Personal Finance

Did I get a good deal on the LOC?

  • Last Updated:
  • Jun 18th, 2018 11:05 am
[OP]
Deal Addict
Jan 19, 2018
1180 posts
774 upvotes

Did I get a good deal on the LOC?

I opened an unsecured personal line of credit with Scotiabank today and the interest rate is prime + 2.5% which is currently 3.45% + 2.5% = 5.95%. Is this a good deal? Are there lower rates for unsecured personal LOCs out there? Thanks.
7 replies
Deal Fanatic
Nov 24, 2013
6241 posts
2987 upvotes
Kingston, ON
That's a good rate for unsecured, in my experience. Usually the only unsecured ones that are lower are "Professional" lines of credit for people in certain accredited fields.
Deal Expert
Aug 22, 2011
37058 posts
23028 upvotes
Center of Universe
My current rate with RBC is 5.45%.
Newbie
Mar 20, 2010
13 posts
2 upvotes
vancouver
It's a good rate. Securing it typically will have to come in the form of a Homeowners Line of Credit (HOLC) which collateralizes your home. Depending on how much you need, the HOLC could be a better option but otherwise for an unsecured LOC 5.95% is very competitive.
Newbie
Nov 21, 2007
20 posts
11 upvotes
sudbury
Can I ask, Do you have a good history at that bank? Do you know your credit score? I'm at TD right now. I have been a long term customer of theirs. I have less than $3000 in debt, I have $70,000 in Rsps with a broker and $10,000 in Rsps with TD. I don't have a mortgage but I did have one for about 3 years before I sold my house to basically be a gypsy. I only have about $6000 cash and my rate right now is 8.44 which is prime +4.99. I have called them and they have no interest in lowering it at all. I don't owe anything on it so it doesn't really matter but I want to put 10% down on a preconstruction condo in August so I'm trying to find the cheapest way to borrow 40-50k for 1 year. They say the rate is based on "your score" I have no reason to think I have bad credit, in fact I regularly use credit and pay it off in the same month which I thought improves your credit rating. I might try my local credit union but I prefer a national bank as I work in several different provinces. I also might try to see my old boss from when I was a TD employee way back in the day to see if there is some room to relax my rate. I really don't want to deal anywhere else.
Deal Fanatic
Jun 29, 2007
5435 posts
1977 upvotes
Klaps wrote: Can I ask, Do you have a good history at that bank? Do you know your credit score? I'm at TD right now. I have been a long term customer of theirs. I have less than $3000 in debt, I have $70,000 in Rsps with a broker and $10,000 in Rsps with TD. I don't have a mortgage but I did have one for about 3 years before I sold my house to basically be a gypsy. I only have about $6000 cash and my rate right now is 8.44 which is prime +4.99. I have called them and they have no interest in lowering it at all. I don't owe anything on it so it doesn't really matter but I want to put 10% down on a preconstruction condo in August so I'm trying to find the cheapest way to borrow 40-50k for 1 year. They say the rate is based on "your score" I have no reason to think I have bad credit, in fact I regularly use credit and pay it off in the same month which I thought improves your credit rating. I might try my local credit union but I prefer a national bank as I work in several different provinces. I also might try to see my old boss from when I was a TD employee way back in the day to see if there is some room to relax my rate. I really don't want to deal anywhere else.
TD is really sticking it to you. Shop around. I am sure you can get a lower rate. Unsecured LOC 5.45% or even 5.95% are good rates. Check National Bank. They used to or still does offer bank prime to certain professionals. I have something like 6.03% at BMO. Rarely use it.
Deal Expert
Aug 22, 2011
37058 posts
23028 upvotes
Center of Universe
Klaps wrote: Can I ask, Do you have a good history at that bank? Do you know your credit score? I'm at TD right now. I have been a long term customer of theirs. I have less than $3000 in debt, I have $70,000 in Rsps with a broker and $10,000 in Rsps with TD. I don't have a mortgage but I did have one for about 3 years before I sold my house to basically be a gypsy. I only have about $6000 cash and my rate right now is 8.44 which is prime +4.99. I have called them and they have no interest in lowering it at all. I don't owe anything on it so it doesn't really matter but I want to put 10% down on a preconstruction condo in August so I'm trying to find the cheapest way to borrow 40-50k for 1 year. They say the rate is based on "your score" I have no reason to think I have bad credit, in fact I regularly use credit and pay it off in the same month which I thought improves your credit rating. I might try my local credit union but I prefer a national bank as I work in several different provinces. I also might try to see my old boss from when I was a TD employee way back in the day to see if there is some room to relax my rate. I really don't want to deal anywhere else.
I've had my LOC for well over a decade and the rate was as low as 4%, until the last few years.
I didn't negotiate the rate, as it was RBC who initially offered me the LOC, having been their customer since I was a kid.
Member
May 13, 2009
325 posts
468 upvotes
Ottawa, ON
That's a good deal.

I'm also with Scotiabank, and my secured is 3.95, and my unsecured line of credit is 5.40. I have everything with them though (mortgage, etc). Lately rates went up slightly. So you're not going to get much better than 5.95 for unsecured unless you get a better credit rating.

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