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
Apr 20, 2009
59 posts
35 upvotes
Ottawa
+5.25%
CIBC
$30K

never used it but seems to be the highest around...
have to talk to them
Sr. Member
Nov 14, 2010
809 posts
81 upvotes
Not a CRA, not bank employee, not student, no mortgage, not GTA, no loans (just monthly credit card charges paid in full on 2x $5000 limit cards. Monthly CC spending ~$1500 total). I'm 31 and opened first credit card account when I was 19.

Just got unsolicited offer from PCF (where I have daily driver CC + chequing account + decent savings which I just transferred to take advantage of Tangerine offer).

Offered: $15,000 at CIBC prime + 2.75% (prime 2.70%, 5.45% total). Plus 20,000 PC points ($20).
Newbie
May 3, 2015
6 posts
5 upvotes
Penticton, BC
Been searching the web for an angle to renegotiate my unsecured LOC at TD Canada Trust which is Prime + 9.55%. I know I am getting the shaft. I am both disgusted after reading all your posts here but also grateful to TD Canada Trust for helping me dig myself out of a hole and helping me get where I am now. However, I am in the position to review my options and shift institutions if I have to.

15 years ago I was 14K in debt not including student loans, going nowhere like a lot of single men do and I was fortunate to land a job in a retail grocery conglomerate that led to a store supervisor (not manager) position that now pays about 60K/yr with a lot of perks. I paid off most of my bad debt about 10 years ago.
- I have a student loan with 1800 left to go with NSLSC
- I am 2 months from paying off a 3 year $15K RRSP loan @ 5%
- I have a 15K ULOC with $4800 left on it at the P+9.55%.
- I have 2 Mastercards and a Visa each with 10K. My primary is one of the Mastercards with a 1% cashback that gets about $1500 spent on it every month, paid on time
- I saved like Ebenezer because no one would give me a mortgage, and bought a house cash in 2010 for 195K and the assessment shows my taxes in 2017 will be based off a property worth 295K
- as of today $8000 cash in TD bank accounts
- $77K grown from about 40K in TD WebBroker investments, 10K in TFSA's and 67K in self directed RRSPs

Although I haven't got my Equifax mail yet, what are your opinions that I could get the ULOC lowered? I know there are mutilple paths that could be followed and everyone plays the game differently. I am kind of stubborn about not going with a secured LOC and am hunting for a way to get it down to a preferable P + 2-ish%. Thanks.
Deal Addict
Jan 21, 2014
1959 posts
452 upvotes
got offer from BMO pre-approved $10K at ~6% but didn't take it
Deal Guru
Aug 22, 2011
14575 posts
3903 upvotes
Ottawa
MisterMercenary wrote:
Feb 7th, 2017 1:15 am
Been searching the web for an angle to renegotiate my unsecured LOC at TD Canada Trust which is Prime + 9.55%. I know I am getting the shaft. I am both disgusted after reading all your posts here but also grateful to TD Canada Trust for helping me dig myself out of a hole and helping me get where I am now. However, I am in the position to review my options and shift institutions if I have to.

15 years ago I was 14K in debt not including student loans, going nowhere like a lot of single men do and I was fortunate to land a job in a retail grocery conglomerate that led to a store supervisor (not manager) position that now pays about 60K/yr with a lot of perks. I paid off most of my bad debt about 10 years ago.
- I have a student loan with 1800 left to go with NSLSC
- I am 2 months from paying off a 3 year $15K RRSP loan @ 5%
- I have a 15K ULOC with $4800 left on it at the P+9.55%.
- I have 2 Mastercards and a Visa each with 10K. My primary is one of the Mastercards with a 1% cashback that gets about $1500 spent on it every month, paid on time
- I saved like Ebenezer because no one would give me a mortgage, and bought a house cash in 2010 for 195K and the assessment shows my taxes in 2017 will be based off a property worth 295K
- as of today $8000 cash in TD bank accounts
- $77K grown from about 40K in TD WebBroker investments, 10K in TFSA's and 67K in self directed RRSPs

Although I haven't got my Equifax mail yet, what are your opinions that I could get the ULOC lowered? I know there are mutilple paths that could be followed and everyone plays the game differently. I am kind of stubborn about not going with a secured LOC and am hunting for a way to get it down to a preferable P + 2-ish%. Thanks.
There's really no strategy to negotiate a loc as a normal customer.
You just have call in and ask for a lower rate.

Looks like those with the lower rates, are either in a professional field or have grandfathered rates (which is my case).
Deal Addict
Jul 23, 2014
1053 posts
225 upvotes
Toronto, ON
Opened a joint account with the wife when we got married (used her name to open) @ TD.

They gave her unsecured LoC for 30k @ 4.70 (prime + 2%) right off the bat.

