Personal Finance

My Bank Gave Me A LOC Today...Im Not Impressed

  • Last Updated:
  • Jan 21st, 2014 12:08 pm
Sr. Member
Dec 14, 2004
754 posts
74 upvotes
Waterloo
Is any bank currently offering a SLOC/HELOC at prime?
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Jan 6, 2011
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mre wrote:
Jan 3rd, 2014 1:40 pm
Is any bank currently offering a SLOC/HELOC at prime?
I heard even heard negative with ULOC, but due to business accounts (money relationship) with the bank.
Sr. Member
Dec 14, 2004
754 posts
74 upvotes
Waterloo
I had prime with RBC but they went to prime+0.5 early in the summer. If other banks have the ability to offer it, I could use it as leverage with RBC.
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Mar 2, 2005
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LongLiveRFD wrote:
Jan 3rd, 2014 1:50 pm
I heard even heard negative with ULOC, but due to business accounts (money relationship) with the bank.
If that's true its probably very limited and requires multiple millions in assets to say the least.
Member
Mar 30, 2009
374 posts
52 upvotes
Toronto
Mark77 wrote:
Jan 1st, 2014 3:43 am
It was about 3 years ago that they sent me the letter, IIRC. Maybe its not an explicit product issued out of the branch, but rather, something that head office decides to offer to people with equity > 0 with TD and impeccable payment performance (which I most certainly have, my retirement registered account being there in e-Series funds and a significant multiple of the available ULOC amount!).
Chances are it's this. TD dropped my interest rate on my ULOC from P + 4.65% to P + 0.5% and dropped my minimum payment from 3% to 1% (not interest only but still lower than 3%), around 2 months after transferring a pile of outside cash to eSeries funds and starting monthly contributions to them.
Member
Jun 2, 2006
327 posts
13 upvotes
Toronto
I don't get the topic of this thread. Credit is not a right its a privilege given based on many risk factors which make an unsecured rate different. I you don't like it, find another institution that sees you as less of a risky unsecured borrower and go to them.
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Jan 27, 2008
760 posts
116 upvotes
Toronto
Is there any benefit to using a SLOC or HELOC to purchase investment properties (e.g. putting down payment) as a form of "protection" vs. using cash? The theory being that the bank can step in to assist since they have a dog in the fight.

I've heard people taking a nominal mortgage (e.g. 100k for a 700k house) when they don't need to, just so that they have the bank's backing in case something goes awry, since they (the bank) has 100k in the property. Is there basis for this on the investment side or is the risk negligible?
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Oct 7, 2012
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jooshua wrote:
Jan 4th, 2014 6:38 pm
I don't get the topic of this thread. Credit is not a right its a privilege given based on many risk factors which make an unsecured rate different. I you don't like it, find another institution that sees you as less of a risky unsecured borrower and go to them.
This ++

however, this could also be OP shopping for rates?
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gogoblender wrote:
Jan 21st, 2014 11:08 am
This ++

however, this could also be OP shopping for rates?
It's really a joke how sometimes the banks are playing the credit score game against themselves as well as you can see how divergent the rates from everyone can be. Ignorance is bliss only before you looked at the bill, most people won't.

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