Personal Line of Credit
What is a line of credit? It’s a quick way to access cash when you need it. Borrow just what you need and only pay interest on the amount you borrow. footnote 1
Why you'll like it
Use it anytime
Whether it’s ongoing renovations or being ready for the unexpected, a line of credit gives you fast access to cash. You don’t need to use all the available funds at once, just what you need at the time. footnote 1
Keep reusing it
Borrow some. Pay back some. Borrow again. As long as you have available credit and make your minimum payments, you can keep borrowing at any time. No need to reapply.
Repay at your own pace
Low minimum monthly payments help you manage your budget. Pay back 2% of the outstanding balance or $50 (whichever is greater) each month. There are also interest-only payments. footnote 2
Tip: With a line of credit, you’re only charged interest on the amount you borrow. So, if you have a $25,000 line of credit and only borrow $5,000, you’re only charged interest on the $5,000.
How we calculate your interest rate
BMO uses our prime rate to set variable interest rates for lines of credit. The rate you pay on your loan or line of credit depends on a few factors including how much you’re borrowing, your credit history and if you’ve chosen to secure your loan with collateral.
How to apply for a Personal Line of Credit
Step 1
Book an appointment at a BMO branch to talk with a lending expert.
Step 2
Come in, bring the documents below and let’s talk about what can work for you.
Step 3
We’ll review your situation and come up with a line of credit plan.
Step 4
Access your money at a BMO branch or with line of credit cheques.footnote 3
Let’s do this! What do I need before I apply?
Government-issued photo ID- Proof of employment such as:
- A letter from your employer
- Recent paystubs
- Recent T4/T4A slips or RL1 if you’re a resident of Quebec, or T1 income tax return or Revenue Quebec TP1 with corresponding notice of assessment
Ready to crunch the numbers on your loan payments?
Our easy-to-use loan calculator can show you what your payments could look like.
Personal Line of Credit Frequently Asked Questions
Interest is calculated on your daily balance and charged monthly to your account.
Yes they can – and it’s good to keep this in mind. For lines of credit, your interest rate is a variable interest rate and will change without advance notice whenever BMO's Prime Rate changes or otherwise with notice in accordance with the terms of your Personal Line of Credit agreement.
The BMO Prime Rate – also known as the prime lending rate – is the annual rate we use to set variable interest rates for our loans, lines of credit and mortgages. The actual rate you’ll get on your loan or line of credit is based on many factors in addition to the Prime Rate. These include how much you’re borrowing, your credit history and if you’re using collateral. You can see our current Prime Rate here.
Good question. Your credit history shows us how well you’ve handled debt and repayments in the past, so we check it carefully when reviewing your credit application.
You can get a copy of your credit history from: Equifax Canada www.equifax.ca1-800-465-7166
Trans-Union Canada www.transunion.ca1-877-713-3393 (Quebec only)1-800-663-9980 (All other provinces)
Have more questions?
Find a branch
Locate a BMO branch near you.
Come talk to us
Visit a branch to get expert insight and discuss your options.
Call us
Give us a call, 24 hours a day, 7 days a week.
footnote 1 details Applications and the amount you can borrow are subject to meeting BMO’s usual credit criteria.
footnote 2 details Conditions apply.
footnote 3 details Convenient access to funds, anytime, up to your credit limit through a branch or Line of Credit cheques. Applications and the amount you can borrow are subject to meeting BMO’s usual credit criteria.