HELOC RATE INCREASE
- Thread starter RCC
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QUOTE (RCC @ Dec 1 2009, 07:05 PM) Has anyone received notice of increases in interest rate on bank HELOC.
I had a RBC HELOC at prime for over 10 years. I just received a letter that my rates will now be prime +1.
Anyone in similar situation and anythinhg we can do?
I received the same letter from RBC but mine was prime + 2%. I will say this though, RBC was one of the banks that held out the longest, some have been increasing since the spring.
Not much you can do
I had a RBC HELOC at prime for over 10 years. I just received a letter that my rates will now be prime +1.
Anyone in similar situation and anythinhg we can do?
I received the same letter from RBC but mine was prime + 2%. I will say this though, RBC was one of the banks that held out the longest, some have been increasing since the spring.
Not much you can do
QUOTE (RCC @ Dec 1 2009, 06:05 PM) Has anyone received notice of increases in interest rate on bank HELOC.
I had a RBC HELOC at prime for over 10 years. I just received a letter that my rates will now be prime +1.
Anyone in similar situation and anythinhg we can do?
Yes, I`ve got the same one, unsecured. Still, better than TD which did it last year, along with trimming limit.
Dejan
I had a RBC HELOC at prime for over 10 years. I just received a letter that my rates will now be prime +1.
Anyone in similar situation and anythinhg we can do?
Yes, I`ve got the same one, unsecured. Still, better than TD which did it last year, along with trimming limit.
Dejan
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QUOTE (RCC @ Dec 1 2009, 06:05 PM) Has anyone received notice of increases in interest rate on bank HELOC.
I had a RBC HELOC at prime for over 10 years. I just received a letter that my rates will now be prime +1.
Anyone in similar situation and anythinhg we can do?
Thanks for sharing RCC (Rate Constantly Changing?),
I received the same letter: a 1% increase on a non-sec LOC.
Interestingly, now we all know they increased everyone`s by 1% regardless of current rate.
meaning it`s just a planned/strategic profit increase, not real "cost" adjustment.
I had a RBC HELOC at prime for over 10 years. I just received a letter that my rates will now be prime +1.
Anyone in similar situation and anythinhg we can do?
Thanks for sharing RCC (Rate Constantly Changing?),
I received the same letter: a 1% increase on a non-sec LOC.
Interestingly, now we all know they increased everyone`s by 1% regardless of current rate.
meaning it`s just a planned/strategic profit increase, not real "cost" adjustment.
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I recently got a letter notifying of a 1% bump on an unsecured LOC w/ RBC too. My secured LOCs are unchanged (so far...).
I received a letter from Scotia over three months ago. I looked into it and guess what - not much that we can do about it. I also bounced off the Mortgage Centre and they assured me that can`t do much and count my blessings that it isn`t higher as some FIs have increased by more than 1 percent.
Sylvia
Sylvia
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I haven`t received anything from RBC, did get something from TD saying my HELOC`s were going up to Prime+1.
I called RBC, they weren`t going to raise my HELOC. I pressed TD on this - and they said that RBC had grandfathered some customers- and not raised their rates. Hopefully my RBC HELOC rates will stay Prime.
TD also did say in some cases they would give out Secured lines of credit at Prime. But lines of credit secured only against guaranteed paper assets - such as GIC`s - not real estate anymore. My how times have changed....
I called RBC, they weren`t going to raise my HELOC. I pressed TD on this - and they said that RBC had grandfathered some customers- and not raised their rates. Hopefully my RBC HELOC rates will stay Prime.
TD also did say in some cases they would give out Secured lines of credit at Prime. But lines of credit secured only against guaranteed paper assets - such as GIC`s - not real estate anymore. My how times have changed....
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Banks (whether TD, RBC, Scotia, or any other) will ONLY `bend` when you are either wanting to move your `business` to them, or when you threaten to take your business away. If you have history with the bank, significant investments, good credit rating etc. you CAN negotiate what the increase on non-secures LOC will be. But make sure that you don`t bluff - if you threaten and they don`t bend - you MUST walk.
