Personal Finance

line of credit rates

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  • Aug 22nd, 2012 5:52 pm
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Member
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Aug 31, 2009
325 posts
219 upvotes
BC

line of credit rates

My wife just got a cold call from CIBC offering a $15K LOC at 3.2%. Is that rate about avg out there right now or is it possible to get banks to beat that?

I have an open mortgage at 3.5%, so if I could find a nice LOC rate, I would be tempted to pursue it.

Anyone have any idea what some good competitive LOC rates are out there right now?

Thanks.
6 replies
Deal Guru
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Jul 7, 2007
10983 posts
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jslwc wrote: My wife just got a cold call from CIBC offering a $15K LOC at 3.2%. Is that rate about avg out there right now or is it possible to get banks to beat that?

I have an open mortgage at 3.5%, so if I could find a nice LOC rate, I would be tempted to pursue it.

Anyone have any idea what some good competitive LOC rates are out there right now?

Thanks.
a line of credit at rate of 3.2% and it's lower than your mortgage rate??

what rate do you want?
Deal Addict
Mar 10, 2010
1595 posts
589 upvotes
If it really is a LOC and not a HELOC then 3.2 does not sound correct it was most likely prime + 3.2 which is pretty typical.
Deal Guru
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Jul 7, 2007
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Clacker wrote: If it really is a LOC and not a HELOC then 3.2 does not sound correct it was most likely prime + 3.2 which is pretty typical.
even HELOC at 3.2% is way better than most others are getting nowadays.

something is not right
Deal Addict
Aug 1, 2008
1554 posts
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Ottawa
yeah...that's gotta be prime plus 3.2

I was at CIBC to lock in a 7 year fixed mortgage yesterday and I was rolling a part of a $55k unsecured line into it. The unsecured line was
at prime+2.5 (5.5) .... I told my guy to drop the limit and he said don't do that as the rate would be higher. I said ?????? WTF ???? but he
showed me their rate table for unsecured lines broken out by Beacon score and sure enough if I wanted to lower it I would be paying
7.5 percent (prime + 4.5)

That one kinda shocked me. So when we're discussing rates on unsecured LOC's we have to consider the amount...at least for CIBC. I
can't speak for other banks.
Deal Addict
Jun 13, 2009
1026 posts
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why would cibc randomly call you and offer a LOC?
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Feb 15, 2008
26318 posts
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Calgary
skwigglyline wrote: why would cibc randomly call you and offer a LOC?
They obviously are identifying customers who they feel have capacity to take on more credit, and are trying to expand their business. Now that mortgage loan growth probably is coming to a crashing halt.

Personally I'd suggest just getting off the hamster wheel of debt, but there are people who like to borrow out there, and I certainly like getting CIBC dividends.

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