Personal Finance

Cheapest Line of Credit

  • Last Updated:
  • May 17th, 2010 10:19 am
[OP]
Newbie
Oct 18, 2007
1 posts
Markham

Cheapest Line of Credit

Hi,

Any idea of the best line of credit deal in Canada?

So far, my best rates are:

Prime (2.25%) + 1% = 3.25% with TD (secured)
Prime (2.25%) + 2% = 4.25% with Royal Bank (unsecured)

I wonder if some other banks offer LC @ prime only.

Thanks :)
3 replies
Deal Fanatic
User avatar
Feb 7, 2008
5752 posts
685 upvotes
Ottawa
viva wrote:
May 13th, 2010 10:21 am
Hi,

Any idea of the best line of credit deal in Canada?

So far, my best rates are:

Prime (2.25%) + 1% = 3.25% with TD (secured)
Prime (2.25%) + 2% = 4.25% with Royal Bank (unsecured)

I wonder if some other banks offer LC @ prime only.

Thanks :)
What is your profession?
Sr. Member
User avatar
Nov 7, 2004
781 posts
48 upvotes
Vancouver
your best bet is to go to the bank you deal with most and have the strongest relationship with.

Many factors come into play when they decide what type of interest rate you are going to get on your LOC.

******* hit the nail on the head with the main factors they take into consideration.

The biggest factor, as you can already see, is whether it is secured or unsecured...with secured always giving you a much lower rate.

TD's posted rate for the HELOC is Prime + 1.00% and there's is usually a bit of discretionary discount available just like any mortgage. But taking all factors into consideration, they may go as low as Prime (if say its a $1M+ HELOC and customer has strong relationship with the bank) or a small discount of Prime - 0.75 or Prime - 0.80% if the person has zero relationship with the bank and the person helping you wants to get you locked in...

If you're interested in finding out what you can get, simply ask :) But you're always going to get a more favourable answer if you are willing to go through an application.
Newbie
User avatar
Feb 18, 2007
90 posts
2 upvotes
BC
This is a great thread indeed.

At one bank I know, they have a drop down menu field that assigns a rate based on your credit rating status - no messing around based on other factors.

But at one credit union, I get prime plus 1. It seems like the banks have less ability to make a deal. I would bet, though, that HELOC's are always the LOCs that one can get a good deal on - they are backed by real estate...

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