Yevgeni
Yevgeni
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QUOTE (RCrein @ Jan 12 2010, 07:52 PM) I was in an RBC branch today and was quoted prime +.5. They also told me that existing clients were grandfathered at prime.
new clients often get better treatment than existing clients .. but P + 0.5% should be doable even for existing SECURED lines .. if not: shop around .. or threaten to pull the line .. they may (or may not) budge !
once prime goes up later this year we`ll see P+ 0.25% or prime or even prime MINUS X % again ..
higher delta (of course) on unsecured lines ! P+ 2% or more is usual !
new clients often get better treatment than existing clients .. but P + 0.5% should be doable even for existing SECURED lines .. if not: shop around .. or threaten to pull the line .. they may (or may not) budge !
once prime goes up later this year we`ll see P+ 0.25% or prime or even prime MINUS X % again ..
higher delta (of course) on unsecured lines ! P+ 2% or more is usual !
QUOTE (Yev @ Jan 11 2010, 10:51 PM) Banks (whether TD, RBC, Scotia, or any other) will ONLY `bend` when you are either wanting to move your `business` to them, or when you threaten to take your business away. If you have history with the bank, significant investments, good credit rating etc. you CAN negotiate what the increase on non-secures LOC will be. But make sure that you don`t bluff - if you threaten and they don`t bend - you MUST walk.
Yevgeni
I absolutely agree with you. This is, sadly, only language I could use with banks when it comes to tense situation, and it always worked as you said.
Dejan
Yevgeni
I absolutely agree with you. This is, sadly, only language I could use with banks when it comes to tense situation, and it always worked as you said.
Dejan
Hello,
I haven`t received anything from RBC "yet" where I have my unsec LOC. On the other hand, AGF Trust increased my secured HELOC to prime + 2% since spring/09. I called to complain, but there is a clause in their agreement they can change the rates at anytime.
It hasn`t been easy, because I have my mortgages with Citizens Bank and they have fixed amounts for the mortgage instalments, in spite of I have variable rate. On the positive side, I`m paying a lot of principal that I will offset in my Income Tax Return with the increase in the HELOC interest. You need to look for the good side.
I haven`t received anything from RBC "yet" where I have my unsec LOC. On the other hand, AGF Trust increased my secured HELOC to prime + 2% since spring/09. I called to complain, but there is a clause in their agreement they can change the rates at anytime.
It hasn`t been easy, because I have my mortgages with Citizens Bank and they have fixed amounts for the mortgage instalments, in spite of I have variable rate. On the positive side, I`m paying a lot of principal that I will offset in my Income Tax Return with the increase in the HELOC interest. You need to look for the good side.
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hi there, i had the same happen to me with my scotia account they raised it by 1%. i called and complained and threatened to leave and they didnt seem to care. then i got a call a couple months later from a scotia branch that just opened up in cranston area in calgary. He was calling to see if i would switch my stuff to their branch, as i live in the community. i told him my thoughts about scotia,and they were not very good ones, he then asked if i would come down and talk to him,so i did. he told me if i switched my heloc to them as well as open up a chequeing account,and a scotia visa card they would lower if down by .5% in hopes that i would start using them as my banking institution,as i currently use hsbc for all my banking needs. so i did just that as .5% on a $450,000 heloc is a good chunk of change, and also just canceled my other visa card
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We called around yesterday as a matter of fact. Many banks will do .50 to .75 basis above prime for secured LOC. FYI DUCA credit union will do up to $200k at prime. Many will noe give it in writing that they will lock it in at a given amount abvove Prime. DUCA will not however, at least over the telephone. Most charge $99 to clear your title and will wave the appraisal fee with a smnaller arranging fee. We called everyone from the big FIVE to ING, PC, HSBC, and several others. Anyone else have someone at prime, locked in at that in writing??????