While I've been a TD customer for 20 years and my unsecured LoC is only $15.5k @ 7.69 (prime +4.99%).

blargh
Newbie
Oct 7, 2013
99 posts
40 upvotes
Westmount
I'm pre-approved for 15K at BMO.. prime + 2.7%. meh.
Newbie
May 3, 2015
6 posts
5 upvotes
Penticton, BC
RFD6482 wrote:
Feb 7th, 2017 11:34 am
Opened a joint account with the wife when we got married (used her name to open) @ TD.

They gave her unsecured LoC for 30k @ 4.70 (prime + 2%) right off the bat.

While I've been a TD customer for 20 years and my unsecured LoC is only $15.5k @ 7.69 (prime +4.99%).

blargh
What factors might be there? What do you do for living? And your wife? What are your incomes? Does she have more cash/assets than you? How is her credit history? I know I am getting mighty personal with my questions, but I don't have family or friends or my wife with any financial savvy at all and I come from a rough background and I am straying from the OP. My closest friends come to me for advice and are too scared to even open a TFSA or RRSP account even when I tell them I will go with them and help them get a fat tax return. They don't have credit cards (I know in today's world eh!?) so I have learned the most on redflagdeals.com forums in the last year than anywhere else believe it or not. I'm just trying to figure out how to get the best advantage for the very limited finances I have, trying to dig a better future ultimately for my kid.

I have an appointment tomorrow at 11am with TD so we'll see how far I get.
Deal Addict
Jul 23, 2014
1053 posts
225 upvotes
Toronto, ON
MisterMercenary wrote:
Feb 7th, 2017 11:09 pm
What factors might be there? What do you do for living? And your wife? What are your incomes? Does she have more cash/assets than you? How is her credit history? I know I am getting mighty personal with my questions, but I don't have family or friends or my wife with any financial savvy at all and I come from a rough background and I am straying from the OP. My closest friends come to me for advice and are too scared to even open a TFSA or RRSP account even when I tell them I will go with them and help them get a fat tax return. They don't have credit cards (I know in today's world eh!?) so I have learned the most on redflagdeals.com forums in the last year than anywhere else believe it or not. I'm just trying to figure out how to get the best advantage for the very limited finances I have, trying to dig a better future ultimately for my kid.

I have an appointment tomorrow at 11am with TD so we'll see how far I get.
A lot of it depends on your credit history. Since i got married to my wife, we sold both our homes and bought, moved into one. We basically cleared out all our debts and a small amount of debt that we did carry stayed on my accounts. So I can see how they gave her a better rate since she was debt free (outside of the mortgage, no LoC, CC debt) and also the breadwinner heh.

I remember when my dad told me when I was young, credit is king in North America. So dont ever damage your credit rating.... how very true.
Deal Addict
Jun 29, 2007
3584 posts
753 upvotes
BMO me - $50k at P+2%
Wife - $75k at P+2%
Had it for at least 10 yrs. Rarely use it.
Used to be lower, bank crisis caused it to go up, bank crisis was over so we asked BMO to lower it. After few yrs they lowered it a bit but still not as low as original rate.
Used to bank with BMO a lot but very little with them now.
Member
Nov 11, 2006
427 posts
120 upvotes
mkl38s wrote:
Feb 7th, 2017 6:48 am
got offer from BMO pre-approved $10K at ~6% but didn't take it
I was offered 10K at 5.35% with BMO. So prime + 2.65.

My TD LOC's are Prime + 1.0. It actually used to be Prime + 0.5, and I'm still annoyed they raised it several years back.
Member
Nov 11, 2006
427 posts
120 upvotes
Gursk wrote:
Nov 17th, 2015 4:41 pm
Might want to consider a Margin account with TD Direct Investing. You can transfer in & out of it just like their ULOC.

TD Investing rates are lower than the stuff TD bank is offering, starting at 4.25% and even cheaper if you're a President's Account holder (those rates are sweeet!)

https://www.td.com/ca/products-services ... /rates.jsp
They will need to do a credit check to open a Margin account, and have some investments to put in it, but they are surprising easy to get. Essentially the margin loans are secured by the stocks/funds you are holding in the account.

Different set of risks to consider with a margin account though (dreaded margin call). A bit more info here: http://www.td.com/to-our-customers/tdhe ... =b0a21f55d
I know I'm responding to a post from 2015 but thought it would be helpful to share. I decided to check the margin interest rates across several discount brokerages and found out that BMO has one of the best rates out there.
Member
Nov 11, 2006
427 posts
120 upvotes
ace604 wrote:
Oct 28th, 2016 5:06 pm
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%?!
Not only that. If you use your margin to purchase stocks in your account, then the margin interest is definitely tax deductible.

However, once you start tinkering with your margin and use the funds to buy your next gadget, TV, speakers or stuff like that, then you're essentially going to make it 99% more difficult to compartmentalize what is tax deductible and what is not. In fact, CRA may disallow it altogether.

If you're not going to deduct your interest expenses altogether, then the matter is moot, but the majority do.
Newbie
Nov 16, 2013
79 posts
15 upvotes
Qu
I have 2.9% - it's a special rate from Desjardins for certain professionals.

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