# Line of Credit (LOC)



## daveking (Apr 3, 2009)

What's a good rate for LOC? Which companies are offering it?

I'm doing research on leveraging. I currently do not have a home so probably won't qualify for HELOC (Home Equity Line of Credit.)


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## mfd (Apr 3, 2009)

I have unsecured line of credit with scotia bank Prime +2


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## lb71 (Apr 3, 2009)

Prime + 2 is pretty standard. You could find a bit better if you shop around. 

http://www.fiscalagents.com/msn3/rates/Personal Loan Rates_sort.shtml


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## mfd (Apr 3, 2009)

I'm fine with that rate with prime being so low. Once the market starts to stabilizes/recover and interest rates go up I'll move it under my mortgage.


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## Hodge (Apr 4, 2009)

I have an unsecured LOC at ING Direct for prime + 1.7. Pretty sweet at today's rates.


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## daveking (Apr 3, 2009)

Hodge said:


> I have an unsecured LOC at ING Direct for prime + 1.7. Pretty sweet at today's rates.


Is this for ING Direct Canada? It seems like ING Direct Canada only offer RRSP loan.


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## Hodge (Apr 4, 2009)

Yes, it's at ING Direct Canada. And it's a regular LOC, not an RRSP loan. If you have an account there, you can click on their "view our rates" button and scroll down near the bottom where you'll see "credit account: as low as 4.2%".

Now that I look around, I don't see any way to apply for one  
I got mine when it was directly offered to me a couple of years back so maybe it's by invitation only.


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## CheckingIn (Apr 4, 2009)

Pardon the ignorance, but I'm still not exactly sure what a line of credit is. I read the definition at Investored.ca, and it sounds simple enough



> An account that you set up with a financial institution (often a bank) to borrow money. It lets you borrow what you need, when you need it, up to a certain limit.


But how exactly does this differ from say, a regular loan from the bank?


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## mfd (Apr 3, 2009)

Usually you can access it like a bank account. Money flows in and out.


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## balexis (Apr 4, 2009)

Also, you only pay interest on the actual amount of money you borrowed in your LOC. With a regular loan, you get one lump sum of money and you start paying interests on the entire amount. A LOC is much more flexible in the sense that you are free to borrow and reimburse whenever you want, up to your LOC limit.


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## CheckingIn (Apr 4, 2009)

balexis said:


> Also, you only pay interest on the actual amount of money you borrowed in your LOC. With a regular loan, you get one lump sum of money and you start paying interests on the entire amount. A LOC is much more flexible in the sense that you are free to borrow and reimburse whenever you want, up to your LOC limit.


Ah, got it. Makes sense, thanks!


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## Islenska (May 4, 2011)

*Loc*

At the Royal I pay 4.5%
What rate do you use for current prime (3%???)
The bank list they prime as 3 plus 1-----
kind of a mystery.......


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## Xoron (Jun 22, 2010)

CheckingIn said:


> But how exactly does this differ from say, a regular loan from the bank?


Think of it like a credit card, but without the card, and a much better interest rate.


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## Lephturn (Aug 31, 2009)

It's 3% and has been for quite some time.

http://www.rbcroyalbank.com/rates/prime.html


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