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  • Oct 3rd, 2014 8:03 pm
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[OP]
Jr. Member
Mar 13, 2012
126 posts
2 upvotes

LoC Rates

Good afternoon,

Im curious to know if anyone can give me an idea of LoC rates. We recently purchased a new home (first time buyer) and are debating on doing some renovations to the house. I know there are some factors that play a role in the decision, but I am curious to know if anyone can give me a ball park firgure on what to expect. Incase any of this information matters:

Purchase price: 260,000
Credit Score: 710 / 750
Income 45k/55k

The reason I ask is that we use TD and were preapproved for a LoC of prime + 5.5, but in my opinion that rate seems high.
8 replies
Sr. Member
Apr 28, 2014
675 posts
174 upvotes
Oakville, ON
amar87 wrote:
Oct 3rd, 2014 12:15 pm
The reason I ask is that we use TD and were preapproved for a LoC of prime + 5.5, but in my opinion that rate seems high.
Yes, that rate is high. 8.5% on an unsecured PLOC is an offer I would turn down.

Prime has been stuck at 3% since September 2010. I received a PLOC from BMO as part of a pre-approval campaign back in late 2010. The rate I was given was Prime + 1.5; I negotiated them down to Prime + 1.25

My suggestion is either grind TD and see if you can negotiate down the rate; or apply with the competition.

Three months ago, I was on the phone with CIBC and was given a pre-approval at Prime + 3. I turned that down. I think the banks are purposely giving customer crappy rates on these pre-approvals in the hopes you will sign on the dotted line without questioning it.
Deal Expert
User avatar
Jul 30, 2007
23211 posts
8163 upvotes
Toronto
I have TD unsecured P+2% . I do get their promo once a year (near RRSP season) telling me I am qualified for P+.5% or P.

OP should shop around
Deal Addict
User avatar
Jan 2, 2012
2893 posts
782 upvotes
Toronto
amar87 wrote:
Oct 3rd, 2014 12:15 pm
Good afternoon,

Im curious to know if anyone can give me an idea of LoC rates. We recently purchased a new home (first time buyer) and are debating on doing some renovations to the house. I know there are some factors that play a role in the decision, but I am curious to know if anyone can give me a ball park firgure on what to expect. Incase any of this information matters:

Purchase price: 260,000
Credit Score: 710 / 750
Income 45k/55k

The reason I ask is that we use TD and were preapproved for a LoC of prime + 5.5, but in my opinion that rate seems high.
How much downpayment did you have? If you put down more than 20%, then you could set up a HELOC which have rates around P + 0.5%.
Deal Addict
Nov 19, 2003
4881 posts
1879 upvotes
A Place to Stand
Yes, as others have said, I was pre-approved for a HELOC a few years ago at prime + .5 and have the credit sitting there at that rate in case I need to use it, which I have not had to so far.
[OP]
Jr. Member
Mar 13, 2012
126 posts
2 upvotes
Heloc is not an option at this time.
Deal Addict
Apr 13, 2006
1011 posts
65 upvotes
Mississauga
Honestly, just never see anything less than P+3 even with scores above 750.
My views represent solely my views, and not the company in which I work for.
Sr. Member
Apr 28, 2014
675 posts
174 upvotes
Oakville, ON
kiz5 wrote:
Oct 3rd, 2014 3:21 pm
Honestly, just never see anything less than P+3 even with scores above 750.
Is that Pre-Approval or after you send the application for underwriting?

Whatever methodology that the banks use to price a PLOC may be different in 2010 vs. 2014; I still think Prime + 3 is not such a great deal

I've also heard that a Manager is able to provide a Supervisor Override on COINS (I've worked for CIBC in the past) to re-price a PLOC after funding down to Prime - 0.5. True or not true?
Deal Addict
Apr 13, 2006
1011 posts
65 upvotes
Mississauga
Cerium398 wrote:
Oct 3rd, 2014 3:52 pm
Is that Pre-Approval or after you send the application for underwriting?

Whatever methodology that the banks use to price a PLOC may be different in 2010 vs. 2014; I still think Prime + 3 is not such a great deal

I've also heard that a Manager is able to provide a Supervisor Override on COINS (I've worked for CIBC in the past) to re-price a PLOC after funding down to Prime - 0.5. True or not true?
Can't adjust pre-approvals. And actually have to escalate to DVP for pricing after funding .... which never gets approved.
My views represent solely my views, and not the company in which I work for.

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