Personal Finance

Please share your Unsecured Line of Credit interest rates and lenders

  • Last Updated:
  • Jul 19th, 2018 4:32 pm
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Sr. Member
Feb 21, 2010
593 posts
119 upvotes
Scarborough
got pre-approval from National bank under professional program for $75k @ P + 0.75. Guy is asking me for CHQ account (minimum $10/ month or $2500 in cash balance) and 0$ mastercard at minimum to set up the LOC

Anyone got away from CHQ account requirement. I do not care much about Mastercard requirement, I will be requesting only 500$ maximum limit.
Member
Mar 16, 2011
346 posts
161 upvotes
romeocanada wrote:
Feb 2nd, 2018 10:29 am
got pre-approval from National bank under professional program for $75k @ P + 0.75. Guy is asking me for CHQ account (minimum $10/ month or $2500 in cash balance) and 0$ mastercard at minimum to set up the LOC

Anyone got away from CHQ account requirement. I do not care much about Mastercard requirement, I will be requesting only 500$ maximum limit.
That's not bad at all. Pre-approval means they didn't run a credit check on you?
Sr. Member
Feb 21, 2010
593 posts
119 upvotes
Scarborough
I am sorry, should not have used the word "pre-approval". So to recap, I had asked for Professional LOC, on phone guy asked me details and then based on conversation, he said he will try for $50K at lowest possible rate. I requested 100k at that time. Then after exchange of documents, he came back this week with 75K approval at P + 0.75%. But he also put the CHQ account and Mastercard requirements in the approval.

After I submitted the documents, they pulled my equifax. I got the notification.
chopperE wrote:
Feb 2nd, 2018 3:21 pm
That's not bad at all. Pre-approval means they didn't run a credit check on you?
Newbie
Nov 16, 2010
25 posts
6 upvotes
Burnaby
romeocanada wrote:
Feb 2nd, 2018 4:14 pm
I am sorry, should not have used the word "pre-approval". So to recap, I had asked for Professional LOC, on phone guy asked me details and then based on conversation, he said he will try for $50K at lowest possible rate. I requested 100k at that time. Then after exchange of documents, he came back this week with 75K approval at P + 0.75%. But he also put the CHQ account and Mastercard requirements in the approval.

After I submitted the documents, they pulled my equifax. I got the notification.
Congrats same thing for me basically except I explicitly confirmed that i did not have to sign up for an account nor a credit card.

I haven't actually gone in to finalize yet however (doing so next week) so can't 100% confirm yet.

Guy I spoke to did mention that the professional programs are different slightly depending on accountants/engineers/etc.
Member
Oct 27, 2012
269 posts
62 upvotes
GTA
Since my professional LOC is set to expire, I inquired about getting an unsecured LOC with a few other banks.

First went to TD, where I was approved for a paltry limit of $10,000 at a rate of Prime plus 7.49%! I almost fell out of my chair at that rate.

At CIBC, with professional status as a lawyer, they have a special rate of Prime plus 1%. After giving them my paystub, NOA and employment letter, they approved me for $55,000.

Scotia gave me a pre-approved $30,000 LOC 3 years ago while still a student (I had a $100,000 professional LOC with them at the time too) at Prime plus 2%, and when I asked, they refused to further increase the limit or lower the rate.

I passed on asking National Bank given my experience with their consistent incompetence.

In the end, I signed the papers with CIBC.
Member
Mar 16, 2011
346 posts
161 upvotes
ozzie16 wrote:
Feb 5th, 2018 10:05 am
Since my professional LOC is set to expire, I inquired about getting an unsecured LOC with a few other banks.

First went to TD, where I was approved for a paltry limit of $10,000 at a rate of Prime plus 7.49%! I almost fell out of my chair at that rate.

At CIBC, with professional status as a lawyer, they have a special rate of Prime plus 1%. After giving them my paystub, NOA and employment letter, they approved me for $55,000.

Scotia gave me a pre-approved $30,000 LOC 3 years ago while still a student (I had a $100,000 professional LOC with them at the time too) at Prime plus 2%, and when I asked, they refused to further increase the limit or lower the rate.

I passed on asking National Bank given my experience with their consistent incompetence.

In the end, I signed the papers with CIBC.
Can you tell me more about the CIBC package? Did they require you to have an account or credit card? Also a lawyer here.
Sr. Member
Feb 4, 2010
915 posts
305 upvotes
From my understanding, the interest rates for pre-approved LOC are subject to change unlike a fix rate late - they're not set. I wonder if they lured you with low rate and will increase it so it's inline with the going rate (Simplii is charging 6.XX% + prime - not sure if they're still underwritten by CIBC)?
ozzie16 wrote:
Feb 5th, 2018 10:05 am
Since my professional LOC is set to expire, I inquired about getting an unsecured LOC with a few other banks.

First went to TD, where I was approved for a paltry limit of $10,000 at a rate of Prime plus 7.49%! I almost fell out of my chair at that rate.

At CIBC, with professional status as a lawyer, they have a special rate of Prime plus 1%. After giving them my paystub, NOA and employment letter, they approved me for $55,000.

Scotia gave me a pre-approved $30,000 LOC 3 years ago while still a student (I had a $100,000 professional LOC with them at the time too) at Prime plus 2%, and when I asked, they refused to further increase the limit or lower the rate.

I passed on asking National Bank given my experience with their consistent incompetence.

In the end, I signed the papers with CIBC.
Member
Oct 27, 2012
269 posts
62 upvotes
GTA
chopperE wrote:
Feb 5th, 2018 11:09 am
Can you tell me more about the CIBC package? Did they require you to have an account or credit card? Also a lawyer here.
Not really a package - it's a preferred rate given to members of certain professions. I simply provided them my Law Society card and letter from my firm, and that qualified me for their special rate.

