Shopping around for the best line of credit rates in Canada can save you money every time you draw on your credit line. We’ve spent hours gathering line of credit interest rates from banks, credit unions and other financial institutions across Canada to help you easily compare your options.
The average line of credit interest rate is 7.75% for unsecured lines of credit and 3.99% for secured lines of credit, according to Statistics Canada. The rate you’ll get will depend on personal factors, such as your credit score, income and existing debts. You can either get a fixed rate or a variable rate.
Banks, credit unions and online lenders offer lines of credit in Canada. Check the table below to compare current line of credit interest rates across a range of lenders.
| Provider | Interest rate | Interest rate type | Loan amounts | |
|---|---|---|---|---|
| Loans Canada Personal Line of Credit | 9.99% - 35.00% | Fixed | $5,000 – $35,000 | |
LoanConnect Personal Line of Credit | 8.99% - 35.00% | Fixed | $500 – $50,000 | |
Nyble Credit Line (Unsecured) | 0% | Fixed | $30 – $250 | |
MogoMini Line of Credit (Unsecured) | 34.37% | Fixed | $300 – $5,000 | |
| Fora Line of Credit (Unsecured) | 19.90% - 34.90% | Fixed | $1,000 – $15,000 | |
FirstOntario Line of Credit (Unsecured) | From 7.49% | Not stated | Varies | |
FirstOntario Line of Credit (Secured) | From 6.49% | Not stated | Varies | |
Desjardins Personal Line of Credit (Unsecured) | $500 - $4,999: 11.45% $5,000 - $25,000: 10.45% $25,001+: Contact lender | Variable | Varies | |
SCU Personal Line of Credit (Secured or Unsecured) | From 5.45% | Not stated | From $5,000 | |
CIBC Personal Line of Credit (Unsecured) | 4.45% + amount that varies based on your financial situation | Variable | From $5,000 | |
CIBC Personal Line of Credit (Secured) | From 4.45% (introductory rate) | Variable | From $10,000 | |
National Bank Integrated Line of Credit | 11.45% | Variable | $500 – $4,999 | |
National Bank Personal Flex Line | Varies | Variable | From $5,000 | |
Manulife Bank Access Line of Credit (Secured) | From 5.45% | Not stated | $25,000 – $1,000,000 or more | |
| TD Personal Line of Credit | Varies | Fixed or variable | $5,000 – $50,000 | |
| TD Investment Secured Line of Credit | Varies | Variable | Percentage of your portfolio | |
BMO Personal Line of Credit (Secured) | 4.45% + amount that varies based on your financial situation | Variable | From $2,000 | |
BMO Personal Line of Credit (Unsecured) | 4.45% + amount that varies based on your financial situation | Variable | $2,000 – $25,000 | |
RBC Royal Credit Line (Unsecured) | 4.45% + amount that varies based on your financial situation | Variable | From $5,000 | |
RBC Royal Credit Line (Secured) | 4.45% + amount that varies based on your financial situation | Variable | $5,000 – 65% of value of collateral | |
ScotiaLine Personal Line of Credit | Varies | Variable | $5,000 – $75,000 | |
ATB Personal Line of Credit (Unsecured) | 4.45% + amount that varies based on your financial situation | Variable | $5,000 – $50,000 | |
ATB Personal Line of Credit (Secured) | 4.45% + amount that varies based on your financial situation | Variable | From $5,000 | |
Vancity Personaline Line of Credit (Unsecured) | 17.75% | Not stated | $500 – $5,000 | |
Vancity Creditline Line of Credit (Secured or Unsecured) | Varies | Variable | From $5,000 | |
Meridian Line of Credit (Unsecured) | Varies | Variable | Varies | |
Prospera Revolving Line of Credit | 4.70% + amount that varies based on your financial situation | Variable | From $5,000 | |
Innovation Federal Credit Union | 5.95% – 14.99% | Variable | $5,000 – $50,000+ | |
DUCA Line of Credit (Secured) | From 4.95% | Variable | Varies | |
BEEM Credit Union (Secured) | From 4.95% | Variable | Varies |
Some lenders also offer lines of credit for people who want to make the maximum annual contribution to their RRSP. Check the table below for current RRSP line of credit interest rates.
| Provider | Interest rate | Interest rate type | Loan amounts | |
|---|---|---|---|---|
Scotia RSP Catch-Up Line of Credit | Prime + 1% | Variable | $1,000 – $75,000 | |
TD RSP Line of Credit | Varies | Fixed or variable | Up to $50,000 | |
BMO RRSP ReadiLine | Varies | Variable | Varies |
See how the average interest rates in Canada for secured and unsecured lines of credit have changed over the past decade (since January 2015) in the graph below.
You’ll usually find the best line of credit interest rates from financial institutions that offer secured lines of credit, starting at Prime + 0.50%. Examples include DUCA and Beem Credit Union.
Keep in mind that these are advertised rates only, and the rate you’ll get will depend on your financial situation. If your credit isn’t great, banks and credit unions may be out of reach, but you have access to nontraditional lines of credit from lenders like Fora.
A line of credit is an open-ended loan where you can access any amount up to your pre-approved limit, with no fixed repayment term. You can borrow as much or as little as you need, but if you reach your limit, you can’t withdraw more until you pay down your balance.
A personal line of credit is similar to a credit card, with the main differences typically being a higher credit limit and lower rates compared to a credit card.
You won’t need to submit a credit application every time you make a withdrawal from your line of credit—once you’re approved, you can access the funds whenever you to. Some lines of credit are even linked to a debit card, providing easy access to funds.
