# In Search of the Ideal Home Equity Line of Credit



## freedom60 (Nov 9, 2009)

I have just started looking for a home equity line of credit.

Currently, I found 3 institutions offering a rate of prime+0.5%.
These 3 institutions are suggesting that I would have to cover the legal
costs of setting it up. I'm trying to negotiate this but, not having much
luck. [Royal Bank, BMO and G & F Financial Credit Union]

CIBC is currently offering prime+1.0% but, is covering the legal costs if you
keep a balance of $30,000 for at least 3 months.

With any institution I should not have to pay real estate appraisal costs because my LOC amount is well below 60% of the appraised value.

One other important item I have to consider is how I will be depositing and withdrawing money from the account. Ideally I don't have to open a fee based account for online transactions to and from the account.

Any comments would be appreciated.


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## cannon_fodder (Apr 3, 2009)

You could try using a broker since it costs you nothing and they do the legwork for you. It would at least confirm what you have found on your own, if not find a better deal.


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## HaroldCrump (Jun 10, 2009)

I have been looking for a HELOC as well.
My current lender is offering Prime+1% and asking me to foot the legal and appraisal costs.
They'll provide a discount of $500 on legal fees if I use one of their "in-house" lawyers and they "estimate" the legal fees to be about $500 (very convenient, of course).

Does anyone know of lenders offering Prime or Prime Minus deals at this time?

Also, can anyone provide a reference to a good broker for this purpose, licensed in the province of Ontario?


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## freedom60 (Nov 9, 2009)

*Input from broker*

I spoke to a broker and the best he could offer was free legal and appraisal but, the rate was prime + 0.85%.


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## ldk (Nov 10, 2009)

We use a credit union (in MB) and our rate is prime-1/4....but it was set up years ago, so don't know if they would match that now.


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## cannon_fodder (Apr 3, 2009)

HaroldCrump said:


> I have been looking for a HELOC as well.
> My current lender is offering Prime+1% and asking me to foot the legal and appraisal costs.
> They'll provide a discount of $500 on legal fees if I use one of their "in-house" lawyers and they "estimate" the legal fees to be about $500 (very convenient, of course).
> 
> ...


Sent you a PM.


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## Gregreid (Oct 26, 2009)

My TD Heloc which was previously at prime is being increased to prime +1 this month (44% increase). I am very much interested if there are better deals out there.


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## cannon_fodder (Apr 3, 2009)

Gregreid said:


> My TD Heloc which was previously at prime is being increased to prime +1 this month (44% increase). I am very much interested if there are better deals out there.


Redflagdeals.com had (has?) a thread about many people getting a similar notice, i.e. a HELOC rate being unilaterally changed by the financial institution. Some people were successful about fighting back (see Vancity Credit Union) while others were not.

Have you tapped into the HELOC at all? If so, that could be rubbing salt into the wound...

As far as getting a better rate, I doubt it.


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## Gregreid (Oct 26, 2009)

cannon_fodder said:


> Redflagdeals.com had (has?) a thread about many people getting a similar notice, i.e. a HELOC rate being unilaterally changed by the financial institution. Some people were successful about fighting back (see Vancity Credit Union) while others were not.
> 
> Have you tapped into the HELOC at all? If so, that could be rubbing salt into the wound...
> 
> As far as getting a better rate, I doubt it.


I use the HELOC for my RE busniess so it carries a reasonable balance. I could switch to a VRM below prime but the HELOC is so much more flexible.


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## specialk (Jul 14, 2009)

Why do you want to go into debt?


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