Personal Finance

TD unsecured LOC raises rate 3% after 20 years!

  • Last Updated:
  • May 10th, 2018 10:57 am
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Deal Addict
May 12, 2014
1329 posts
724 upvotes
Montreal
slotscanada wrote:
Feb 13th, 2018 7:39 am
bS lines like their cost of borrowing has increased, etc.
How do you know this it not true?
Newbie
Sep 20, 2015
75 posts
34 upvotes
Ottawa, ON
ksgill wrote:
Feb 14th, 2018 3:12 pm
So let me get this straight, you are borrowing someone else's money and you are upset that they are asking you to pay a higher rate? I find the sense of entitlement amusing.
Whether people are upset or not - these are business deals and you can't attach emotions to it. My point was mainly from business perspective that if one bank offers better rate and then only your current bank try to match that rate, I would not stick with my current bank because my bank does not value my business so it is better to move where you get some value.
[OP]
Deal Addict
User avatar
Sep 10, 2003
1558 posts
125 upvotes
Hamilton
So let me get this straight. You’re so rich and wealthy you never have to ever borrow money? Otherwise if you have had to you are ok with your lender doubling their rate with 30 days notice with no reaso. Or explanation provided? Glad you’re doing so well in life that a 50% interest increase wouldn’t bother you!
Deal Addict
Jan 30, 2012
1341 posts
552 upvotes
TORONTO
slotscanada wrote:
Feb 13th, 2018 9:55 am
Yeah me too, I threatened to move Waterhouse, TFSAs and RRsps and bank accounts. They don’t care.
So, take your business elsewhere. When TD's investment staff ask why are you moving your investments tell them why. I'm sure the free market will sort this out.
FrancisBacon wrote:
Feb 14th, 2018 3:20 pm
How do you know this it not true?
If a bank's cost of borrowing went up it would be publicly known soon after:
The Canadian prime rate is well known.
The LIBOR ( https://en.wikipedia.org/wiki/Libor ) is well known.
The current yield on bank bonds is well known.
Member
Dec 15, 2015
430 posts
233 upvotes
Toronto
It the increase is bad and your credit is so good, take your business somewhere else. We live in a free'ish' market.
[OP]
Deal Addict
User avatar
Sep 10, 2003
1558 posts
125 upvotes
Hamilton
TheMaterial wrote:
Feb 14th, 2018 4:18 pm
It the increase is bad and your credit is so good, take your business somewhere else. We live in a free'ish' market.
Yup that’s the plan long term. Switching chequing, savings and investment accounts at the snap of a finger doesn’t quite work. As mentioned in the original post the point of this was to give others a heads up!
Newbie
Feb 13, 2018
1 posts
1 upvote
TD is a piece of work. 3% is extreme. So the Bank of Canada's prime rate is 1.25 TD has their "prime" at 3.45. And now on top of the 3.25 percent they are increasing it another 2.7 %. So how is TD different than a loan shark?
Deal Fanatic
Mar 24, 2008
5502 posts
1542 upvotes
Toronto
slotscanada wrote:
Feb 14th, 2018 3:46 pm
So let me get this straight. You’re so rich and wealthy you never have to ever borrow money? Otherwise if you have had to you are ok with your lender doubling their rate with 30 days notice with no reaso. Or explanation provided? Glad you’re doing so well in life that a 50% interest increase wouldn’t bother you!
No, I am not rich but I also don't have illusions about how the world works. They don't owe you an explanation for raising your rates unless it's in the contract they signed with you (hint: it's not in there).
Illegitimi non carborundum
[OP]
Deal Addict
User avatar
Sep 10, 2003
1558 posts
125 upvotes
Hamilton
ksgill wrote:
Feb 14th, 2018 7:16 pm
No, I am not rich but I also don't have illusions about how the world works. They don't owe you an explanation for raising your rates unless it's in the contract they signed with you (hint: it's not in there).
I guess you must have missed the part where I had this rate for 20 years. I’m can’t imagine how a 50% increase in your interest wouldn’t bother you!

Anyways to those not trolling and living under littl3 bridges... TD credit called back las5 night to advise that they wouldn’t entertain the the adjustment appeal, and wished me well switching. Again citing increased borrowing costs, lol. After 28 years all positive relationship. It will be such a pain moving everything, but I’m more about principle than the money.
Deal Fanatic
Feb 29, 2008
5466 posts
1200 upvotes
I would switch too. air understand it’s a business but the banks are opportunists. Why help them help themselves. I’d switch. They figure most people won’t because as Canadians we willfully put up with BS.
Newbie
Aug 31, 2013
18 posts
12 upvotes
TORONTO
Not sure why you have to switch all your accounts? Just open a LOC somewhere else. Then move the funds over and close your TD one. Or better yet, if you have any real estate, open a HELOC and your rate will be much better.
Member
Jan 4, 2017
258 posts
104 upvotes
Tommycoupons wrote:
Feb 13th, 2018 12:37 pm
Welcome to the Credit Trap!
Sucker enough people in and convince them to max out to their eyeballs and then jack up the rates dramatically.
It's only a trap if you're a sucker. Been there, done that. Can't blame the banks or evil gubment. Personal responsibility, the end.

That said, I can't say I'm surprised re: TD LOC rates. Vote with your wallet, which it seems like you're doing.
[OP]
Deal Addict
User avatar
Sep 10, 2003
1558 posts
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Hamilton
trozman666 wrote:
Feb 15th, 2018 6:16 am
Not sure why you have to switch all your accounts? Just open a LOC somewhere else. Then move the funds over and close your TD one. Or better yet, if you have any real estate, open a HELOC and your rate will be much better.
To me it’s principal, you can’t screw me on my line of credit but expect me to keep my 100k investments with you I. The other hand. TD has been really disappointing as of lately with the whole January webbroker fiasco, crazy wait times lately, etc. But I don’t expect any of the big banks are any better. Have to start exploring credit unions maybe which enters another realm of issues.
Deal Fanatic
Mar 24, 2008
5502 posts
1542 upvotes
Toronto
slotscanada wrote:
Feb 15th, 2018 5:04 am
I guess you must have missed the part where I had this rate for 20 years. I’m can’t imagine how a 50% increase in your interest wouldn’t bother you!

Anyways to those not trolling and living under littl3 bridges... TD credit called back las5 night to advise that they wouldn’t entertain the the adjustment appeal, and wished me well switching. Again citing increased borrowing costs, lol. After 28 years all positive relationship. It will be such a pain moving everything, but I’m more about principle than the money.
I don't understand how what I am saying is trolling. As predicted, they asked you to take your business elsewhere. In terms of letting rate increases bother me, I have always said that all banks are basterds and don't care about you. You shouldn't care about them either and vote with your money. That still doesn't change the fact that they don't owe you an explanation for the rate increase.
Illegitimi non carborundum

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