Real Estate

PC Financial HELOC line - anyone has it? Your feedback

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  • Aug 23rd, 2017 10:32 pm
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Feb 16, 2004
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PC Financial HELOC line - anyone has it? Your feedback

Hey guys,
UPDATE MAY 5TH: we got the heloc with PC Financial. Now the question: how do you pay for a used car (1.5-2 years old SUV) with this line? PC gave us 2 bank cards attached to account (daily limit of $200). If we go to a dealership for test drive i would want the car asap (we have our own business so its realllyyyyy tricky to spend away from it).
Most dealerships request Bank Draft of Money Order - As per PC - i would have to call in for this draft and they will send it to me vial MAIL 5-7 business days....GEEEZ!

Any other ideas how to pay for car utilizing the HELOC? (will be doing $5000 downpayment)



we are shopping for HELOC up to $150k (not necessarily use the whole amount, but mostly to buy a used Toyota Highlander and perhaps some renos later).
PC Financial is offering prime +0.5% as second place credit line, $150 fee covers appraisal and legal fees.

If we decide to sell the house (we just renewed our Mortgage in July/16 with First National), what happens to HELOC line?
do we need to repay it asap? PC mentioned there is a $250 discharge fee to close the line.

We bank with BMO and they offer 3.7% for HELOC and NOT covering any fees.
Scotiabank - 3.2% and they will cover only appraisal fee and we have to pay $450-500 for legal fees.

I am kinda lost in these options now...
We currently have $300K in mortgage and house is worth around $870-900K in Newmarket.
Last edited by edkate on Mar 30th, 2017 11:53 am, edited 2 times in total.
24 replies
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Jul 16, 2006
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Depends on the Heloc if it is open or closed. If closed you may have to pay a fee to break it.
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rich24 wrote: Depends on the Heloc if it is open or closed. If closed you may have to pay a fee to break it.
Hey, what is a closed heloc?
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Feb 2, 2014
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edkate wrote: Hey guys,
we are shopping for HELOC up to $150k (not necessarily use the whole amount, but mostly to buy a used Toyota Highlander and perhaps some renos later).
PC Financial is offering prime +0.5% as second place credit line, $150 fee covers appraisal and legal fees.

If we decide to sell the house (we just renewed our Mortgage in July/16 with First National), what happens to HELOC line?
do we need to repay it asap? PC mentioned there is a $250 discharge fee to close the line.

We bank with BMO and they offer 3.7% for HELOC and NOT covering any fees.
Scotiabank - 3.2% and they will cover only appraisal fee and we have to pay $450-500 for legal fees.

I am kinda lost in these options now...
We currently have $300K in mortgage and house is worth around $870-900K in Newmarket.
It's just like a mortgage...it's secured a "loan". Once you sell the house and the security is gone, the HELOC balance is paid out and closed (along with the mortgage) with the sale proceeds. The lawyer ensures they are paid out before releasing the net proceeds to you.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Jul 16, 2006
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edkate wrote: Hey, what is a closed heloc?
Just means you lock at a rate for say 1--5 years
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rich24 wrote: Just means you lock at a rate for say 1--5 years

oh.. Appreciate the clarification!
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edkate wrote: oh.. Appreciate the clarification!
Seems to be some confusion here... HELOC by definition is a revolving credit line.... and therefore 'open'. If you lock it into a closed term, that's called a mortgage. Some banks have an in-between product, like TD's FRAO which is essentially still a mortgage installment loan.

All HELOCs will have a discharge fee. $250-300 is pretty normal.
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superfresh89 wrote: Seems to be some confusion here... HELOC by definition is a revolving credit line.... and therefore 'open'. If you lock it into a closed term, that's called a mortgage. Some banks have an in-between product, like TD's FRAO which is essentially still a mortgage installment loan.

All HELOCs will have a discharge fee. $250-300 is pretty normal.
So we would have to pay the balance in full if we decide to sell our house say in 2 years?
Can we pay it off AFTER the sale of the house?
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edkate wrote: So we would have to pay the balance in full if we decide to sell our house say in 2 years?
Can we pay it off AFTER the sale of the house?
I think someone else already answered this question earlier in the thread, but no you can't.

When you sell the house, your lawyer's job involves disbursing the funds. Mortgage liens are typically registered in 'first position/charge' with a HELOC behind as a 'second charge'. If you have no mortgage, then the Heloc would be in first position. Either way...bank gets paid out by the lawyer before you ever see the rest of the funds.
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superfresh89 wrote: I think someone else already answered this question earlier in the thread, but no you can't.

When you sell the house, your lawyer's job involves disbursing the funds. Mortgage liens are typically registered in 'first position/charge' with a HELOC behind as a 'second charge'. If you have no mortgage, then the Heloc would be in first position. Either way...bank gets paid out by the lawyer before you ever see the rest of the funds.
Thank you! i thought so too
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please see update in the first post - need more help from you guys:)
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Could i possibly pay down $5000 cash, then charge $5-7k on credit cards (to get points or cash back) and only AFTER statements come to add these Credit cards to PC financial banking Payee List and pay with HELOC?
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Feb 10, 2008
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Try calling them...I don't have a HELOC but just a regular LOC with PCF and I was able to get a bank draft the next day. They just send it to a CIBC branch of your choosing and you stop in and pick it up. Cost me something like $27.50 for the rush. I called them around 10am and the CIBC called me about 9am the next morning to say it was ready.
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appreciate the quick reply!

yes, they mentioned it to us about $27.50. My problem is that i would have to go to dealership TWICE and it requires time in traffic + away from business (it's very time sensitive) and 18 months old toddler.
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Why twice? Can't you get the bank draft before you go?
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i need to do a test drive and negotiate a better pricing on the listed price...
Would you pay a listed price on a vehicle? no :)
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edkate wrote: Could i possibly pay down $5000 cash, then charge $5-7k on credit cards (to get points or cash back) and only AFTER statements come to add these Credit cards to PC financial banking Payee List and pay with HELOC?
Did you try asking PC?

I think I'd just transfer over the approximate sum over to an account I have easier access to, like my checking account. Do your car shopping. And when it comes time to pay the piper, you can pay cash, credit card (if they'll let you), or go get a money order quickly from a brick and mortar bank. If you don't end up making a purchase, you can pay back the LOC before you rack up too much interest.

C
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We are buying a vehicle $35K+ so cash is not feasible except for $5k downpayment.
CNeufeld wrote: Did you try asking PC?

I think I'd just transfer over the approximate sum over to an account I have easier access to, like my checking account. Do your car shopping. And when it comes time to pay the piper, you can pay cash, credit card (if they'll let you), or go get a money order quickly from a brick and mortar bank. If you don't end up making a purchase, you can pay back the LOC before you rack up too much interest.

C
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edkate wrote: We are buying a vehicle $35K+ so cash is not feasible except for $5k downpayment.
My point is still the same... Transfer the money into an account that you have easier/quicker access to. I'm presuming you have a bank account at a brick and mortar bank, so you can get a bank draft out quickly.

C
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edkate wrote: i need to do a test drive and negotiate a better pricing on the listed price...
Would you pay a listed price on a vehicle? no :)
I see...but it's not like you need to put down the entire payment right then and there even if you do decide to buy the car. I think when I last bought, I simply put a small deposit down using my credit card and then came back with the rest of the payment when I picked up the car. You will need to go back and get the car anyway right? Should have lots of time to get a bank draft...they usually need a few days to clean up the car and prep it to go anyway (or at least that's what they tell you!).

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