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  • Apr 28th, 2016 9:32 am
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[OP]
Member
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May 22, 2004
476 posts
16 upvotes

Secured LoC

I want an LoC just for emergency purposes. My bank is offering LoC at 2.2% and up to 100K. I think it's an HELOC. I plan to buy another place in a couple of years and not sure how it'll affect my ability to get another mortgage down the road. If I don't use the LoC, does it still limit the amount of money I can borrow?
11 replies
Sr. Member
Mar 1, 2014
663 posts
755 upvotes
The LOC, if not used, doesn't affect your borrowing down the road. No bank will offer any kind of LOC at 2.2%. Is that a typo? HELOC rate of 3.2% (P+0.5%) is normal.
fidoguydo wrote: I want an LoC just for emergency purposes. My bank is offering LoC at 2.2% and up to 100K. I think it's an HELOC. I plan to buy another place in a couple of years and not sure how it'll affect my ability to get another mortgage down the road. If I don't use the LoC, does it still limit the amount of money I can borrow?
[OP]
Member
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May 22, 2004
476 posts
16 upvotes
Okay that's good to know. I was told prime minus 0.5 via cibc. Getting my appraisal this week.
Newbie
Mar 24, 2016
5 posts
Cibc is offering prime-0.5% (but only temporary until Nov 2016) then it goes back up to prime+0%. It is a heloc. I just signed up for it.
[OP]
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May 22, 2004
476 posts
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I think they mentioned to me about lawyer/appraisal fees (~$500 total), were you able to get them to waive it?
rrdeals wrote: Cibc is offering prime-0.5% (but only temporary until Nov 2016) then it goes back up to prime+0%. It is a heloc. I just signed up for it.
Newbie
Mar 24, 2016
5 posts
They waived the appraisal fee only, but had to pay the lawyer part of it ( Approx $300)
Newbie
Mar 24, 2016
5 posts
May be my first post, but I took the prime+0% to cibc and they said they could offer the prime-0.5% temporarily until Nov2016. Which is obviously a better deal.
Deal Expert
Aug 2, 2001
16886 posts
7178 upvotes
rrdeals wrote: May be my first post, but I took the prime+0% to cibc and they said they could offer the prime-0.5% temporarily until Nov2016. Which is obviously a better deal.
Wouldn't it depend what your rate is AFTER the promotional period? This is what you should be most concerned with because, as you have seen, there will most likely be some fees involved if you plan to "churn" HELOCs when their promo offer expires.
Newbie
Mar 24, 2016
5 posts
As stated in my previous post... it's prime-0.5% until Nov, then prime+0% afterwards. I can't see how that would be worse than prime+0% from the start.

I actually only wanted prime+0% and they said they could offer a better deal.
Jr. Member
Dec 17, 2012
112 posts
15 upvotes
Vaughan
Is there a specific branch that is offering this?

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