They also gave me an Imperial Service bank card - apparently professionals qualify for IS, but it doesn't come with any real perks.
Jazmina wrote:
Feb 5th, 2018 11:33 am
From my understanding, the interest rates for pre-approved LOC are subject to change unlike a fix rate late - they're not set. I wonder if they lured you with low rate and will increase it so it's inline with the going rate (Simplii is charging 6.XX% + prime - not sure if they're still underwritten by CIBC)?
I don't follow? I've had my Scotiabank unsecured LOC for 3 years and it's been P+2% ever since then - I was just trying to see if they could lower it to P+1%, but they wouldn't unless I signed up for their Professional Package at $25/month. CIBC didn't make me sign up for anything else and I was able to get the P+1 rate.

Of course, banks can change the +X factor at any time (as many did during the financial crisis), but the rate provided by CIBC is not a teaser.
Sr. Member
Feb 4, 2010
915 posts
305 upvotes
ozzie16 wrote:
Feb 5th, 2018 2:41 pm
I don't follow? I've had my Scotiabank unsecured LOC for 3 years and it's been P+2% ever since then - I was just trying to see if they could lower it to P+1%, but they wouldn't unless I signed up for their Professional Package at $25/month. CIBC didn't make me sign up for anything else and I was able to get the P+1 rate.

Of course, banks can change the +X factor at any time (as many did during the financial crisis), but the rate provided by CIBC is not a teaser.
I think I'm mistaken about the interest rates being variable- it seems like Simplii has significantly increased the interest rates on my LOC. I only have the LOC for emergencies and never had to use but I think I might be shopping elsewhere. Customer service with PC Financial/Simplii has gone down considerably. But at any rate it seems like 6-7% + P seems to be the going rate so you got a good deal.
Deal Addict
User avatar
Aug 3, 2009
1714 posts
254 upvotes
Nova Scotia
ozzie16 wrote:
Feb 5th, 2018 2:41 pm
Not really a package - it's a preferred rate given to members of certain professions. I simply provided them my Law Society card and letter from my firm, and that qualified me for their special rate.

They also gave me an Imperial Service bank card - apparently professionals qualify for IS, but it doesn't come with any real perks.
Also a lawyer and your experience perked my interest. I am guessing there was no element of your scenario being business related (e.g. LOC for business purposes)? If there was, I am in a different situation as I would be looking for the LOC for purely personal purposes (I am not private practice). Hoping to see if I can get a similar deal.

edit: seems the details are all here: https://www.cibc.com/en/small-business/ ... aried.html. Free Imperial Service and no-min Investors Edge seem competitive if a low PLOC rate is provided.

Second question for anyone: I imagine these CIBC PLOCs can be jointly applied for with a spouse? I'd like my spouse to have a debit card as well as me for those one-off situations where CC is not accepted.
Last edited by haliwood on Feb 11th, 2018 4:02 pm, edited 1 time in total.
Member
Aug 10, 2008
418 posts
79 upvotes
Just moved my mortgage from TD to First National last week. I had to go in to a TD branch to make my last payment (error in their part) and was told I was eligible for a pre approved LOC with an unsecured rate of 5.45%

My current rate is 6.35 at Scotia on $40,000.
Anything I need to look out for with TD with an LOC. I found them to be shady once I started my mortgage move.
Member
Aug 16, 2013
383 posts
85 upvotes
Toronto
What's the difference between CIBC professional engineers package vs NBC's engineers package? I have P+1 unsecured LOC from NBC on professional package.

I am also thinking to start using my checking account at NBC as TD's monthly fee is pissing me off now.
Sr. Member
Feb 21, 2010
593 posts
119 upvotes
Scarborough
My NBC ULOC is now active. The guy waived bank account requirement but made me get a no annual credit card. I had to pre-authorize payments from my CIBC as there is no way to electronically pay ULOC unless I write a check and deposit it in NBC

Whole process from start to finish is like 2 months.
nova83 wrote:
Feb 2nd, 2018 5:13 pm
Congrats same thing for me basically except I explicitly confirmed that i did not have to sign up for an account nor a credit card.

I haven't actually gone in to finalize yet however (doing so next week) so can't 100% confirm yet.

Guy I spoke to did mention that the professional programs are different slightly depending on accountants/engineers/etc.
Sr. Member
Nov 21, 2008
616 posts
54 upvotes
jmatheson64 wrote:
Feb 11th, 2018 4:02 pm
Also a lawyer and your experience perked my interest. I am guessing there was no element of your scenario being business related (e.g. LOC for business purposes)? If there was, I am in a different situation as I would be looking for the LOC for purely personal purposes (I am not private practice). Hoping to see if I can get a similar deal.

edit: seems the details are all here: https://www.cibc.com/en/small-business/ ... aried.html. Free Imperial Service and no-min Investors Edge seem competitive if a low PLOC rate is provided.

Second question for anyone: I imagine these CIBC PLOCs can be jointly applied for with a spouse? I'd like my spouse to have a debit card as well as me for those one-off situations where CC is not accepted.
fellow lawyer here - for the CIBC LOC, how long is the term for? Would the LOC be withdrawn if I leave the bar? or once you sign up, is it active for X years (and they don't actively verify your status after approval).

Thanks
Member
User avatar
Jun 23, 2017
393 posts
137 upvotes
Toronto, ON
I was offered a uLOC from BMO.

I went in to set it up. I didn't want to open a chequing account only to keep $2,000 in it to avoid monthly $4 fees.

So the only way I get to use my uLOC is to walk up to the counter at a branch during branch open hours, tell them my account # and ask for the cash or deposit to it.

No cheques. No client card. No on-line access. No easy access.

But I do get free printed monthly statements mailed to me to keep be apprised.

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