Personal Finance

TD unsecured LOC raises rate 3% after 20 years!

  • Last Updated:
  • May 10th, 2018 10:57 am
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Newbie
Oct 5, 2016
34 posts
12 upvotes
I received the same letter from TD a few months ago. I forget what my rate was before but its prime + 3.54% now. That's makes it 6.99 % today. I didn't owe anything on the LOC and
it has been setup for 20 years. As I wanted to borrow some money, that letter prompted me to setup their HELOC product. Right now they have a 6-year fixed rate of 3.47% (I took a 4-year at 3.34%)
or their variable rate is prime + 0.50 % (3.95% today).
[OP]
Deal Addict
User avatar
Sep 10, 2003
1531 posts
114 upvotes
Hamilton
ksgill wrote:
Feb 15th, 2018 6:50 am
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.
And once again I must respectfully disagree. If I’ve been a customer for 28 years and for 20 years you’ve given me a certain rate, I do believe you owe me an explanation as to why you are doubling the fixed rate portion in 30 days notice. I can’t imagine anyone else had this situation they’d just be ok with it, like you suggest you are.

Anyways, the point of this thread from the onset was to simply warn other TD customers that letters are coming out, my experience and the lack of resolution. Maybe it will have saved someone else some time and effort.
[OP]
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User avatar
Sep 10, 2003
1531 posts
114 upvotes
Hamilton
flavious99 wrote:
Feb 15th, 2018 7:44 am
I received the same letter from TD a few months ago. I forget what my rate was before but its prime + 3.54% now. That's makes it 6.99 % today. I didn't owe anything on the LOC and
it has been setup for 20 years. As I wanted to borrow some money, that letter prompted me to setup their HELOC product. Right now they have a 6-year fixed rate of 3.47% (I took a 4-year at 3.34%)
or their variable rate is prime + 0.50 % (3.95% today).
I’d have over 700k$ equity in our home, but I don’t think the lender we have allows back ending of the mortgage for HELOCs, and further in principal I can’t justify giving TD any further business because of what happened after 20 years. The joke in all this is I usually don’t even have a balance on the LOC either, and the 5k i do now will be paid off shortly. It’s all about principal to me, and how you treat a customer of 28 years, worse than a new customer off the street.
Deal Addict
Nov 11, 2004
2881 posts
187 upvotes
Ottawa
I would say get used to it... Interest rates will be moving higher this year, and for the years to come
Hello
Member
Jun 3, 2007
232 posts
4 upvotes
Oakville,ON
So who offers a LOC with a good interest rate nowadays?
Sr. Member
User avatar
Mar 9, 2012
625 posts
222 upvotes
Maybe you just like to complaint, that's still a good rate.
Deal Fanatic
Mar 24, 2008
5503 posts
1539 upvotes
Toronto
slotscanada wrote:
Feb 15th, 2018 7:45 am
And once again I must respectfully disagree. If I’ve been a customer for 28 years and for 20 years you’ve given me a certain rate, I do believe you owe me an explanation as to why you are doubling the fixed rate portion in 30 days notice. I can’t imagine anyone else had this situation they’d just be ok with it, like you suggest you are.

Anyways, the point of this thread from the onset was to simply warn other TD customers that letters are coming out, my experience and the lack of resolution. Maybe it will have saved someone else some time and effort.
What difference would an explanation make? They want to lend you money at a higher rate to increase their profits. If they told you that, would it make you feel better? It's just business, people need to take emotions out of their thinking process and vote with their money i.e. switch lenders instead of wasting their energy trying to fight the banks. They clearly don't care about your business, time to move on to someone who does.

If the situation was reversed and you had $10,000 to invest and TD's rate was 2.5% but another bank offered 3.5%. Would you buy a GIC at TD just because you have banked with them for 28 years? Or are you one of those people who would "escalate" to a branch manager and ask them to match the other bank's rates? What if they said no, would you write them a letter explaining your situation?
Illegitimi non carborundum
Deal Addict
Oct 21, 2012
1123 posts
354 upvotes
Toronto
The big banks may care about certain clients but I am not sure where than line is drawn. I know for sure there is no loyalty for long term customers. If anything, they try and take advantage of them because they know many don't want to go through the hassle of moving.
I wouldn't take it so personally.
Deal Addict
Jul 18, 2016
1958 posts
722 upvotes
ksgill wrote:
Feb 15th, 2018 6:50 am
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.
Ok, that last post of yours was a reasonable response, however your first one about "entitlement", made you sound like a jerk and a troll. The OP is very right to be concerned and upset with such a dramatic increase in interest rate after 20 years.
Deal Fanatic
Mar 24, 2008
5503 posts
1539 upvotes
Toronto
bewiseman wrote:
Feb 15th, 2018 10:14 am
Ok, that last post of yours was a reasonable response, however your first one about "entitlement", made you sound like a jerk and a troll. The OP is very right to be concerned and upset with such a dramatic increase in interest rate after 20 years.
No, it just means that I live in the real world where I don't expect anything from the banks. Concerned or not, they don't want his business if they doubled his interest rate. It is either a sense of entitlement or ignorance to think that they can't change rates with a 30 day notice.

Unrelated point but most LOCs (including HELOCs) are also callable i.e. the bank can demand a payment in full within 30 days regardless of whether you are in default or not. Imagine the horror if that happened ... this is nothing.
Illegitimi non carborundum
Deal Addict
Jul 18, 2016
1958 posts
722 upvotes
ksgill wrote:
Feb 15th, 2018 10:23 am
Unrelated point but most LOCs (including HELOCs) are also callable i.e. the bank can demand a payment in full within 30 days regardless of whether you are in default or not. Imagine the horror if that happened ... this is nothing.
Which is precisely why they're a bad choice to rely on for an emergency fund. Best to keep emergency cash in a high interest savings account of some sort.
Deal Fanatic
Mar 24, 2008
5503 posts
1539 upvotes
Toronto
bewiseman wrote:
Feb 15th, 2018 10:42 am
Which is precisely why they're a bad choice to rely on for an emergency fund. Best to keep emergency cash in a high interest savings account of some sort.
Agreed, you can only depend on yourself when a crisis hits. :)
Illegitimi non carborundum
Member
Nov 8, 2017
494 posts
200 upvotes
I thought mine was high @ prime + 4 @ CIBC

I pretty much use it as an all inclusive chequing anyways, but some months I pay 2-3 bucks in interest
Deal Fanatic
User avatar
May 9, 2009
5371 posts
1165 upvotes
Montreal
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.
Are you going to follow through?

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