Personal Finance

Please share your Unsecured Line of Credit interest rates and lenders

  • Last Updated:
  • Oct 6th, 2017 2:18 pm
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Jr. Member
Oct 12, 2011
112 posts
36 upvotes
Anyone else out there with updated LOC negotiations from banks? I was really pushed hard on the RBC LOC saying I wouldn't come close to finding anything better, and now the media is saying all the banks have been strong-arming clients.

RBC $33,000 @ 6.14%
TD $25,000 @ 5.7%

I have good credit, no bankruptcies, defaults, or missed payments. Last checked I think it was 770s or something via Equifax.
Newbie
May 8, 2014
90 posts
41 upvotes
Toronto, ON
Due to an overzealous financial advisor, she used some kind of buydown/discretion to give us a $90k unsecured LOC at Prime + 0.5% (this is a staff rate, and the proper unsecured LOC rate for staff is Prime + 1%.

After about 90 days, the rate spontaneously increased from Prime + 0.5% to Prime + 1.0%. She claimed it was a teaser rate - sadly for the bank, our signed contract said nothing of the sort. I fought it, and so long as I'm staff, it'll be Prime + 0.5%; I believe it goes to Prime + 3 or 4 if I'm no longer an employee.

Generally speaking, unsecured LOC rates are likely commensurate with the risk entailed (e.g. credit cards (unsecured credit) have astronomical rates, I imagine due to a higher probability of default).
A semi-competent prole, having worked in mortgages at a "Big Bank" for a day or two.
Jr. Member
Oct 12, 2011
112 posts
36 upvotes
Hmm, maybe I should become a bank teller? Anybody else out there?
Member
Mar 30, 2009
345 posts
42 upvotes
Windsor
uberbaumer wrote:
Apr 5th, 2017 9:09 am
Due to an overzealous financial advisor, she used some kind of buydown/discretion to give us a $90k unsecured LOC at Prime + 0.5% (this is a staff rate, and the proper unsecured LOC rate for staff is Prime + 1%.

After about 90 days, the rate spontaneously increased from Prime + 0.5% to Prime + 1.0%. She claimed it was a teaser rate - sadly for the bank, our signed contract said nothing of the sort. I fought it, and so long as I'm staff, it'll be Prime + 0.5%; I believe it goes to Prime + 3 or 4 if I'm no longer an employee.

Generally speaking, unsecured LOC rates are likely commensurate with the risk entailed (e.g. credit cards (unsecured credit) have astronomical rates, I imagine due to a higher probability of default).
Sounds about right. That'd be the official reasoning anyway. In actuality it's probably also more about yield. I had my ULOC increased from P + 1 to P + 4.65 about 3 months after I actually carried a balance on it, despite the fact I still had a credit score over 760. But this was around the same time everyone was reporting their ULOCs spiked and fixed mortgages first went below 3% (so with mortgages barely beating inflation targets, they go for yield on unsecured products).
Member
Mar 31, 2008
280 posts
125 upvotes
Calgary
I'm getting bent over with $20,000 @ 8.03% at RBC

I called to ask for a reduction and she said that was standard intro rates, I asked if I can get off intro rates since I have 6 products with them for 8 years.

She offered me HELOC for $50,100 @2.7% till January 2018 then 3.7% from then on. She approved me right away and i signed the documents then she noticed that my folks names are also on my mortgage, now they want to put them through the ringer with full credit checks and proof of income. Not sure if I'll go through with it.
Sr. Member
Jul 30, 2005
517 posts
65 upvotes
Scarborough
I've got a $75,000 unsecured LOC with BMO at 4.75%.

Curious to know, is this good, and can I do any better?
Sr. Member
Jul 30, 2005
517 posts
65 upvotes
Scarborough
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'm with BMO and previously my LOC was about 7%.

I went into the branch and dealt with my account manager and she managed to get me down to 4.75% (with Prime being 2.7% right now that means Prime + 2.05%).
Deal Addict
Jun 29, 2007
3669 posts
798 upvotes
Kestral wrote:
Apr 15th, 2017 5:09 pm
I've got a $75,000 unsecured LOC with BMO at 4.75%.

