# Line of Credit Interest Rates



## PoorPablo83 (Feb 8, 2010)

Hi everyone,
I was just curious as to what others have for interest rates on their LoC? I have an unsecured line of credit through TD bank that I used to buy a work vehicle with a few years ago. There is currently just under $2000 left on it. The interest rate is 9.5%. Nearly everyone I have talked to says this is too high and I should get lower. I have no clue how to go about doing this! I would prefer to stay with TD as I have other accounts and a credit card through them.

I am 27, will earn around $47,000 this year, and have no other debts, and don't own RE (yet!).

Thank you!
Paul


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## GeniusBoy27 (Jun 11, 2010)

That's ridculously high. Just go to your banker and ask for a lower interest rate. Just threaten to go to a different bank. The threat is usually sufficient.


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## the-royal-mail (Dec 11, 2009)

I am in the midst of moving my accounts across the country at my bank and they are telling me that my LOC won't carry over automatically and that I have to apply for a new one -- at current rates here. Apparently the rate on my old LOC is prime + 3% and the current rates are higher? I have escalated the request, we'll see.


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## HaroldCrump (Jun 10, 2009)

My bank had told me a few months ago that the going rate for an unsecured, personal LOC ranges between P+2 to P+6, depending on income, credit history, etc.
So yeah 9.5% sounds very high.
Try to negotiate, move your account, or grab the bull by the horns and pay it off with all you got.


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## R.O.V. (May 16, 2010)

I am currently paying P + 3.25 for my unsecured line...soon to have zero balance. I know this is a high rate. I plan on switching to a HELOC and I have an appt. with the manager of my Scotiabank branch tomorrow. I hope to get a much better rate and use the HELOC to make a lumpsum payment on my mortgage. 

I will post my new rate when I negotiate it.


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## lalaland (Oct 17, 2010)

I was offered P+4.3 by TD and P+3.25 by PC on 25k, unsecured. National Bank offers P+1 unsecured for some professionals. Here's the link for engineers.


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## sags (May 15, 2010)

I was told by a TD loans officer that the bank won't offer any loans without the security of a home as collateral. She placed 11 loan requests, including a bank employee and they were all denied for lack of real estate assets. The bank will not even accept a new car as collateral, as it is a declining asset.

Maybe this is just the experience of one loan manager, or she didn't tell me the whole story, but there is no doubt about the banks are tightening up credit approval.

GM had to buy a lender in order to offer financing, because their customers couldn't get bank loans. No loans = no sales.

On the other hand, the loan officer told me that home mortgages are easy to approve. Just have the downpayment and meet the income levels and you are good to go. Even difficult credit situations are accepted.

If what she says is true, the days of waltzing into the banks and making demands for lower interest rates are pretty well gone, unless you have substantial equity in real estate.


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## canadianbanks (Jun 5, 2009)

sags said:


> I was told by a TD loans officer that the bank won't offer any loans without the security of a home as collateral. She placed 11 loan requests, including a bank employee and they were all denied for lack of real estate assets. The bank will not even accept a new car as collateral, as it is a declining asset.


This is very interesting information. The question is what happens if home values start to decline for extended period? Maybe the banks will stop personal lending altogether?


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## Addy (Mar 12, 2010)

And if they are only taking RE as collateral.... what happens if RE values tank? I imagine the banks are thinking this as a 'what if'?


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## wheel (Jun 22, 2010)

Funny you should mention TD mortgages. Gail Vaz-Oxlade has a blog post on TD and their mortgages.
http://gailvazoxlade.com/blog/archives/2230


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## Jungle (Feb 17, 2010)

Yes TD now places a collertal charge against the title on all new and re-newing mortgages. You're foced to pay lawyers fees, as I doubt they will cough the bill. (they didn't with their HELOCs in the past and forced you to use TD lawyers) They are just doing this so you are not inclined to switch lenders when your term is up. They don't want you competing for a better rate. You can switch, but you'll have to pay heafty lawyer's fees and pay out the mortgage for a clear title. 

TD is the best bank for customer service, but that new rule makes them stink.


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## davext (Apr 11, 2010)

I have 1 secured with interest rate 4%, and 1 unsecured for 6%. These rates have gone up not just from the BOC rate increases, but just from the bank wanting to make more profits this year.

9.5% is so high! I'd lend you money for 8%


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## Riff Raff (Sep 5, 2010)

prime + 0.5% on BMO ReadiLine HELOC
prime + 3.25% on personal LOC

not overly happy w/ the personal LOC - wish I could get a better rate!


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## PoorPablo83 (Feb 8, 2010)

thanks everyone! Some of these answers definitely give me something to think about!


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## GeniusBoy27 (Jun 11, 2010)

I was curious what the lowest interest rate on HELOCs that people are seeing presently?


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## CanXB (Apr 6, 2010)

I have had an unsecured line with a rate of prime + 2.75% and last week was able to get a heloc for prime + 0.5%.


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## GeniusBoy27 (Jun 11, 2010)

I should qualify:

I have HELOC at Prime + 0.5% and an unsecured loan at prime + 2%.

I have heard rumours of Prime + 0.25% on HELOCs, and wanted to see if anyone else has it.


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## Jungle (Feb 17, 2010)

Yes I have heard rumors too on RFD. Some getting prime + 0.25 now and some posting prime + 0...(doubtful but maybe true).

I think Firstline mortgage is doing the prime + 0.25ish and one poster said he's with RBC and got prime + 0...

We are making an appointment next week to lower our heloc rates again. (let the fight begin) We are currently borrowing almost 30K and treating it as an interest only loan, so we want the lowest possible borrowing rate!!!


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## petea4 (Dec 24, 2010)

My TD heloc is prime +0. 

It was adjusted from prime +1 a few months back, after another poster had adjust their's down to prime +0.5. 

I put forth the request, and they approved it.


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## marina628 (Dec 14, 2010)

My HELOC is also prime plus zero at TD as of a couple weeks ago.


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## Danialves (Apr 30, 2011)

I have read your whole query the amount of interest that he is charging is far high than the average Interest other bankers are charging in the market.Raise this issue with the banker or switch over to another bank.


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## Sustainable PF (Nov 5, 2010)

Does anyone know if BMO is offering prime + 0 for HELOC yet?

I have 2 LOC - CIBC and BMO, both Prime +2.5%


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