The metamagnetic behavior at low temperatures was found to be directly related to the dielectric properties of the compound. In particular, field-dependent measurements of capacitance show a magnetocapacitance (MC) effect with double-hysteresis loop behavior in direct correspondence with the magnetization. Our x-ray diffraction results show the Pna$2_1$ structure down to 8 K and suggest the absence of a structural phase transition across $T_N$. Soft x-ray absorption spectroscopy and soft x-ray magnetic circular dichroism (XMCD) measurements at the Fe $L{}_{2,3}$ and Ho $M{}_{4,5}$ edges revealed the oxidation state of Fe and Ho cations to be $3+$. Fe $L{}_{2,3}$ XMCD further shows that ${\mathrm{Fe}}^{3+}$ cations are antiferromagnetically ordered in a noncollinear fashion with spins arranged ${90}^{\circ }$ with respect to each other. Our findings show that $\mathrm{Ho}\mathrm{Fe}W{O}_6$ is a type-II multiferroic exhibiting a MC effect. The observed MC effect and the change in polarization by the magnetic field, as well as their direct correspondence with magnetization, further support the strong ME coupling in this compound.