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12-05-2013, 07:37 PM
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#1 | | Proud to be called a RS Regular!
Join Date: Nov 2013 Location: YVR
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| Line of credit
I was recently contacted by my bank about opening a line of credit. I would like to open one in case of emergencies however the rate they gave me was prime + 3.75%. Now I want to negotiate it down but what's a good way to do this? What's a reasonable rate to ask? A friend of mine has prime + .5 unsecured which is ridiculous. Would asking for prime + 1.5% be reasonable?
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12-05-2013, 08:26 PM
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#2 | | MiX iT Up!
Join Date: May 2006 Location: vancouver
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The higher the credit amount, lower the rate.
If you do all your business with that bank, use that as leverage.
What does your friend do that he has P+.5 as a rate?
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12-05-2013, 08:53 PM
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#3 | | #savethemanuals
Join Date: May 2008 Location: Richmond
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Students usually have prime+.5 but that's on a professional student line of credit.
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12-05-2013, 09:08 PM
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#4 | | RS controls my life!
Join Date: Nov 2012 Location: YVR
Posts: 799
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Wow your friend got a smoking deal.
I have prime + .5% but its on secured LOC with BMO. I have a huge credit limit though.
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12-05-2013, 09:43 PM
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#5 | | RS.net, helping ugly ppl have sex since 2001
Join Date: Jan 2005 Location: Vancouver
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Wow that's a sick deal, I have prime + 3%
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12-05-2013, 09:54 PM
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#6 | | Proud to be called a RS Regular!
Join Date: Nov 2013 Location: YVR
Posts: 106
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Should I bother going to another bank to get a quote? I don't want a credit check done
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12-06-2013, 02:23 AM
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#7 | | I am Hook'd on RS
Join Date: Nov 2009 Location: Van
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| Quote:
Originally Posted by moldex Should I bother going to another bank to get a quote? I don't want a credit check done | You'll most likely be able to negotiate a better rate if:
1) You've been with the Financial Institution for a decent amount of years
2) Have good credit
3) Have multiple products/services/accounts at one FI.
4) Have a mortgage or a secure line of credit that bank can have collateral over.
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12-08-2013, 06:42 AM
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#8 | | NEWBIE ACCOUNT!
Join Date: Sep 2012 Location: 604
Posts: 22
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my staff rate is prime+1%  | |
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12-08-2013, 03:48 PM
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#9 | | I contribute to threads in the offtopic forum
Join Date: Feb 2006 Location: Vancouver
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I have a LOC with interest rate sitting at prime from CIBC, it was a promotional interest at the time not sure if its still available
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12-08-2013, 04:04 PM
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#10 | | #deephouse
Join Date: Mar 2010 Location: Vancouver
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I have prime +3 when I asked for 15k
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10-01-2015, 06:58 PM
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#11 | | I *Fwap* *Fwap* *Fwap* to RS
Join Date: Aug 2006 Location: Vancouver
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Anybody have a line of credit from a credit union? Would their rates typically be lower than the banks?
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10-01-2015, 07:22 PM
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#12 | | I contribute to threads in the offtopic forum
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Originally Posted by d1 Anybody have a line of credit from a credit union? Would their rates typically be lower than the banks? | Im with Prospera.
I have a 30k LOC at prime + 1.75.
I have perfect credit, and a mortgage threw Prospera. I never really shopped around, or negotiated.
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10-01-2015, 08:37 PM
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#13 | | I *Fwap* *Fwap* *Fwap* to RS
Join Date: Aug 2006 Location: Vancouver
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Secured or Unsecured?
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10-01-2015, 08:40 PM
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#14 | | I contribute to threads in the offtopic forum
Join Date: Aug 2006 Location: Abbotsford
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Unsecured
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10-01-2015, 08:43 PM
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#15 | | Willing to sell body for a few minutes on RS
Join Date: Aug 2004 Location: Duncan, BC
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I think mine is prime + 1% but I honestly don't know as I never use it. IIRC, I have a $25k limit.
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10-01-2015, 09:49 PM
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#16 | | I *Fwap* *Fwap* *Fwap* to RS
Join Date: Aug 2006 Location: Vancouver
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| Quote:
Originally Posted by Jmac I think mine is prime + 1% but I honestly don't know as I never use it. IIRC, I have a $25k limit. | Bank of credit union?
I only got offered prime + 3% @ RBC and I have been with them forever.
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10-02-2015, 06:57 AM
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#17 | | Old School RS
Join Date: May 2004 Location: Port Moody
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As a BMO employee, we get basically the best rates that are possible for customers. My PLOC (unsecured) was setup at P+3.0% which I assume is the default for a walkin but was then adjusted to P+1.25%. Since they gave that to me, that means there are at least some customers who are also receiving this rate - though I don't work in a branch and have no idea what the qualifications might be.
Mark
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11-25-2015, 05:39 PM
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#18 | | I don't get it
Join Date: Dec 2012 Location: Richmond
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got mine prime + 3% at 15k at td. wanna try 30k in the near future.
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11-25-2015, 10:50 PM
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#19 | | MOD
Join Date: Oct 2002 Location: VANCOUVER
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shiet, mines like prime + 7% i think for 5k. I haven't use it in like 4-5 yrs.
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11-26-2015, 09:36 PM
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#20 | | I Will not Admit my Addiction to RS
Join Date: Mar 2009 Location: Vancouver
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Someone educate me, what is the difference between secured and unsecured?
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11-26-2015, 09:40 PM
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#21 | | 14 dolla balla aint got nothing on me!
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| Quote:
Originally Posted by dn53 Someone educate me, what is the difference between secured and unsecured? | well one is secure and the other is not.
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11-27-2015, 05:20 AM
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#22 | | I contribute to threads in the offtopic forum
Join Date: Jun 2006 Location: not vancouver
Posts: 2,642
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| Quote:
Originally Posted by dn53 Someone educate me, what is the difference between secured and unsecured? | if you have equity in a property you can use that as collateral, i.e. if you default on your LOC, the bank can claim against your property - because of this the bank's risk is much lower thus you will get a lower rate. Almost anyone with a pulse and equity in a property can get a LOC at prime + 0.5% up to about 80% LTV (means you must have >20% equity always - this may be out dated LTV information)
unsecured LOC aren't great as the bank has little recourse if you don't pay back (as in, they can't encumber an asset, of course they will actually have legal recourse) - they are loaning to you based on your income to pay back the LOC = higher risk = higher rate, as we're seeing in this thread.
A couple of reasons why secured LOC's are great:
- Cheap immediate money
- No need to actually hold a 6 month emergency fund if you're an investor (you can invest almost all your excess cash), as any short term emergencies can be covered by a cheap LOC
- You can use funds to invest and deduct the interest against the investment income (there's a thing called a smith maneuver which is basically paying off your mortgage then immediately taking out money on your LOC (as your mortgage gets paid down, the amount of available LOC increases) to invest in, say, equities... for some reason people think this is a god send... it's not, it's a nice tax tool, it's not the secret fountain of financial freedom - hard work, saving/investing your money every month and living within your means is the real secret... and very few actually know about this one)
ok, i've digressed.
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11-27-2015, 03:17 PM
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#23 | | Everyone wants a piece of R S...
Join Date: Jan 2013 Location: Vancouver
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Mine is with Vancity, secured at P +1% for 150k, when i renew my mortgage the person I spoke with talked about lowering my LoC rate. It's a lot cheaper to use the LoC to pay off credit cards immediately if you don't have the funds available.
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