Personal Finance

Please share your Unsecured Line of Credit interest rates and lenders

  • Last Updated:
  • Oct 21st, 2019 8:03 pm
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Member
Dec 5, 2009
310 posts
143 upvotes
snowhite445 wrote:
Jan 1st, 2019 2:46 pm
Must be a Canadian university or USA or can be from anywhere?
Must be Canadian and I think it's limited to Medicine/Dentistry, maybe MBA/law. When I asked about US programs 5 years ago it was $200k with co-signer.
Sr. Member
May 14, 2010
962 posts
77 upvotes
Halifax
I just received BMO ULOC for $20,000 at prime plus 4.03%
Deal Addict
Dec 12, 2009
3473 posts
1317 upvotes
Toronto
ahlaker wrote:
Jun 5th, 2017 1:42 pm
The reality is that once the lender has a collateral charge on your house, all of your debt is an in-substance HELOC!
Can anybody explain this?

Received another notice from CIBC - pre-approved for $10G @ CIBC Prime + 3.5% = 7.45%. Bolded fine print reads "Credit Bureau Consent". Thinking of taking it this time around although I don't need it. We have a joint HELOC but the mortgage will be paid off this year. Thoughts? Suggestions?
If you are getting different credit scores from different sources please post them here:
Comparing the consumer accessible credit scores
Sr. Member
User avatar
Jul 30, 2005
697 posts
236 upvotes
Downtown Toronto
BMO unsecured LOC $75K limit, 6.61% (Prime + 2.66%)
Deal Fanatic
Nov 24, 2013
5641 posts
2244 upvotes
Kingston, ON
ROYinTO wrote:
Jan 12th, 2019 11:59 am
Can anybody explain this?
When you have a collateral charge mortgage (a design many banks use now), not only is your mortgage debt secured against your property, all your “unsecured” debt with that lender is technically secured by your property too, up to the amount the charge is registered for anyway.

Say you purchase a house with a $400,000 mortgage at a bank that uses a collateral charge. They’ll either register the collateral charge for the $400k, or any amount you consent to up to 120% of the value of the home. They market this as making it simpler if you want to borrow against your equity (with them) later. It also means, however, that the charge secures all debts you have with that bank against your house up to that charge amount. If your mortgage with... say it’s CIBC, is down to $360,000, but you also have $10,000 on your credit card with them, and $20,000 on an LoC, they’re all secured by that $400,000 collateral charge. If you default on your LoC, they can come after your house.
Member
Mar 7, 2008
436 posts
104 upvotes
Leask
I have a unsecured LOC with RBC for prime + 1.8%

How to get a lower rate?
Member
Nov 24, 2015
300 posts
186 upvotes
Toronto, ON
THINKPOD wrote:
Jan 12th, 2019 3:17 pm
I have a unsecured LOC with RBC for prime + 1.8%

How to get a lower rate?
That's a very good rate for an unsecured LOC.

I haven't seen a lower rate for unsecured LOC unless you qualify for a professional LOCs that are offered by Scotia, CIBC, NBC etc
Sr. Member
Sep 19, 2012
899 posts
754 upvotes
Calgary
Mike15 wrote:
Jan 12th, 2019 2:47 pm
When you have a collateral charge mortgage (a design many banks use now), not only is your mortgage debt secured against your property, all your “unsecured” debt with that lender is technically secured by your property too, up to the amount the charge is registered for anyway.
Interestingly this does not seem to be the case with a CIBC collateral charge. It was 100% the case with NBC and the collateral loan I had with them.

https://www.cmidocs.com/ca/cibc/collate ... tario.page# has the details for CIBC.
https://www.nbc.ca/content/dam/bnc/en/. ... f18955.doc shows details for NBC.

CIBCs collateral charge language says "The amounts owing under each agreement will only be secured by this mortgage if the agreement indicates that the debt is secured by your property". So a CIBC credit card, for example, won't be covered by that collateral charge. If the CIBC ULOC has no language stating that the collateral charge is being used, then you have a "normal" ULOC.

NBC language says: "Your Mortgage is given to secure the repayment of all existing and future Debts" and Debts is defined as "money we agree to lend you".

