The Top Lines of Credit for Canadians: What You Need to Know
- William Brazeau
- 4 days ago
- 3 min read
Updated: 2 days ago
When you want flexible access to funds—without the high interest of a credit card—a line of credit is hard to beat. It’s a financial safety net. You can borrow what you need, repay at your own pace, and only pay interest on the amount you use.
But not all lines of credit are created equal. Here’s what’s worth considering if you’re shopping for the best options in Canada right now.
RBC’s Royal Credit Line is one of the most popular personal lines of credit in Canada. It comes with flexible repayment options, competitive rates, and the ability to lock in a portion of your balance at a fixed rate if interest rates start rising. The standard rate for unsecured lines of credit hovers around prime + 3–5%, but RBC often offers better rates for clients with good credit.
Key Features:
Credit limits start at $5,000
No annual fee
Option to protect your line with insurance
TD makes it easy for clients to apply, check balances, and access funds online or at any branch. TD often offers introductory rates and their customer service is generally solid. You can link your line of credit to your chequing account for easy access, or set up overdraft protection.
Key Features:
No annual fee
Interest-only minimum payments
Flexible credit limits
Scotiabank’s option is straightforward: you get a revolving credit line at a competitive rate. They also offer a “ScotiaLine Visa Card,” which lets you access your line of credit as easily as a credit card, anywhere Visa is accepted.
Key Features:
Can be used for purchases and cash advances
No annual fee
Optional balance protection insurance
BMO offers competitive rates and flexible terms. Like most banks, they base your limit and rate on your credit profile. BMO also provides the option to secure your line of credit with an asset (like your home), which can get you a lower interest rate.
Key Features:
Secured or unsecured options
No annual fee
Access via debit card, online, or cheques
CIBC’s line of credit comes with some perks if you’re already a customer. Their online banking tools are robust, making it easy to transfer funds between accounts or pay bills directly from your line of credit.
Key Features:
Minimum credit limit $5,000
No annual fee
Optional insurance coverage
What About Credit Unions and Online Lenders?
Don’t overlook local credit unions—they sometimes offer lower rates and more personalized service than the big banks. Online lenders like Borrowell and Fairstone are also making inroads in Canada, providing faster approval processes and clear, fixed rates, although their products sometimes resemble personal loans more than traditional lines of credit.
Who Qualifies?
To get the best rates, you need:
Good to excellent credit (typically 680+)
Steady income
Low debt-to-income ratio
Lenders will check your credit score, ask for proof of income, and review your debts. If you have a home, a Home Equity Line of Credit (HELOC) is another option, usually at much lower rates (often just above prime).
What to Watch Out For
Interest Rates: Unsecured lines are pricier than HELOCs.
Fees: Most big banks don’t charge annual fees, but check the fine print for setup or insurance costs.
Repayment Terms: Lines of credit usually have interest-only minimum payments. Don’t let your balance linger for years.
The Bottom Line
A line of credit is a flexible tool, but it’s still debt. Use it for emergencies, major expenses, or debt consolidation—not for daily spending. Shop around, compare rates, and don’t be afraid to negotiate with your bank.
If you’re considering your options, check your credit score first (you can do this for free in Canada), and then ask each lender for a rate quote—most can do this with a “soft” credit check that doesn’t impact your score.
Have questions about which line of credit is right for you? Drop them in the comments.
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