Personal Finance

Please share your Unsecured Line of Credit interest rates and lenders

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  • Mar 17th, 2024 9:57 am
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Deal Expert
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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).
Thread Summary
LOC that can be used as checking bank accts

Code: Select all

        Positive balance possible?
        |    Cost of cheques
        |    |      Debit card access for purchases & ATM
        |    |      |     Interac e-Transfers possible? / Fee for this?
        |    |      |     |          Routing info available (for PADs/PACs)
        |    |      |     |          |    Can pay via bill payment?
LOC     |    |      |     |          |    |        Notes
--------+----+------+-----+----------+----+--------+-----------------------
CIBC    yes  $0.00  yes   yes/$0.00  yes  no*      *Except from CIBC or Simplii
TDCT    yes  $0.00  yes   yes/$.5-$1 yes  yes      $0.50 fee for Interac e-Transfers up to $100, $1.00 otherwise
Simplii yes  $0.00  yes   yes/$0.00  yes  no
Scotia  yes  $0.00  Visa* no/na      no   yes      *ATM access via 'credit/other' (Visa cash advance), not 'chequing/savings' for POS use (can use as Visa for POS)
BMO     yes  $?     MC+   no/na      no   yes^     +ATM access via MC cash advance (free?)    ^as a MasterCard bill payment (ask for virtual MC LOC #)
RBC     no   $X     ?     ?/$?       ?    ?
2600 replies
Member
Mar 4, 2008
363 posts
271 upvotes
Gatineau
Prime + 2% with Scotia = 4.7%
Credit score around 790
Jr. Member
Jul 15, 2008
136 posts
6 upvotes
Toronto
alanbrenton wrote: 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.
Deal Expert
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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.
Deal Expert
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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.
Deal Expert
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Jul 30, 2007
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Toronto
btw, I have virtually all banking & investing activities with TD, except credit card.

For sure, OP should shop around.
Newbie
Nov 26, 2014
5 posts
1 upvote
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).
Deal Expert
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Apr 21, 2004
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booblehead wrote: 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. :)
Sr. Member
Oct 21, 2004
543 posts
94 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
952 posts
271 upvotes
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.
Deal Guru
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Sep 21, 2007
13044 posts
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...
Prime + 2.25. - BMO.
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Jr. Member
Feb 28, 2008
152 posts
46 upvotes
Td prime +0.5 secured (meaning hplc)
And prime +2% unsecured

Cibc prime+1 unsecured
Deal Addict
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Sep 1, 2013
1338 posts
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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.
Deal Expert
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Apr 21, 2004
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After refinancing is completed, I'm definitely going back to the drawing board with the lending department for these two LOC's. :twisted:
Deal Addict
Mar 22, 2010
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RBC - Prime + 3% only 10K though. Planning to close this by end of year and re-negotiate rate.
Deal Expert
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Apr 21, 2004
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I'm going to print this thread and show it to RBC and TD! :)
Deal Addict
Mar 19, 2005
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Toronto
alanbrenton wrote: After refinancing is completed, I'm definitely going back to the drawing board with the lending department for these two LOC's. :twisted:
It's all a part of the game for a long while now. They more than likely have data to predict how many people will switch out, argue for a lower rate, or do nothing when they receive said letters. Sadly, the latter option is probably the common option and hence why they would continue to do this. You'd be surprised at the number of people who simply renew a mortgage through mail at the same interest rate when it's possible to negotiate it to lower rates.

Anyhow, RBC unsecured LOC at prime + 1% for me.
alanbrenton wrote: I'm going to print this thread and show it to RBC and TD! :)
Better off browsing available LOC options at other banks.

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