Personal Finance

Please share your Unsecured Line of Credit interest rates and lenders

  • Last Updated:
  • Sep 1st, 2017 9:32 am
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Newbie
Jul 15, 2011
5 posts
2 upvotes
BURNABY
Scotiabank $10k @ 4.9% so prime + 2.2%
Penalty Box
Aug 2, 2010
10797 posts
2100 upvotes
PC Financial Unsecured $50K which i have had since they opened 15+ years ago - Prime + 2.5%
Deal Guru
User avatar
Aug 8, 2012
10198 posts
3788 upvotes
BC
bewiseman wrote:
Oct 28th, 2016 10:08 am
ace604 wrote:
Oct 28th, 2016 1:29 am
Anyone with an IB account can tap their margin as a virtual "LOC" for essentially prime minus 0.7%.

https://www.interactivebrokers.com/en/index.php?f=1595

Not a line of credit at all, but if you aren't using margin for investing and have a high balance of investments, why borrow from the bank at 4.7% when you can borrow from IB at 2% :)
This is very true, but be careful. For every $ you borrow from you margin account, you reduce your purchasing power by an average of $/0.3 = $3.33. Good rate, by the way. iTrade is prime PLUS 1.25%
Exactly. This is why I suggested it if you aren't using the margin. If you are using it, unless you have a lot of margin on your margin (is that a tautology? :)) then you shouldn't use it up as an LOC ;)
I guess it's not a tautology because I said the same thing twice with the SAME word - LOL.

Anyways, ya ... don't play games with margin just to save a couple percent on an LOC loan ... but I am sure there are some people out there with $100's of K of margin available and yet borrowing $10 or $20k from an LOC at 4.7% to do a home reno. Why not use $20k of your $200k of margin at only 2%?!
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Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
Member
Dec 27, 2007
320 posts
81 upvotes
ace604 wrote:
Oct 28th, 2016 1:29 am
Anyone with an IB account can tap their margin as a virtual "LOC" for essentially prime minus 0.7%.

https://www.interactivebrokers.com/en/index.php?f=1595

Not a line of credit at all, but if you aren't using margin for investing and have a high balance of investments, why borrow from the bank at 4.7% when you can borrow from IB at 2% :)
I have been doing this for a few years now with great success!
Yes, you can't beat IB's lending rates Smiling Face With Open Mouth
Member
Jul 1, 2006
237 posts
82 upvotes
ace604 wrote:
Oct 28th, 2016 1:29 am
Anyways, ya ... don't play games with margin just to save a couple percent on an LOC loan ... but I am sure there are some people out there with $100's of K of margin available and yet borrowing $10 or $20k from an LOC at 4.7% to do a home reno. Why not use $20k of your $200k of margin at only 2%?!
I guess the only real concern using margin vs a LOC would be getting called on it. But I suppose if you had the room on your LOC in the event of a margin call, you could always transfer the money from the LOC on short notice.

While not as good as IB, BMOIL has pretty good margin rates if you are in the Gold Star category (at least compared to the other big banks I've looked at as well as Questrade):
https://www.bmo.com/self-directed/fees- ... types/fees

FWIW, I have never used BMOIL, so I have no idea if it's good/bad/ugly etc.

I know lots of people swear by IB, and started going through the process to get an account setup. I had some questions for them, and they *never* responded. While I don't often need support, I like to know that it will be there when I do. I cancelled my application at the point.
Deal Addict
May 15, 2013
1174 posts
181 upvotes
Montreal
RBC

Credit Limit : $ 10,000.00
Interest Rate : 6.69%
Deal Addict
User avatar
Oct 4, 2004
3711 posts
570 upvotes
Vancouver
Does anyone have experience with reallocating credit between accounts at Scotiabank, specifically with their LoC? Generally speaking, some banks allow you to shift credit between acccounts, like MBNA, where you can move more credit into your 0% BT account and then close out the another account.

