: If your home is worth $400,000 and you owe $250,000 on your mortgage, you have $150,000 in equity. If you get a HELOC, you might be eligible to get a credit line based on a percentage of that $150,000.
Why HELOC is a great choice for you
Unlock financial flexibility with low rates and smart repayment options.
Low rates
Take advantage of lower rates than most other loan types, plus enjoy minimal to no closing costs footnote 3 with a BMO HELOC.
The flexibility you need
Only pay interest on the money you borrow. Choose the flexibility of interest-only variable rate payments, or lock in some or all of your balance for a predictable monthly payment. footnote 4
Borrow again and again
When you pay down your credit line, that money becomes available to borrow again during the 10-year draw period. At the end, any remaining balance can be repaid over a 20-year term.
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HELOC vs. HELOAN
Unlock financial flexibility with low rates and smart repayment options.
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) footnote 5 gives you access to funds based on the equity in your home, with the flexibility to borrow as much or as little as you need, when you need it.
Maximum flexibility: Access funds anytime, online or in person - Borrow as needed: Draw smaller amounts or all at once
- Interest-only payments during draw period
- Variable interest rate
- Best for ongoing or unexpected expenses
A home equity loan (HELOAN) footnote 5 lets you borrow a lump sum of money based on the equity you’ve built in your home. You repay the loan in fixed monthly installments over a set term, making it a predictable option for budgeting.
- Set monthly payments: Predictable repayment schedule
- One-time lump sum for big expenses
- Fixed interest rate
- Best for home renovations or debt consolidation footnote 2
What can you do with your HELOC
Use your HELOC for what matters the most.
- Consolidate your debt footnote 2
- Renovate your home
- Unexpected expenses
- Invest
- Pay for education expenses
- Make a big purchase
Whether you’re planning ahead or responding to the unexpected, your HELOC gives you the freedom to access funds when you need them, on your own terms.
Fixed rate lock option with a HELOC
With BMO’s Fixed Rate Lock Option (FRLO) footnote 4, you can convert part of or all of your HELOC balance to a fixed interest rate for a set term. This will allow you to enjoy the perks of predictable payments.
- Get protection from rising rates
- Choose from 5, 10, 15, 20, or 30 year term options.
- Unlock your rate and switch over to a variable rate HELOC anytime you want footnote 1.
HELOC Calculators
Find out how much equity you have available in your home.
HELOC Calculator
Calculate how much of a line of credit you can expect based on your home’s equity with the HELOC Calculator footnote 6.
Line of Credit Calculator
Determine your payments based on your loan amount and repayment period.
Debt Consolidation Calculator
Enter your existing loans’ details and find out how much you can save by consolidating your debt.
Helpful resources
Explore expert insights and practical tips to navigate your homeownership journey.
Remote Online Notary Closing
Watch our short demo to learn about BMOs Remote Online Notary closing method. footnote 7
What is a HELOC?
Everything you want to know about a HELOC, from how it’s calculated, to the rates, repayment options, benefits and considerations.
Consolidating debt with HELOC
Tap into the equity in your home to potentially consolidate your debt footnote 2 and save money over time.
Personal Line of Credit
Need extra funds but don’t want to use the equity in your home? A personal line of credit gives you flexible access.
FAQs
If you have equity in your home, you can borrow money by using that equity as collateral. For the first 10 years, known as the initial draw period, your payments will be interest-only and only based on what you have borrowed. As you pay down your balance, the funds become available for use again. After that it is the repayment period, and your payments will include both principal and interest, and may be higher than during the first phase.
HELOCs are issued at a variable rate of interest, which means that your interest rate can change over the life of your line. While your rate can change, there is a cap on how much the interest rate can change each time, as well as a lifetime cap on how much the rate can change during the life of your loan.
You can also lock in all or part of your HELOC at any time during the draw period for a rate and payment that will not change footnote 4. See more details in the question about our Fixed Rate Lock Option.
We look at several criteria within your application, including your credit history, income, other debt or financial obligations, the amount requested, and the equity you have in your home. 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 Loan Program, or access resources to improve your financial wellness from our partner SpringFour.
There are no up front costs to apply for a 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. 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.
You can lock in a fixed rate on some or all of your HELOC with a fixed rate lock option (FRLO) at any time during the draw period to pay down your balance with payments that will not change footnote 4. Your rate will be locked in for the amount of time you choose, with terms ranging from 5 to 30 footnote star years. As the fixed rate balance is paid down, the principal amount paid off becomes available for use again as part of the credit line.
You can lock in up to 3 advances at a time. There is no fee if you lock your rate at closing, but there is a $75 fee for each lock you place thereafter. If you change your mind at any time, you can always go back to a variable rate HELOC without having to refinance.
footnote star30-year term only available at time of origination
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 7-10 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 an interest rate discount footnote 8.
You may also make a one-time payment, pay online, by mail, or when you visit a branch. You can send 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 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 remote closing option, you can manage the full process online, without ever leaving the comfort of your home.
Get rates and apply online for a HELOC today.
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Footnote 1 details. Variable Introductory Rate Offer Information
The 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 After Introductory
For a Home Equity Line of Credit, the annual percentage rate (APR) is a variable rate based on The Wall Street Journal® Prime Rate (6.75% on 12/11/2025) 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 includes a 0.25% Auto Pay discount. Rates vary from 7.24% APR to 13.56% 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. To receive a 0.25% 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.
Footnote 2 details. Please consult with your financial advisor as to the benefits and drawbacks associated with unsecured debt compared to secured debt and whether consolidation of your debts makes financial sense for you.
Footnote 3 details. Closing Costs and Fee Information
BMO will pay closing costs for loans secured by a primary residence 1 to 4 family residence, excluding investment properties. 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. Fixed Rate Lock Option: The minimum line of credit withdrawn from a 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 5 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 (BMO does not offer Home Equity Products 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 accounts are excluded). Not applicable to our Private Bank clients or BMO employees.
Footnote 6 details. Calculator is provided by Leadfusion Inc., which is not affiliated with BMO. The calculator provides estimates. We do not guarantee their accuracy or applicability to your circumstances. Results depend on many factors, including the assumptions you provide. Leadfusion may have different privacy and security standards than BMO. Visit its website at www.leadfusion.com to review its privacy policy.
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.
Footnote 8 details. Auto Pay means periodic scheduled payments automatically deducted from your BMO personal checking account, as applicable, to pay the loan. When you sign up for Auto Pay, you authorize the Bank at origination to draw your account for all amounts then due, including any late fees and any other charges. To 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 Loan or a new Home Equity Line of Credit.