Personal Finance

Using TD line of credit like chequing account?

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  • Dec 7th, 2017 3:08 pm
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[OP]
Penalty Box
User avatar
Feb 21, 2013
344 posts
41 upvotes
Yukon

Using TD line of credit like chequing account?

I have the td all inclusive account. Would like to close it and use the line of credit as a chequing account. Is this possible? Can my mortgage payments come out of it? Can i use the ATM and withdraw from the loc?
26 replies
Deal Fanatic
User avatar
Apr 29, 2008
5867 posts
1602 upvotes
Montreal
No it's not possible, since it's not the intended use...

Please shut down this thread, nothing to see here... :razz: :cheesygri
Member
Aug 3, 2013
323 posts
107 upvotes
Durham
Short answer: yes.

TD loc offers free cheques, you can have your pay deposited to it, assign the account as your "savings" when doing a debit purchase.

Just make sure you don't leave thousands of dollars in it as it might trigger a review, i.e. when it's payday, transfer out the money to your EQ savings, which you should have by now.

Required reading:
banks-loc-account-can-best-used-free-ch ... t-1463101/
[OP]
Penalty Box
User avatar
Feb 21, 2013
344 posts
41 upvotes
Yukon
Can i pay the mortgage out of the line of credit account?
Newbie
Sep 17, 2012
16 posts
1 upvote
Woodbridge
Only problem I've found using a TD credit line like this is features like mobile cheque deposit don't work with it.
Newbie
Aug 2, 2015
18 posts
7 upvotes
Birdton, NB
MrFwny wrote:
Jul 4th, 2016 7:43 pm
Only problem I've found using a TD credit line like this is features like mobile cheque deposit don't work with it.
Yes, but it is possible to mobile deposit into a savings account, so only a minor inconvenience.
Deal Expert
Mar 25, 2005
20966 posts
1908 upvotes
hipster wrote:
Jul 4th, 2016 7:42 pm
Can i pay the mortgage out of the line of credit account?
Any PAD will work.
Deal Fanatic
Jul 1, 2007
7898 posts
751 upvotes
hipster wrote:
Jul 4th, 2016 7:42 pm
Can i pay the mortgage out of the line of credit account?
A mortgage at another bank, probably yes. You provide the account numbers/void cheque to the other bank and they'll link it up and they could care less if the payments are actually coming from a LOC. TD on the other hand will probably not allow it because it's both misusing an account as well as questionably risky to them to have debt payments coming out of more debt.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Guru
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Aug 8, 2012
10198 posts
3814 upvotes
BC
MrFwny wrote:
Jul 4th, 2016 7:43 pm
Only problem I've found using a TD credit line like this is features like mobile cheque deposit don't work with it.
causation wrote:
Jul 4th, 2016 9:37 pm
Yes, but it is possible to mobile deposit into a savings account, so only a minor inconvenience.
This.

Or... mobile deposit should be going to somewhere nice like EQ for 2.25% anyways ;)
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Newbie
Aug 2, 2015
18 posts
7 upvotes
Birdton, NB
Thalo wrote:
Jul 4th, 2016 10:15 pm
A mortgage at another bank, probably yes. You provide the account numbers/void cheque to the other bank and they'll link it up and they could care less if the payments are actually coming from a LOC. TD on the other hand will probably not allow it because it's both misusing an account as well as questionably risky to them to have debt payments coming out of more debt.
TD allows mortgage payments out of a LOC. Risky or not, the opportunity to collect interest twice is likely the overriding factor here. Risk is controlled during mortgage and LOC opening.
Deal Fanatic
Feb 15, 2006
6898 posts
1484 upvotes
Toronto
hipster wrote:
Jul 4th, 2016 1:55 pm
I have the td all inclusive account. Would like to close it and use the line of credit as a chequing account. Is this possible? Can my mortgage payments come out of it? Can i use the ATM and withdraw from the loc?
You can certainly use it as a chequing account. I've been doing that for years.

You can certainly pay mortgage or anything else out of it. You can set up recurring payments.
In fact, you can set up a HELOC, Home Equity LOC, which is your mortgage. You pay down this mortgage any day any time, whenever you have some money.

Can withdraw from ATM. Being doing that for years.
Deal Addict
User avatar
Sep 9, 2007
2086 posts
327 upvotes
do you pre-deposit money in it and withdraw?

otherwise, wouldnt you be paying the interest since interest is calculated from when the funds are drawn and paid monthly?
Moderator
User avatar
Mar 23, 2004
36496 posts
3332 upvotes
Markham
c_snapper wrote:
Jul 5th, 2016 11:45 am
do you pre-deposit money in it and withdraw?

otherwise, wouldnt you be paying the interest since interest is calculated from when the funds are drawn and paid monthly?
Yes, make sure the account is always in debit balance and no interest would be charged.
「もし、奇跡を起こせたら……」
Sr. Member
Jan 27, 2015
921 posts
350 upvotes
Edmonton, AB
angel_wing0 wrote:
Jul 5th, 2016 11:56 am
Yes, make sure the account is always in debit balance and no interest would be charged.
You mean "credit" balance, correct? Debit on a LOC increases it, whereas Credit on a LOC decreases it.

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