[Merged] TD increasing line of credit rates?

[HondaScott]

They just put my line of credit rate up 1.50% to 7.25 starting April.... Has anyone else received such letter in the mail? Why the increase for no reason?

[dgodsell]

I also had a bump from

P+2

to

P+4.5

I grieved via e-mail with personal banker. No response yet.

Cash grab from those beleaguered by inertia, if you ask me.

I don't carry a balance on my credit line, but use it for cash flow management. Sometimes I have $600 on for a few days; sometimes I have $20,000 on it for a few days.

Never missed a payment. Excellent credit generally; but this past fall I did do the MBNA BT for $25,000 and also signed up for the Smartcash Credit Card.

[Rhaegar]

mine hasn't changes as of right now...

[HondaScott]

I just called telephone banking and they won't do anything for me. The reason for the increase is based on credit rating, products at TD, and usage of the product. I guess the money they make off my mortgage is not enough. Time to look for a new bank.

[MisterM]

My rate just dropped. I never use the LOC though.

[actng]

I just got a letter my rates are dropping 0.5% YES!

[actng]

They just put my line of credit rate up 1.50% to 7.25 starting April.... Has anyone else received such letter in the mail? Why the increase for no reason?

It's not "no reason".

I grieved via e-mail with personal banker. No response yet.

Personal banker can't do jack. This is coming from "central". The only thing your personal banker can do is waive a few fees, help you fill out some forms you need something, buy you lunch maybe if you're a cute prof.

I just called telephone banking and they won't do anything for me. The reason for the increase is based on credit rating, products at TD, and usage of the product. I guess the money they make off my mortgage is not enough. Time to look for a new bank.

Looking for a new bank because of a few percentage points? Good luck getting a LOC from a new bank to begin with, never mind the rates.

[Mark77]

I predicted this in the RE threads. Interest rate increases in the lack of increases in benchmark/reference rates (ie: BoC target rate).

To the people who are seeing increased rates -- do you have a mortgage by any chance? Do you live in an area of Canada that might be judged to have seriously overpriced housing? Is your occupation one that is dependant on finance or government?

[mcdub]

Mine is going up by 1%. not that I needed a reason to kick the LOC, but this is a good one.
I think I'm going to take my parents up on their offer to use their LOC @ prime vs paying TD 7.3%.

TD seems to be letting my down a bit recently. I know it's business, but I was such a big fan for such a long time.

[krazo]

my rate fell by 1.5%

I never use the LoC though

[Manatus]

Mine went down 3% (to P + 1.5). Maybe they're trying to encourage me to use it to borrow, since I only use the account as an overdraft if I need to smooth over a day or two.

[HondaScott]

Wow how does TD do business. Do you have a lot of mutual funds or a lot of savings with them? I do have a mortgage with them, but if I was to use the line of credit wouldn't a lower rate help pay it back faster? Once my renewal is up I am going elsewhere.

[scan]

I called TD about this and they said since it will go into effect on April 2nd (I think) you can call them and request that your remaining balance be on the old rate for one year. It's not much, but hey, for some it's something at least. I don't have a balance on my LOC so blah.

[Vasyl]

Mine went up 3%, my wife's went up 2.5%. Excellent credit, we have not used a TD credit line for 5 years already as the rates were not competitive in the first place. Do not want to close as we have had these LOCs for 10 years. I think TD wants to attract more business by offending its customers.

[Mark77]

Wow how does TD do business. Do you have a lot of mutual funds or a lot of savings with them? I do have a mortgage with them, but if I was to use the line of credit wouldn't a lower rate help pay it back faster? Once my renewal is up I am going elsewhere.

If you have a lot of "savings" with TD, or mutual funds that aren't e-series or ETFs, then your problems, IMHO, are much larger than a mere percent or two extra on a LOC.

Raising rates, IMHO, is preferrable to simply calling at-risk LOCs. High rates should be an indication of just how risky the bank thinks you are. If you pose less risk than you think, then you should call the bank and make sure they know the entirety of your circumstances. Your rate may actually be higher just because the information on file is 'stale'.

Alternatively, the paradigm of homeowners being less risky is starting to change, especially since house prices are certain to fall very soon, eliminating refinancing options for marginal borrowers.