Home equity loans
Put your property to work for you! Leverage the value of your property with a home equity loan footnote 2 to borrow a one-time sum that you can use for a home renovation, debt consolidation… anything you want that requires funds up front!
7.99% APR
What is a home equity loan?
A home equity loan footnote 2 , often referred to as a second mortgage, allows you to leverage the value of your home to borrow money. You get a one-time lump sum loan that you repay in monthly installments over a set term. People often use it for big expenses like home renovations or for paying off debt.
Why a home equity loan is a great choice for you
Enjoy low fixed rates
Enjoy a lower rate than most other loans plus your interest may be tax deductible. footnote 3
Low fees or no fees
No application fees, and no to low closing costs. footnote 4
Payments that work for you
Personalize with terms from 5 to 20 years and enjoy a fixed payment that won’t change. footnote 1
Limited-time offer!
Get a special rate as low as 7.99% APR for 15 years! footnote 1
Goals you can achieve with a home equity loan
Home Improvements
Emergency fund
Consolidate my debt
Invest in my business
Education expense
Any big purchase
Home equity loan calculators
Explore our easy-to-use home equity calculatorsFootnote 5 and budget with confidence.
Home Equity Loan Payment Calculator
Get control of your finances by calculating the amount of your monthly payment with the Loan Payment Calculator.Footnote 5
Debt Consolidation Calculator
Enter your existing loans' details and find out how much you can save by consolidating your debt.Footnote 5
Home Equity Tax Savings Calculator
Find out what your total tax savingsfootnote 3 could be with a home equity line or loan.Footnote 5
Helpful resources
Explore expert insights and practical tips to navigate your homeownership journey.
What is a home equity loan?
We explore how the home equity loan works, its benefits, and how it compares with other loan products.
Secured vs. unsecured loans: What you should know
Secured and unsecured loans offer two different ways to borrow. Learn about the pros and cons of each.
Home equity line of credit vs. home equity loan: Which is better?
Learn the differences between HELOCs and home equity loans to make the right choice.
Home equity loan FAQs
A home equity loan (HELOAN) is a loan that uses the equity you have built up in your home as collateral. HELOANs deliver one time lump sum that you can use for any purpose you like. You can borrow as little as $5,000, with terms ranging from 5 to 20 years, at a fixed interest rate to enjoy a fixed payment that will not change. footnote 1
HELOANs are only available in second lien. If you are mortgage free, a HELOC with the fixed rate lock option might be right for you.We will look at several criteria within your application including your credit history, income, other debt or financial obligations, the amount you 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 will 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 loan is approved, you’ll receive a commitment letter. Then we’ll work with you to schedule your closing and soon after you’ll receive your funds.
There are no up-front costs to a HELOAN and we will pay many of your closing costs. 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 4
With a HELOAN, you retain your original mortgage, but open a new loan to borrow money against it. You then have two loans. A Cash-Out Refinance is a new mortgage that is the amount left on your old mortgage plus the cash that you need, leaving you with one loan.
Note that there would also be closing costs included in a cash-out refinance that are not in a HELOAN. Which one is better for your circumstances depends on the interest rate of your mortgage. Your BMO loan specialist will be able to look at your individual circumstances and advise you on the best product for you.If you are approved, you will receive your funds after a required waiting period of 3 business days from closing. At that time, your funds will either be deposited into an account of your choice or you will receive a check.
We make it easy for you to make payments by the method most convenient for you. You can set up Auto Pay to establish monthly automatic payments from any eligible 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 make a one-time payment, pay online, by mail, or when you visit a financial center. You can send higher payments to pay down the principal at any time without incurring fees. For all the details, visit Ways to Bank.
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Footnote 1 details Special offers subject to change. For Home Equity Loan applications received from 08/03/2026 through 11/02/2026, the 15-year HELOAN term offer is as low as 7.99% APR.
For a Home Equity Loan, the annual percentage rate (APR) depends on the state in which property is located, individual credit qualifications, loan amount, combined loan-to-value ratio, term, and other criteria. Your APR may be as low as 7.74% and as high as 13.97%. To qualify for the lowest rate, you must meet requirements of a $50,000 minimum loan amount, loan-to-value, term length, a FICO credit score of 780+, and have Auto Pay from a BMO personal checking account. Repayments can be made over 20 years. If you borrow $50,000 at 7.99% APR assuming a 70% loan to value ratio for a 15-year term, you will make 180 payments of approximately $477.54 each. Your monthly payment may differ from this example based on your actual loan amount and repayment terms. To receive a 0.25% Auto Pay rate discount you must authorize BMO at origination to withdraw your home equity loan payment each month from a BMO personal checking account using Auto Pay. The discount can only be applied to a new Home Equity Loan.
Footnote 2 details Relationship Requirements: 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) in order to be eligible for our real estate secured lending products, you must be a pre-existing BMO client for at least six month at the time of application; contact a Banker for details. A BMO client relationship includes any consumer or small business deposit account, secured or unsecured loan, or investment account; Alto accounts are excluded. Not applicable to Private Bank clients or BMO employees.
Footnote 3 details BMO does not provide tax or legal advice. You should consult a tax advisor for information regarding any tax impacts associated with your loan.
Footnote 4 details Closing Cost 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 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 5 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 6 details Auto Pay Rate Discount
To receive a 0.25% rate discount, you must authorize BMO at origination to withdraw your Home Equity Loan payment each month from a BMO personal checking account using Auto Pay. The discount can only be applied to a new Home Equity Loan.
The Secure and Fair Enforcement (S.A.F.E.) for Mortgage Licensing Act protects consumers. This nationwide licensing and registration system provides accurate, accessible information about lenders and their employees.