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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Aug 8, 2012
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CanRulez wrote:
Feb 9th, 2017 7:05 am
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.
Well ya, *any* withdrawal while you are still using margin is going to complicate your accounting, but it's not impossible to track your withdrawals.

If you have $400k shares but only $300k of equity and you decide to sell $10k of something to do a reno - guess what? That's not a cash withdrawal either :)

Pretty easy to just make a spreadsheet, add $10k to it and the date of withdrawal, and track how much of your margin interest was spent in that and don't include that in your deductions.

IIRC, 2% on $140k and 1.5% on over is what the current rates are at IB. That crushes a normal LOC or HELOC or even a variable rate mortgage.

It's definitely an option worth taking note of.
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Sep 21, 2007
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Random question. Is it better to go in without a balance owing on your LOC or with one to reduce the rate?
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Deal Addict
Nov 26, 2011
1419 posts
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Ottawa
Unsecured Line of Credit at 5.34% with BMO
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Apr 20, 2009
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Ottawa
d60 wrote:
Feb 9th, 2017 8:58 pm
CIBC 3.7% $15000
prime +1%? that is very good! i got P+ 5,25%. I definitely have to call them!
Newbie
Feb 9, 2017
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RBC Prime +1% 10,000 Student
BMO Prime +3% 10,000 Preapproved
TD Prime +4% 10,000 Preapproved
Newbie
Oct 12, 2015
3 posts
Vancouver, BC
I have an unsecured LOC at TD for $50k (as does my wife for the same amount at same rate). We have arranged to pay the LOC down over a seven year term..essentially turning it into loan. Because of this we got a teaser rate of 2.99% for the first year. Subsequent years would be prime+2 (4.7%). But each year we've renewed the 2.99% rate and topped up LOC back up to $50k each. LOC is used for investments..it's a great cheap loan. Reading what others have said here..this may sound to good to be true, but it's no joke.
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May 3, 2015
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Penticton, BC
faken wrote:
Feb 9th, 2017 9:04 pm
Random question. Is it better to go in without a balance owing on your LOC or with one to reduce the rate?
Answer to this question as well as an update to my posts on Page 13 (about a week ago). I don't think balance or no balance on your LOC will have much impact. It will come down to your credit history, your income average within the last 2-4 years, your provable assets and your history with the bank you are making requests with. I had a 1 hour meeting with TD Loan Advisor and presented them my finances listed earlier. She knew what I was going to ask as I sent a note along before the meeting outlining I was going to request Prime + 2% on an unsecured LOC. Loan advisor was sympathetic and agreed with me but explained that I screwed myself 10 years with my irresponsible spending. She explained that they will reduce the rate from P + 9.55% to P + 5.65% on my $15,000 unsecured LOC. However, she threw me this bone, sign a secured LOC (HELOC on my $295K house) and they would give me $100K at P+ 0.5%. I will accept this for now as things moved in the right direction. However, I will be open to options with other companies.

Doesn't matter how good you are with money now, even after you learned from your hard mistakes. Those irresponsible years will really come back to bite you. But get back on track, you will always have to pay, but always ask while presenting a solid case if you have one.
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Sep 21, 2007
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MisterMercenary wrote:
Feb 12th, 2017 1:29 am
Answer to this question as well as an update to my posts on Page 13 (about a week ago). I don't think balance or no balance on your LOC will have much impact. It will come down to your credit history, your income average within the last 2-4 years, your provable assets and your history with the bank you are making requests with. I had a 1 hour meeting with TD Loan Advisor and presented them my finances listed earlier. She knew what I was going to ask as I sent a note along before the meeting outlining I was going to request Prime + 2% on an unsecured LOC. Loan advisor was sympathetic and agreed with me but explained that I screwed myself 10 years with my irresponsible spending. She explained that they will reduce the rate from P + 9.55% to P + 5.65% on my $15,000 unsecured LOC. However, she threw me this bone, sign a secured LOC (HELOC on my $295K house) and they would give me $100K at P+ 0.5%. I will accept this for now as things moved in the right direction. However, I will be open to options with other companies.

Doesn't matter how good you are with money now, even after you learned from your hard mistakes. Those irresponsible years will really come back to bite you. But get back on track, you will always have to pay, but always ask while presenting a solid case if you have one.
Thanks!
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insanesnowman wrote:
Feb 11th, 2017 7:43 pm
I have an unsecured LOC at TD for $50k (as does my wife for the same amount at same rate). We have arranged to pay the LOC down over a seven year term..essentially turning it into loan. Because of this we got a teaser rate of 2.99% for the first year. Subsequent years would be prime+2 (4.7%). But each year we've renewed the 2.99% rate and topped up LOC back up to $50k each. LOC is used for investments..it's a great cheap loan. Reading what others have said here..this may sound to good to be true, but it's no joke.
Wow, your unsecured LOC has better rate than my HELOC (prime+1%). I have asked TD to reduce it (to prime or prime+0.5%) many times but it's still the same. The reason was they said I am not using it anyway. It was prime many years ago but TD raised it to prime+1% and I didn't bother to argue since I wasn't using it
Sr. Member
Dec 1, 2007
513 posts
51 upvotes
St Thomas, ON
TD has given me 8.65% for $25K

BMO just offered me 5.35% for $10K. I took that offer to TD and am waiting to see if they'll adjust that to 5.35% too. Advisor said they'll ask for an exception but won't say for sure if it'll go through.
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Nov 22, 2015
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rangeroad07 wrote:
Apr 4th, 2017 8:24 pm
Damn I'm getting fleeced at 5.7 @ TD and 6.14 @ RBC...:(
That's 'getting fleeced'? That's P+3% and P+3.47% respectively. It's actually a very good rate... likely the best you'll get at any institution without negotiation/threatening to move your investments/mortgage etc.
Newbie
Oct 12, 2011
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I was reading further back in thread people getting +1 and +2 without any negotiation...?
Newbie
Nov 3, 2010
89 posts
I have 10k with Scotia at prime plus 3.25
I have another 25K with Scotia at prime plus .50
I have 10k with TD at prime plus 4.5
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