It is clear from CIBC terms that the collateral charge only secures other debt you have with CIBC if you agree to do so in that other debt agreement. NBC makes no such distinction so any and all debt (whether or not specified in an agreement) becomes secured by your mortgage.
Deal Fanatic
Nov 24, 2013
5641 posts
2244 upvotes
Kingston, ON
ahlaker wrote:
Jan 13th, 2019 1:34 pm
Interestingly this does not seem to be the case with a CIBC collateral charge. It was 100% the case with NBC and the collateral loan I had with them.

https://www.cmidocs.com/ca/cibc/collate ... tario.page# has the details for CIBC.
https://www.nbc.ca/content/dam/bnc/en/. ... f18955.doc shows details for NBC.

CIBCs collateral charge language says "The amounts owing under each agreement will only be secured by this mortgage if the agreement indicates that the debt is secured by your property". So a CIBC credit card, for example, won't be covered by that collateral charge. If the CIBC ULOC has no language stating that the collateral charge is being used, then you have a "normal" ULOC.

NBC language says: "Your Mortgage is given to secure the repayment of all existing and future Debts" and Debts is defined as "money we agree to lend you".

It is clear from CIBC terms that the collateral charge only secures other debt you have with CIBC if you agree to do so in that other debt agreement. NBC makes no such distinction so any and all debt (whether or not specified in an agreement) becomes secured by your mortgage.
Interesting. Off the top of my head I think TD’s language is much more in line with NBC’s.
Sr. Member
Apr 14, 2017
866 posts
407 upvotes
DT Calgary
THINKPOD wrote:
Jan 12th, 2019 3:17 pm
I have a unsecured LOC with RBC for prime + 1.8%

How to get a lower rate?
Wow, how did you get such an amazing rate!
Deal Addict
Dec 12, 2009
3473 posts
1317 upvotes
Toronto
Mike15 wrote:
Jan 12th, 2019 2:47 pm

When you have a collateral charge mortgage (a design many banks use now), not only is your mortgage debt secured against your property, all your “unsecured” debt with that lender is technically secured by your property too, up to the amount the charge is registered for anyway.
Thanks,
I knew this was the case for TD but didn't think it applied to all. As you said many banks - I see that @ahlaker has provided the clarification I was looking for.
ahlaker wrote:
Jan 13th, 2019 1:34 pm
Interestingly this does not seem to be the case with a CIBC collateral charge. It was 100% the case with NBC and the collateral loan I had with them.
...
CIBCs collateral charge language says "The amounts owing under each agreement will only be secured by this mortgage if the agreement indicates that the debt is secured by your property". So a CIBC credit card, for example, won't be covered by that collateral charge. If the CIBC ULOC has no language stating that the collateral charge is being used, then you have a "normal" ULOC.
So before signing with CIBC, I'll be double checking the wording of the contract. Probably a good idea to pull the HELOC contract and review it as well. It makes no sense to agree to a higher rate if it falls under the same terms. I was considering future credit needs that would not be tied to the house since the mortgage will be paid off soon. A free and clear kinda thing.
If you are getting different credit scores from different sources please post them here:
Comparing the consumer accessible credit scores
Newbie
May 12, 2018
42 posts
15 upvotes
YYZ
Currently have a ULOC with CIBC.

Seems like the other top lenders for ULOCs are TD, BMO and possibly RBC?

Looking to get another 20-30k ULOC, have good credit and income, what would me best bets be?
Sr. Member
User avatar
Jul 28, 2010
519 posts
434 upvotes
Montreal
Received this notice offer for a ULOC from Scotia last November.
Credit Limit: $10k
Interest Rate: Scotiabank Prime +2.45% = 6.4%
Accept by: January 15, 2019
Newbie
May 12, 2018
42 posts
15 upvotes
YYZ
Kestral wrote:
Jan 12th, 2019 1:41 pm
BMO unsecured LOC $75K limit, 6.61% (Prime + 2.66%)
How did you get 75k? I thought ULOC's are capped at 50k?
Member
Mar 7, 2008
436 posts
104 upvotes
Leask
No, is not one of those professional loc.

I had a mortgage with RBC at the time, so that helps.

I do have amazing credit rating...

I was hoping to get better rate but it is apparent to me bank is tightening up so this prime + 1.8% is actually really good.

HSBC is offering me prime + 2% just last week, so it is definitely still doable to get close to prime + 1.8%. I am a Premier client at hsbc.

I recall getting a large loc helps negotiate a lower rate.

Also, I am one of those that actually use loc in the past and never miss a payment. I guess they love me for this lol

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