Personal Finance

Please share your Unsecured Line of Credit interest rates and lenders

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  • Apr 22nd, 2017 5:42 pm
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[OP]
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Apr 21, 2004
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Please share your Unsecured Line of Credit interest rates and lenders

Prime rate is 2.70 per cent at most financial instutions

RBC jacked my LOC rate up a few years back and last week, TD mailed a notice stating that it will be increasing my wife's rate so much so that both LOC will be close to 8%. I know this is borderline high and our credit scores are decent 710 / 750.

I did write RBC a note through the secure messaging center a few months ago and they said they are willing to review our financial situation but I'm holding off until a few months after refinancing of our property is complete and 70-80% of our outstanding obligations are paid down so we are in a better position in negotiating.


Questions:

Who do you bank with and my I know your LOC interest rates (APR or premium to the prime rate)?
Any tips on how to re-negotiate down these LOC interest rates? Do I have to add a few product lines or up my banking packages up a notch?


I don't foresee using them much and will be keeping them close to zero very soon but just in case we need to tap into them to help on a family member's obligations (credibility is 100% and my assistance will be entirely voluntary).
242 replies
Jr. Member
Mar 4, 2008
179 posts
46 upvotes
Montreal
Prime + 2% with Scotia = 4.7%
Credit score around 790
Newbie
Jul 15, 2008
97 posts
3 upvotes
Toronto
alanbrenton wrote:
Oct 19th, 2015 11:52 am
Prime rate is 2.70 per cent at most financial instutions, while TD is the lone outlier with a 2.75 per cent
Just so you know TD prime rate is 2.7% and has been for a while.
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Jul 30, 2007
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Toronto
Mine is P + 2%. TD. It started as P + 2.5% (6 yrs ago) and I requested and gotten a reduction about 4 yrs ago. No change since as I had not used this it for the last 4+ yrs.
[OP]
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Apr 21, 2004
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Wow, at least I know the premiums charged to us is on the higher side. :) I might just close the TD one if the lending department don't budge.

Keep them coming and thank you all in advance.
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Jul 30, 2007
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btw, I have virtually all banking & investing activities with TD, except credit card.

For sure, OP should shop around.
Newbie
Dec 30, 1969
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Guelph, ON
We just recently refinanced through a mortgage broker and Scotiabank picked us up as the lender. When we went in to sign the papers with Scotiabank the representative was trying to offer us all sorts of different products. We ended up taking the unsecured LoC offer as it was offered at P + 1.3 (so 4%). Our main bank is RBC and we have an unsecured LoC with them as well however we're paying P + 2.75 there so I'll be using this as a bargaining chip to get that down with the threat of moving banking to Scotiabank (not that I *really* want to do that because it's a huge PITA).
[OP]
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Apr 21, 2004
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booblehead wrote:
Oct 19th, 2015 12:55 pm
btw, I have virtually all banking & investing activities with TD, except credit card.

For sure, OP should shop around.
Yeah, with RBC it used to be prime + 2% after a few years out of school. I think I have been rated a higher risk. :)
Member
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Oct 21, 2004
497 posts
33 upvotes
National - P+1
Scotia - P + 2.7
CIBC - P+3.25

Not sure why I have 3. Regardless I'm not shutting any down.
Sr. Member
Aug 29, 2004
871 posts
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I actually have a fully unsecured (other than me as a borrower) LOC at rbc at prime + 0.25

My HELOC was at prime, and they approved my Uloc at prime + 2.00.

I called up my banker and asked him why they were pricing an additional 200bps into it for collateral risk when I have RE equity and other assets on deposit that more than covers the limits on both. In theory, the security is the same (or better considering I had cash with RBC).

After some back and forth the rate came down. My suggestion is to push it. This is also the only time relationship has helped at the bank.
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Sep 21, 2007
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Winnipeg
Prime + 2.25. - BMO.
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Newbie
Feb 28, 2008
80 posts
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Td prime +0.5 secured (meaning hplc)
And prime +2% unsecured

Cibc prime+1 unsecured
Member
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Sep 1, 2013
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Mississauga
I only have one, opened relatively recently. My first line of credit. TD Prime + 2.99%

After seeing some of the rates here, though, I may go in to try and negotiate it down a bit.
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