Personal Finance

Need help with Home equity line of credit

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  • Apr 29th, 2016 3:10 pm
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[OP]
Sr. Member
Jul 2, 2013
695 posts
183 upvotes
Aurora

Need help with Home equity line of credit

Hello all, td has offered me prime +.65% (3.35%) for a home equity line of credit. To avoid any lawyer+appraisal fees, I am to withdraw and maintain a $50,000 balance for 3 months. These lawyer+appraisal fees are upwards of $800!
so i am thinking of maintaining the 50k balance in a checking or savings account for the 3 months, after 3 months I am supposedly going to get the lawyer+appraisal fees refunded. Will it then be safe to say I can deposit the unused balance back into the heloc acount?
I only need $20,000 at the moment for some renovation. What would the interest accrued be for $50,000 for 3 months (3.35%) in comparison to the $800 lawyer+appraisal fees. Would I save money?

I hopes this makes sense
Thank you for any advise
8 replies
Deal Addict
Jul 28, 2012
1028 posts
449 upvotes
Trois-Rivières, QC
lehmanr wrote: Hello all, td has offered me prime +.65% (3.35%) for a home equity line of credit. To avoid any lawyer+appraisal fees, I am to withdraw and maintain a $50,000 balance for 3 months. These lawyer+appraisal fees are upwards of $800!
so i am thinking of maintaining the 50k balance in a checking or savings account for the 3 months, after 3 months I am supposedly going to get the lawyer+appraisal fees refunded. Will it then be safe to say I can deposit the unused balance back into the heloc acount?
I only need $20,000 at the moment for some renovation. What would the interest accrued be for $50,000 for 3 months (3.35%) in comparison to the $800 lawyer+appraisal fees. Would I save money?

I hopes this makes sense
Thank you for any advise
In all fairness, since you already need $20,000, you might as well compare what the interest would be on the extra portion ($30,000).
$30,000 x 3.35% annual rate / 12 months x 3 months = $251.25

If you still wish to calculate for $50,000
$50,000 x 3.35% annual rate / 12 months x 3 months = $418.75
[OP]
Sr. Member
Jul 2, 2013
695 posts
183 upvotes
Aurora
airodyssey wrote: In all fairness, since you already need $20,000, you might as well compare what the interest would be on the extra portion ($30,000).
$30,000 x 3.35% annual rate / 12 months x 3 months = $251.25

If you still wish to calculate for $50,000
$50,000 x 3.35% annual rate / 12 months x 3 months = $418.75
Yes you are indeed correct. I would be paying "extra" interest on $30k. Still a much better savings over paying $800 if I borrow under 50k.
I called PC financial and they offered me prime +.5% but would only offer me a max of $26k which is good enough. They charge $150 to set it up but I will have to open a pc bank account. I would really like to do all of this with TD and not have to go to the hassle of getting a heloc from a different bank to get a better rate or to save on closing costs. Will TD honor PC financial deal?
Deal Fanatic
Nov 22, 2015
5830 posts
5344 upvotes
lehmanr wrote: Yes you are indeed correct. I would be paying "extra" interest on $30k. Still a much better savings over paying $800 if I borrow under 50k.
I called PC financial and they offered me prime +.5% but would only offer me a max of $26k which is good enough. They charge $150 to set it up but I will have to open a pc bank account. I would really like to do all of this with TD and not have to go to the hassle of getting a heloc from a different bank to get a better rate or to save on closing costs. Will TD honor PC financial deal?
Highly doubtful. Doesn't hurt to ask though
Deal Fanatic
Jun 29, 2007
5043 posts
1680 upvotes
lehmanr wrote: Hello all, td has offered me prime +.65% (3.35%) for a home equity line of credit. To avoid any lawyer+appraisal fees, I am to withdraw and maintain a $50,000 balance for 3 months. These lawyer+appraisal fees are upwards of $800!
so i am thinking of maintaining the 50k balance in a checking or savings account for the 3 months, after 3 months I am supposedly going to get the lawyer+appraisal fees refunded. Will it then be safe to say I can deposit the unused balance back into the heloc acount?
I only need $20,000 at the moment for some renovation. What would the interest accrued be for $50,000 for 3 months (3.35%) in comparison to the $800 lawyer+appraisal fees. Would I save money?

I hopes this makes sense
Thank you for any advise
Do you currently have a mortgage with TD now or is your property clear titled? Are you in Toronto area?

kiz5 (GTA) from cibc can do heloc at bank prime.

cibc-line-credit-offer-prime-0-gta-only-1948035/
[OP]
Sr. Member
Jul 2, 2013
695 posts
183 upvotes
Aurora
Speedy1 wrote: Do you currently have a mortgage with TD now or is your property clear titled? Are you in Toronto area?

kiz5 (GTA) from cibc can do heloc at bank prime.

cibc-line-credit-offer-prime-0-gta-only-1948035/
My mortgage is with TD I'm north of the city in York region.
I dont think I have $150k equity.
Home is worth 450k mortgage balance is at $260k
Deal Fanatic
Jun 29, 2007
5043 posts
1680 upvotes
lehmanr wrote: My mortgage is with TD I'm north of the city in York region.
I dont think I have $150k equity.
Home is worth 450k mortgage balance is at $260k
Sorry, I didn't read or understand your situation. Contact kiz5 and geese howard (here at RFD) and see if they can help you.
TD typically gives you a collateral mtg so I am not sure why there is legal fees now for the heloc. It's a new purchase?
[OP]
Sr. Member
Jul 2, 2013
695 posts
183 upvotes
Aurora
Speedy1 wrote: Sorry, I didn't read or understand your situation. Contact kiz5 and geese howard (here at RFD) and see if they can help you.
TD typically gives you a collateral mtg so I am not sure why there is legal fees now for the heloc. It's a new purchase?
Is what a new purchase?
Deal Fanatic
Jun 29, 2007
5043 posts
1680 upvotes
lehmanr wrote: Is what a new purchase?
Did you just buy a house? TD typically gives you a collateral mtg and the only major benefit of a collateral mtg is if you need additional funds in future and if you qualify for the additional funds, there would be no legal fees since the collateral mtg is registered for a higher amount than what TD initially gives you.

So if you already have an existing TD collateral mtg, I am not sure why there is new legal fee for the heloc.

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