While trying to convince me to open a new Scotiabank Amex Gold card with them, they said that I could shift the credit to my Scotialine account if I ever decided to close the account since I already had an Amex Gold account. It was just that I was pre-approved with a $300 bonus and FYF, again, and he told me to use the pre-approved limit towards my LoC at a later date. I don't know if he was just lying, didn't know what he was talking about, or telling the truth, in which case I could easily re-allocate and double my LoC which is a pretty good deal at the rate I'm getting.
Deal Addict
Nov 24, 2013
4043 posts
1100 upvotes
Kingston, ON
lhsonic wrote:
Oct 30th, 2016 8:54 am
Does anyone have experience with reallocating credit between accounts at Scotiabank, specifically with their LoC? Generally speaking, some banks allow you to shift credit between acccounts, like MBNA, where you can move more credit into your 0% BT account and then close out the another account.

While trying to convince me to open a new Scotiabank Amex Gold card with them, they said that I could shift the credit to my Scotialine account if I ever decided to close the account since I already had an Amex Gold account. It was just that I was pre-approved with a $300 bonus and FYF, again, and he told me to use the pre-approved limit towards my LoC at a later date. I don't know if he was just lying, didn't know what he was talking about, or telling the truth, in which case I could easily re-allocate and double my LoC which is a pretty good deal at the rate I'm getting.
I forget their term for it, but I closed out a Scene Visa that I didn't need and reallocated the limit to my LOC. Unsecured debt restructuring?
Deal Addict
May 22, 2003
2176 posts
955 upvotes
Vancouver
WTF...RBC emails me saying I'm "pre-approved" for unsecured LOC at 9.89%, lol. I guess I'll go in-branch.
Deal Addict
Aug 24, 2016
1773 posts
852 upvotes
Jermyzy wrote:
Jan 11th, 2017 4:23 pm
WTF...RBC emails me saying I'm "pre-approved" for unsecured LOC at 9.89%, lol. I guess I'll go in-branch.
Face Screaming In Fear wow what a great deal! Jump on it quick before they change their mind! Face With Tears Of Joy
Deal Fanatic
May 29, 2006
8237 posts
1280 upvotes
side question, has anyone with higher rates ever had a rate drop by the bank, or do you have to demand/ask for a lower rate?

i have 7% with BMO, is there any chance one day they will lower that to 5% for example?
[OP]
Deal Expert
User avatar
Apr 21, 2004
39535 posts
8898 upvotes
rocking23nf wrote:
Jan 12th, 2017 3:21 pm
side question, has anyone with higher rates ever had a rate drop by the bank, or do you have to demand/ask for a lower rate?

i have 7% with BMO, is there any chance one day they will lower that to 5% for example?
I think you need to walk to a branch and discuss what assets/services you have with them.

They will not lower over the phone or via secure messaging.
[OP]
Deal Expert
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Apr 21, 2004
39535 posts
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Since RFD changes the forum version, I had not kept up with the thanks yous. :)
Jr. Member
May 13, 2009
105 posts
16 upvotes
Ottawa, ON
juniorkid wrote:
Jun 17th, 2016 9:44 am
Didn't realize this thread existed until I posted this info in another one. Here's my info:

I'm with Scotiabank:

Secure LoC: Prime (2.70) + 1.25 = 3.95%
Unsecure LoC: Prime (2.70) + 1.25 = 3.95%
Unsecure LoC: Prime (2.70) + 2.20 = 4.90% @ 10K (attached to Visa front end - I think I've used this once)
Unsecure LoC: Prime (2.70) + 2.70 = 5.40% @ 15K

I didn't negotiate as I rarely use them, but they are there in case we need them. The times we used them, we paid them off in under a year. e.g. Kitchen Reno

The last 2 are really old and I just don't use them. Scotiabank I guess likes to give me LoC that I use every now and then?!? I think if I ever had a big expense e.g. house reno, I would ask for consolidation and a better rate, but for now, there's no requirement.
January 2017 update:

*Secure LoC: Prime (2.70) + 0.5 = 3.20% (with Visa attached to front end) - lowered from 3.95% by visiting branch.
Unsecure LoC: Prime (2.70) + 1.25 = 3.95%
Unsecure LoC: Prime (2.70) + 2.20 = 4.90% @ 10K (attached to Visa front end - I think I've used this once)
Unsecure LoC: Prime (2.70) + 2.70 = 5.40% @ 15K

Scotiabank really loves to give out Visa cards attached to Lines of credit.
Member
Feb 21, 2010
365 posts
62 upvotes
Scarborough
CIBC unsecured @ p+1
Bmo unsecured @ p+3
RBC unsecured @ p + 5

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