HELOC Rates Canada 2026: Current Best Rates

Current Canadian Prime Rate

6.45%

Bank of Canada Overnight Rate (January 2026)

Best HELOC Rates by Lender Type

Lender Type	Best Rate	Typical Range	Best For
Big 5 Banks	Prime + 0.5%	6.95-7.95%	Existing customers, excellent credit
Credit Unions	Prime + 0.75%	7.20-8.45%	Flexibility, local service
Online Lenders	Prime + 1.0%	7.45-8.95%	Fast approval, self-employed
Alternative Lenders	Prime + 2.0%	8.45-11.95%	Bad credit, non-standard properties
Private Lenders	Prime + 3.5%	9.95-14.95%	Very poor credit, quick funding

What Affects Your HELOC Rate?

Factors That Lower Your Rate

Credit score 750+ (best tier pricing)
Primary residence (not investment)
Low LTV (more than 30% equity)
Existing bank relationship
Stable employment history

Factors That Increase Your Rate

Credit score below 680
Investment property
High LTV (less equity)
Self-employed (harder to verify income)
Non-standard property type

Rate Hold vs Variable Rate Warning

Variable Rate Reality

HELOCs are typically variable rate loans. As the Bank of Canada changes rates, your HELOC rate moves up or down. If prime rises to 7.45%, your 6.95% HELOC becomes 8.95%.

Fixed-Rate Alternative

If you want rate certainty, consider a fixed-rate home equity loan instead. Rates are slightly higher (7.89-11.99%) but your payment never changes with rate fluctuations.

Shop Multiple Lenders for the Best Rate

Rates vary significantly between lenders. A mortgage broker can compare options and find your best rate.

Get Your Best Rate