HELOC Rate

Usually mortgage only.

Prime +0.5 is pretty common for HELOCs and 1.5 and lower are for mortgages only. Maybe you might see HELOC at prime (2.45) but don't know if anyone has scored that deal before.

Tangerine's normal rate right now for HELOC is 2.35%, but they have a few caveats attached.

sadiya wrote: ↑ Hi There,

When our mortgage came for renewal about a year ago. I used the HELOC and paid off the mortgage. Ever since, I have been only paying the loan interest. Principle amount I have been putting toward my TFSA and RRSP.

My current HELOC rate is 2.95 with RBC and loan interest is approximately $280.

Lately I have been seeing lots of adS regarding mortgage rates as low as 1.5 even .99 in some cases. Just wondering, whether these rates are only for mortgage or I can better rate 2.95 for my HELOC.

Thanks in advance.

You should go with Tangerine perhaps. You have technically paid off home and just HELOC so tangerine should be ok with that otherwise they want mortgage transferred to them as well when you apply for heloc. Their rate is 2.35 (prime-0.1). This should save you ~$57/month in interest if you are paying $280 monthly with RBC. Though keep in mind that there will be ~$1000 initial set up fee as well. You can negotiate with tangerine and see if they are willing to waive it for you although chances are slim since loan balance is not much.

Thanks for all your replies.

Clacker wrote: ↑ Tangerine's normal rate right now for HELOC is 2.35%, but they have a few caveats attached.

They also just gave me a LOC for 2.45%, I was really surprised to get such a low rate on an unsecured line, only 30k but still a great rate.

sadiya wrote: ↑ Hi There,

When our mortgage came for renewal about a year ago. I used the HELOC and paid off the mortgage. Ever since, I have been only paying the loan interest. Principle amount I have been putting toward my TFSA and RRSP.

My current HELOC rate is 2.95 with RBC and loan interest is approximately $280.

Lately I have been seeing lots of adS regarding mortgage rates as low as 1.5 even .99 in some cases. Just wondering, whether these rates are only for mortgage or I can better rate 2.95 for my HELOC.

Thanks in advance.

These rates that you see for 1.5%/0.99% are for high ratio mortgages. They throw in this little piece at the very end of the advertisement and is normally missed.

sircheersa wrote: ↑ They also just gave me a LOC for 2.45%, I was really surprised to get such a low rate on an unsecured line, only 30k but still a great rate.

That's an absolutely amazing ULOC rate!

sadiya wrote: ↑ Hi There,

When our mortgage came for renewal about a year ago. I used the HELOC and paid off the mortgage. Ever since, I have been only paying the loan interest. Principle amount I have been putting toward my TFSA and RRSP.

My current HELOC rate is 2.95 with RBC and loan interest is approximately $280.

Lately I have been seeing lots of adS regarding mortgage rates as low as 1.5 even .99 in some cases. Just wondering, whether these rates are only for mortgage or I can better rate 2.95 for my HELOC.

Thanks in advance.

Why are you paying so much extra interest? Just not to have to pay off principal? With a regular mortgage your payment is probably the same and pays off the principal. You certainly shouldn't be doing this long term. Another big risk is your HELOC rate could rise, possibly dramatically.

fogetmylogin wrote: ↑ Why are you paying so much extra interest? Just not to have to pay off principal? With a regular mortgage your payment is probably the same and pays off the principal. You certainly shouldn't be doing this long term. Another big risk is your HELOC rate could rise, possibly dramatically.

Thanks for your reply
With inflation going up with all this money printing around the world. Value of the dollar is going to worth less. It is good to diversify.

sadiya wrote: ↑ Thanks for your reply
With inflation going up with all this money printing around the world. Value of the dollar is going to worth less. It is good to diversify.

Almost a year later. We are both right. Your mortgage is so small it doesn't matter but HELOC will be north of 5% shortly. Not sure what you diversified in that held it's value though. A big Costco order would have been best investment.