Interest on your line of credit is only charged on the funds you actually withdraw. Line of credit interest rates in Canada are usually variable. Variable interest rates are often described as “prime + increment %.” The increment percentage will depend on factors like your credit score, income and debt load.
Variable interest rates are tied to the Bank of Canada prime rate, which can be adjusted several times a year. That means that your line of credit interest rate, and subsequent repayment amount, could change over time.
In order to calculate how much your variable rate will be, you simply have to add the bank’s prime rate to an incremental percentage.
So, for example, if your rate is described as “prime + 7%,” you first need to find the bank’s prime rate, which is usually listed on its website. Let’s say the bank’s prime rate is 5.45%. In this example, you’ll add 7% to that, so your interest rate would be 12.45%. If the prime rate goes up by 0.25 percentage points in a few months from 5.45% to 5.7%, your interest rate would then change to 12.7%.
If you’re looking for a line of credit with bad credit in Canada, you can potentially qualify to get one from online lenders that specialize in working with bad credit borrowers. Some legitimate bad credit online lenders in Canada who offer line of credit products include Mogo and Fora.
Another option is to apply for a bad credit line of credit with a loan search platform—like Loans Canada or LoanConnect—who will then be able to match you with a number of lenders you qualify with.
If you’re on the fence about whether a personal line of credit is right for you, consider these alternatives:
When you open a line of credit, you’ll need to choose between two options:
Some of the main differences are how they’re typically used and how they’re repaid:
| Personal loan | Line of credit |
|---|---|
| Often used for a big, one-time purchase | Often used for ongoing purchases |
| Repaid over a fixed term, usually between 1 and 7 years | Doesn’t come with a set repayment period |
| Received as one lump sum | Funds are available and accessed as needed |
One main difference between a credit card and a line of credit is the interest rate. Line of credit interest rates in Canada are usually lower than credit card interest rates.
Another key difference is how they’re used. A credit card is typically used for small everyday expenses, while a line of credit is typically used for big expenses such as major home renovations or emergencies.
And although some lines of credit come with a card linked to the credit account, it’s more common that you won’t get a card and instead will need to transfer money from your line of credit to your chequing account to get access to the funds.
Generally, lines of credit are great in two situations: When you can’t predict the cost of something and when you need fast access to money. You can use a line of credit for just about any expense, such as:
Most lenders offer lines of credit from $5,000 and up to between $25,000 and $50,000 for unsecured lines of credit. However, you may find lower minimum limits from some lenders.
The amount you can borrow on a secured line of credit is typically maxed out at a percentage of the value of the collateral you provide, such as 65%. However, the exact amount you qualify for will vary depending on your personal finances, credit profile and the lender you choose. Your history with the lender may also impact how much you’re able to borrow.
Once you’re approved for your credit limit—the maximum amount that you’re able to borrow overall—you can start drawing from your line.
Keep these features in mind when comparing lines of credit:
There are many options for where to get a line of credit in Canada, including banks (such as RBC, Tangerine and Scotiabank), credit unions (such as Desjardins and Vancity) or online lenders (such as Mogo and Cash Money).
Banks and credit unions tend to offer lower interest rates than online lenders, but only to borrowers with good or excellent credit. Online line of credit lenders tend to be a better fit for bad credit borrowers who can’t qualify with other lenders.
You can apply for a personal line of credit online, over the phone or in person. The exact application process will vary by lender, but you’ll need to provide your personal and contact information as well as details of your finances.
To qualify, you’ll typically need to have good credit, a low debt-to-income ratio and a regular source of income. Lenders will ask for a government-issued ID and bank statements, plus information about your employment.
When you’re ready to apply, compare lenders that offer lines of credit to learn more about their specific requirements.
Eligibility criteria for lines of credit vary between lenders, but you’ll generally need to provide the following information:
| Response | Male | Female |
|---|---|---|
| Line of credit | 11.43% | 7.94% |
It typically takes only a few minutes to complete an application for a personal line of credit. Processing times vary by lender: banks may take one to two weeks to reach a decision, while online lenders may have an answer for you in less than an hour.
If you’re approved, you may be able to start drawing from your line of credit immediately.
If you aren’t able to make a payment, reach out to your lender to discuss your options as soon as possible. You may be able to make small minimum payments toward your debt or move to an alternative payment schedule.
Defaulting on your line of credit will cause your credit score to take a hit and could lead to multiple fees. If you secured your credit line with collateral, your lender can confiscate those assets to cover your debt.
Banks and other lenders often offer line of credit insurance as an additional monthly cost. Different types of line of credit insurance may include disability insurance, life insurance, critical illness insurance or job loss coverage.
Generally, these types of insurance allow you to stop paying your line of credit or have your repayments temporarily suspended if you suffer an illness or injury and are unable to work, or will pay off the outstanding balance in the event of your death.
Line of credit insurance is typically charged monthly and can cost around $0.25–$10 per $1,000 borrowed.
Whether or not line of credit insurance is worth it will depend on your financial priorities. It likely won’t make sense to buy line of credit life insurance if you already have a life insurance policy where the payout will be enough to cover your line of credit debt as well as other expenses.
Your health insurance coverage may also come with a monthly payout in the event of illness or critical injury. If you don’t already have coverage through independent insurance, consider getting line of credit insurance if you know you won’t have the financial resources to cover the payments should the unexpected happen.
A line of credit offers the convenience and easy access to funds of a credit card, but with potentially lower interest rates than a credit card. Compare line of credit interest rates across a range of lenders, but remember that factors like your credit score, income and debt-to-income ratio could impact the rate you qualify for.
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