Curious to know, is this good, and can I do any better?
My wife ($75k) and I ($50k) have ULOC at BMO at P+2% (so 4.7%) for past ~6 - 8 yrs. Only used it once or twice in past few yrs for a week here and there for bridge financing.

We have very little business with BMO now.

Think it used to be P+1%, then they raised it on us due to financial crisis to like P+3 or 4%. We had to push them, a few yrs after financial crisis, to reduce it but they wouldn't reduce it back to original rate.
Member
User avatar
May 17, 2012
313 posts
102 upvotes
Montreal
Ok reading this thread and seeing the rates people get is very irritating.

I'm in Quebec, suburbs of Montreal, am in my 30s and have a very stable job that pays a very decent salary and have excellent credit (close to 800 score when I shopped for Mortgage a year ago or so). I don't understand how people here get the rates they are getting on unsecured LOCs, there must be something i am missing.

I currently have a 15 000 unsecured LOC with Desjardins at 7.7% (prime + 5) and have asked several times for this to be lowered if they want me to use it ; they will NOT budge on the rate, have asked 4 times already in the past few years. My mortgage is also with them but I don't have enough paid off of it for a HELOC to be an option (and I don't want a HELOC anyway). I had called BMO at one point to get an actual quote for an unesecured LOC and was told prime +4 a couple years back.

Where do I need to go, what do I have to say or do to get a prime + 1.5-2% rate ? Do I need to ask for a bigger LOC amount, have multiple products with the bank? It's silly as I would actually use a 5% LOC much more than I do my almost 8% one now so it's their loss really.
Deal Fanatic
User avatar
Apr 29, 2008
5812 posts
1585 upvotes
Montreal
bennyboy84 wrote:
Apr 16th, 2017 7:26 pm
Desjardins
Here is your error, they don't want to offer competitive rate...

I got prime + 2% at TD, had some investments but not that much... don't remember I said anything specific.

Are you part of some professional association, university, or another group?

Desjardins or National Bank has a good LOC rate for CPA professionals for example.
Member
User avatar
May 17, 2012
313 posts
102 upvotes
Montreal
cashinstinct wrote:
Apr 16th, 2017 7:49 pm
Here is your error, they don't want to offer competitive rate...

I got prime + 2% at TD, had some investments but not that much... don't remember I said anything specific.

Are you part of some professional association, university, or another group?

Desjardins or National Bank has a good LOC rate for CPA professionals for example.
Yeah not part of any professional association (PMI.org but doesn't have anything interesting in Canada) and I graduated from University of Montreal... What they have to offer is a credit card with Desjardins for which a portion of your cashback goes to the alumni (!!!) or crappy insurance "deals" at TD and Desjardins ... So no luck.

I guess I'm just surprised that actually telling them "I will close my accounts and move everything somewhere else" and "if you lower my rate, I will actually use my LOC and give you money in interests" has no impact whatsoever. I will simply have to do it (close my accounts) instead of threaten I guess.

Reading the previous posts it seems BMO and maybe CIBC are good options?
Deal Addict
Jun 29, 2007
3669 posts
798 upvotes
Yeah National Bank was offering my professional association members ULOC at bank prime a few yrs ago. Only for very credit worthy borrowers though.

Not sure about now.
Jr. Member
Oct 12, 2011
112 posts
36 upvotes
cashinstinct wrote:
Apr 16th, 2017 7:49 pm

I got prime + 2% at TD, had some investments but not that much... don't remember I said anything specific.
How in the HELL do you get TD to give you prime + 2? I just sat with my bank manager for an hr last week and did not even come close. Great credit, $75k year income, yada yada.
Deal Fanatic
User avatar
Apr 29, 2008
5812 posts
1585 upvotes
Montreal
rangeroad07 wrote:
Apr 18th, 2017 10:24 pm
How in the HELL do you get TD to give you prime + 2? I just sat with my bank manager for an hr last week and did not even come close. Great credit, $75k year income, yada yada.
I got it in 2012. I asked for a Loc, they offered me prime + 2%... it was their first offer.

I have no tricks to share, unfortunately.
Jr. Member
Oct 12, 2011
112 posts
36 upvotes
Ah ok, thx makes sense. I'd be curious what they'd offer you now. Sometimes I wish it was 2012 again..lol

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