HELOC Rate Thread

[bm_attar]

I wish you guys the best of luck on this, but I don't think the economics are there for a lender to offer a rock-bottom rate, no fees, on a HELOC where they are in 2nd position (i.e. not the primary mortgagor). First of all, their risk is greater than if they are the primary lender. Second, by going down this route you're showing yourself to be a price-sensitive borrower. If they eat the legal and appraisal fees, that will lower their effective interest rate significantly should you jump ship in a year or two. Plus they may well be seeking to make sure you have some sunk costs to encourage you not to stray (this of course is not rational but these things work!)

In my case, they will have 1st position as the mortgage is paid. No other major debts. I thought I would try with TD as it was my bank. Kind of disappointed. I didn't contact other banks yet, was hoping someone here will provide a good contact to start with.

What about mortgage brokers? Any point of using them?

[afiglee]

In my case, they will have 1st position as the mortgage is paid. No other major debts. I thought I would try with TD as it was my bank. Kind of disappointed. I didn't contact other banks yet, was hoping someone here will provide a good contact to start with.

What about mortgage brokers? Any point of using them?

Try CIBC or RBC. They offer better deals than TD and may cover the fees. You might have to borrow a certain amount for a certain period of time to get the fees refunded.

laptop-tech works for National Bank and should be able to give you a good rate or cover the set up fees. PM him for contact info.

Do not forget about the discharge fee (generally $200-300) when you want to close the HELOC and have your collateral released.

[Aggy]

Question and hoping for some advice...

Looking to get a loan and went to Scotia as I do my banking with them. My mortgage is with Firstline. Is this a good deal? We only asked for $25k for renos and what not:

Unsecured LOC at 0.99% for 9 month promo periods after which goes to prime + 1.5%

or

Secured LOC at prime + 0.5%

Not sure if I should look around for a better rate? I know >$25k I have to go with secured.

Thanks guys!

[afiglee]

Looking to get a loan and went to Scotia as I do my banking with them. My mortgage is with Firstline. Is this a good deal? We only asked for $25k for renos and what not:

Unsecured LOC at 0.99% for 9 month promo periods after which goes to prime + 1.5%

or

Secured LOC at prime + 0.5%

Not sure if I should look around for a better rate? I know >$25k I have to go with secured.

Both rates are very good. It is unlikely you will find a better deal at another bank where you are not a customer.

Depending on how much money you need and for how long you may be better off with the unsecured LOC because of the set up and discharge fees for the HELOC. There are also other options for smaller amounts (<$20k) and a short term (<15 months).

[Aggy]

Both rates are very good. It is unlikely you will find a better deal at another bank where you are not a customer.

Depending on how much money you need and for how long you may be better off with the unsecured LOC because of the set up and discharge fees for the HELOC. There are also other options for smaller amounts (<$20k) and a short term (<15 months).

Thanks for the info! I called CIBC and they offered prime +1 and waive the fees if we keep a balance of $30k on a secured LOC. Scotia is offereing prime +0.5, but no fees waived.

Any thoughts on which route is better or is there some sort of calculator I can use to see what would be the best route to go?

[ryebread12]

Anyone have tips on how to negotiate for good rates? How did everyone get the rates that you get? Does it also depend how much money you have with the bank?

[clients]

National Bank is offering Prime + 0% to engineers...I have a contact if anyone is interested.

Hello99: Could you send me your contact at National Bank regarding the HELOC for engineers. I tried PM'ing you but your mailbox is full.

Thanks!

[rob444]

Question... i have a readvanceable mortgage/HELOC product through FirstLine Mortgages (division of CIBC). So basically with each mortgage payment, the HELOC amount is instantly increased accordingly. Perfect for Smith Manoeuvre which i'll be starting again this year.

My mortgage is at P - 0.7, and HELOC at P + 1.

Since this is kind of an all-in-one product, am i pretty much locked into the P+1 rate for HELOC? I can't really change to a new company, so dont see any reason FirstLine would generously reduce my rate now to match other places, unless my mortgage was up for renewal which wont be for a few years.


P + 0% for engineers sounds good... i hope that one is still available when i need to renew and can shop around!