TL;DR
• Prime sits at 4.95 %, but today’s best secured HELOC deals dip to 4.85 % while sub‑prime fintech lines rocket past 45 %.
• Tangerine & CIBC headline 2025’s big‑bank leaderboard (Prime –0.10 pp to +1 pp).
• You’ll need roughly a 680 credit score for entry—but 720+ unlocks true prime‑level pricing.
• Scroll 30 seconds to our lender table and compare 15 live rates side‑by‑side.
• Only need a few hundred bucks? Bree’s 0 % cash‑advance beats any LOC under $500—instant, fee‑free, no credit check.
Quick Primer – How LOC Rates Are Set
Canadian LOCs float at Prime + Spread. Each bank sets its prime (almost always matching BoC’s overnight target) and then adds:
- +0 to +2 pp for secured HELOCs or investment‑backed LOCs
- +1 to +5 pp for unsecured personal/student LOCs (credit‑score dependent)
- +7 pp or more for sub‑prime & fintech credit lines
The chart below shows how prime has moved since 2024:
2025 Line‑of‑Credit Rate Table (Most Recent Bank Posts)
Reading the Table
- Secured beats unsecured – HELOCs & investment‑backed lines price near prime. If you lack collateral, expect +2–5 pp.
- Credit unions compete – Affinity & Conexus undercut big‑5 banks on unsecured/student rates.
- Watch the fine print – Some lenders add annual fees, draw fees, or mandatory insurance.
When a Line of Credit Makes Sense
- Large recurring expenses (home renos, tuition, phased business projects)
- Borrow > $5 k and plan to carry balance for months
- You have collateral or 700+ credit score to snag prime‑level spreads
But for a $100–$500 cash‑flow gap? You’ll pay interest from day 1 even if you only use the LOC for a week.
Bree — Zero‑Interest Backup for Small Cash Needs
While not a traditional LOC, Bree plays the same liquidity role for everyday Canadians—without the interest.
Frequently Asked Questions
What credit score do I need to get a line of credit?
Most mainstream banks look for a 660+ FICO, while the best advertised spreads (Prime or Prime + 1 pp) often require 720 +. Private and sub‑prime lenders may approve scores below 600—but expect double‑digit rates.
How much can I borrow with a line of credit?
Typical limits range $5,000 – $50,000. Some institutions start as low as $1,000, while collateral‑backed or high‑income borrowers can see $100,000+ limits.
How do lines of credit differ from credit cards?
Both are revolving credit, but LOCs carry variable rates ~5 %–10 % (interest calculated daily) vs. credit‑card fixed rates around 19.99 %. LOC limits are higher and payments lower; however, funds usually must be transferred to chequing before use, whereas credit cards swipe instantly.
What can I use a line of credit for?
Banks rarely restrict usage. Common reasons include home renovations, tuition, vehicle repairs, furniture, vacations, ongoing business projects or simply a rainy‑day buffer.
How long does approval take?
Online applications are quick, but funding typically arrives 1–2 weeks after underwriting. Some digital‑only lenders can release funds same‑day once documents are verified.
What is the current prime rate in Canada?
Most big‑5 banks set prime at 4.95 % (as of March 13 2025).
Why does my LOC quote differ from table rates?
Banks layer a credit‑based spread (+1 – 11 pp) on top of prime. Your score, income & collateral drive the spread.
Is a HELOC always cheaper than a personal LOC?
Usually yes—lenders price lower when your home secures the balance. Tangerine’s HELOC beats most unsecured LOCs at 4.85 %.
Can I convert a LOC balance into a fixed‑rate loan?
Many banks let you lock all or part of your LOC into a term loan if you fear rising rates.
Does Bree help build credit?
Not yet. Bree focuses on fee‑free liquidity; future versions may include optional credit‑builder reporting.
Bottom Line
Shop the spread, not just prime. In 2025, the best secured LOCs hover below 5 %, while average unsecured rates push 8 – 12 %. For modest, short‑term needs, Bree’s zero‑interest advance often beats even the lowest LOC quotes. Compare your real costs, then choose the smarter path for your wallet
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