Personal Finance

2.34%, 2 years, for HELOC?

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  • Sep 8th, 2014 5:31 pm
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Deal Addict
Jul 11, 2008
1791 posts
184 upvotes
Ottawa

2.34%, 2 years, for HELOC?

I don't believe it, but ok. Some guy at work said he's able to take money out of his HELOC and lock it in at 2.34 for 2 years at TD. That's what they're offering right now for a 2 year fixed mortgage... which isn't a HELOC rate. I want to confirm at the bank, but I'd rather go to the gym at lunch... can anyone here shed some light on this?

Thanks
17 replies
Sr. Member
Feb 5, 2009
664 posts
150 upvotes
pace wrote: I don't believe it, but ok. Some guy at work said he's able to take money out of his HELOC and lock it in at 2.34 for 2 years at TD. That's what they're offering right now for a 2 year fixed mortgage... which isn't a HELOC rate. I want to confirm at the bank, but I'd rather go to the gym at lunch... can anyone here shed some light on this?

Thanks
It's a promotion that was sent through the mail. You have to call in to lock in the rate I believe. I threw mines away since there's better ways to borrow money.
Deal Addict
Jul 11, 2008
1791 posts
184 upvotes
Ottawa
i see a promotion on TD's website for a mortgage at 2.34% for 2 years, but that seems different from what the coworker told me.

there's better ways to borrow money than from your potentially huge HELOC at 2.34 (1.61 after tax deductibility)? i think that's good enough for me...
Deal Addict
Jul 11, 2008
1791 posts
184 upvotes
Ottawa
wow. so blai you were right... i went to the bank and they confirmed that it exists for some invited members. however, they set up an appointment with me and a supervisor tomorrow to see what they can offer me... hopefully it'll be something similar. i'll keep you guys updated
Member
User avatar
Jan 11, 2007
431 posts
142 upvotes
Toronto
Hi Pace,

Yes, that is the right rate.Some other banks are matching. You can take money out of your HELOC, but yo have to convert that portion into a 2-year fixed mortgage in order to get the 2.34% rate. You are right that if you invest that money and then convert that portion of the HELOC to a mortgage at 2.34%, your after tax cost is 1.61% (assuming a 31% marginal tax rate).

Ed
Ed Rempel
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Deal Fanatic
Nov 21, 2013
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Montréal
Promotion ends sept. 10, for a $10K min. loan
Deal Fanatic
Dec 5, 2009
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If I already have a mortgage with Td, but no HELOC, can I take advantage of this?
Deal Fanatic
Nov 21, 2013
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Montréal
fdl wrote: If I already have a mortgage with Td, but no HELOC, can I take advantage of this?
If you already have a mortgage I don't think it's worth it 'cause you willmhave fees involved if you break your existing contract...
Deal Fanatic
Nov 21, 2013
8130 posts
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Montréal
Jon Lai wrote: TD is offering mortgage rates for HELOC? Wow..
Every loaner does, as long as you lock for the term... Here we are talking abiut a 2 years locked term.
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Nov 26, 2006
1906 posts
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I have a mortgage from BMO for a rental property, can I take out this HELOC from TD at this rate for the same rental property?
Deal Addict
Jul 11, 2008
1791 posts
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Ottawa
edrempel wrote: Hi Pace,

Yes, that is the right rate.Some other banks are matching. You can take money out of your HELOC, but yo have to convert that portion into a 2-year fixed mortgage in order to get the 2.34% rate. You are right that if you invest that money and then convert that portion of the HELOC to a mortgage at 2.34%, your after tax cost is 1.61% (assuming a 31% marginal tax rate).

Ed
so it's confirmed that I can use this money to invest and deduct the interest? since it turns into a mortgage, I am a little confused about the tax deductibility. thanks ed (for more than just this... SM as well).
Deal Addict
Jul 11, 2008
1791 posts
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Ottawa
DoorCrasher wrote: Promotion ends sept. 10, for a $10K min. loan
not at TD: it's sept 15, and no minimum.
Deal Fanatic
Nov 21, 2013
8130 posts
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Montréal
pace wrote: not at TD: it's sept 15, and no minimum.
Anything online for this? My branch told me sept. 10, and 10K min. loan...
Deal Addict
Jul 11, 2008
1791 posts
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Ottawa
i got my info from my branch. try another one?
Deal Addict
May 18, 2005
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Can you guys give more details about this? I only see 2.34 for a 2-year fix mortgage on their website. How do you set it up as HELOC?
Deal Addict
Jul 11, 2008
1791 posts
184 upvotes
Ottawa
talk to a td rep, they'll set it up for you. i think you have to have an existing heloc... then you tell them you'll use $X from it, but that $X becomes your mortgage for 2 years at 2.34. at the end, it expires and the $X goes back to the HELOC rate.

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