Personal Finance

RBC lowered my LOC interest - I'm shocked!

  • Last Updated:
  • Aug 16th, 2019 4:49 pm
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[OP]
Member
Jun 28, 2011
330 posts
74 upvotes
VANCOUVER

RBC lowered my LOC interest - I'm shocked!

No, that's not a typo. I have been moving my business away from RBC for the past few years and just have a basic day to day savings account, LOC and a credit card with them. (oldest credit card so I'd like to keep it)
Every so often, I'll do a transaction just so they don't de-activate my accounts. I looked at the interest rate for my LOC and I was surprised to see they reduced it. I don't know when they reduced the rate but it went from over 8% to 5.94%. Not that I'm complaining and I have a zero balance on my LOC and no, I didn't ask them.
Has anyone else had a bank lower the LOC interest rate without asking ?
19 replies
Member
Nov 22, 2012
268 posts
212 upvotes
AMHERST
travelandshoppingwoman77 wrote:
Aug 13th, 2019 8:11 pm
No, that's not a typo. I have been moving my business away from RBC for the past few years and just have a basic day to day savings account, LOC and a credit card with them. (oldest credit card so I'd like to keep it)
Every so often, I'll do a transaction just so they don't de-activate my accounts. I looked at the interest rate for my LOC and I was surprised to see they reduced it. I don't know when they reduced the rate but it went from over 8% to 5.94%. Not that I'm complaining and I have a zero balance on my LOC and no, I didn't ask them.
Has anyone else had a bank lower the LOC interest rate without asking ?
Yes. TD lowered my LOC interest rate one year but than raised it the following year. CIBC has also lowered my LOC interest rate.
Penalty Box
User avatar
Jun 24, 2015
2396 posts
505 upvotes
Woodbridge, ON
i havent checked mine in a while but arent they suppost to notify you some how like send you a online message or email or letter in the mail?
Hi
[OP]
Member
Jun 28, 2011
330 posts
74 upvotes
VANCOUVER
jevonb wrote:
Aug 13th, 2019 10:49 pm
Yes. TD lowered my LOC interest rate one year but than raised it the following year. CIBC has also lowered my LOC interest rate.
Interesting. I fully expect RBC will raise the rate at some point. I checked my CIBC LOC and it's still the same.
[OP]
Member
Jun 28, 2011
330 posts
74 upvotes
VANCOUVER
GoodFellaz wrote:
Aug 13th, 2019 10:51 pm
i havent checked mine in a while but arent they suppost to notify you some how like send you a online message or email or letter in the mail?
I never received a letter or notification online.
Sr. Member
Nov 8, 2017
989 posts
481 upvotes
Last April, BMO lowered mine down to prime(3.95) for a year.

Came in handy cause I had some hefty car repairs in May
Deal Expert
Aug 22, 2011
28400 posts
14186 upvotes
Ottawa
Welcome to the club.
Mine was actually 4% a few years ago and gradually increased to 5.95%.
I've never used a dime of it and was never sent a notification for each rate change... somewhere in the fine print, it says it can change without any notification.
Sr. Member
Jan 21, 2018
657 posts
570 upvotes
Vancouver
LOC interest rates go up and down over time with the general interest rate. You may have noticed that interest rates are going down lately. They usually don't adjust LOC rates as quickly as savings rates, and usually there's a lag in favour of the bank if interest rates are going down.
Member
Aug 17, 2013
484 posts
288 upvotes
Toronto
Same but i'd rather be debt free. Haven't used my LOC for a long time. Not interested into going into debt again like my 20's
Penalty Box
User avatar
Jun 24, 2015
2396 posts
505 upvotes
Woodbridge, ON
thanks but can they do this for my Line of Credit too? or do i have to call in and ask
Hi
Member
User avatar
Mar 27, 2010
448 posts
108 upvotes
Montreal
Yep. I got an email from BMO June 20 stating that they're lowering my LOC from 7.22% to 3.95%. I haven't used it in years and only twice since inception decades ago.
Newbie
Jan 11, 2017
20 posts
30 upvotes
RBC gave me a one year promotional rate of 4.94% which expired last month and its now back up to 8.94%. Ive had the LOC for years and havent used it once.
Sr. Member
User avatar
Jul 16, 2012
798 posts
464 upvotes
Vancouver, BC Canada
Gurkha9 wrote:
Aug 14th, 2019 3:10 pm
Yep. I got an email from BMO June 20 stating that they're lowering my LOC from 7.22% to 3.95%. I haven't used it in years and only twice since inception decades ago.
Wow that is even lower than my HELOC which I’ll be needing to use pretty soon for our condo’s special levy Disappointed Face
Deal Addict
Mar 22, 2010
2153 posts
383 upvotes
LOC is variable based on prime rate. We are consistently getting under pressure on overnight rate from BoC so that's why. Your rate is on par with my rate or people I have talked with.

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