LoC Rates 2024

[phoenixmod]

Been offered a 40K unsecured LoC from my primary bank of 10 years (RBC) at prime+4.49% for a total of 11.49% as of April 2024. I have multiple credit products, investments, and chequing/savings account with RBC.

This is the first time i am being offered and seeing an LoC rate. At first this rate seemed good, but after hearing some banks commonly offer prime+0% to prime+2% I don't think it's the best.

What rate do you have for your unsecured personal line of credit? Seems like tangerine prime+0% or 1% is the best I've heard of. But that's significantly better than what the one of the big 5 offered me.

Anyone done this recently?

Considerations:
I have an 850 credit score, low rent, no liabilities, and just under 6 figure salary. With these considerations I feel I should be in a great position for credit products.

Thanks!
[first post bare with me]

 

[clippingimage]

@phoenixmod There's no way an unsecured LOC is available at Prime+1%, unless it's a short term teaser rate. Mortgages are Prime+1%-ish, and a secured LOC is probably still 2-3% above prime.

 

[truthseeker1974]

@clippingimage I was offered (and accepted) a prime +1% unsecured LOC years ago by Tangerine. I keep waiting for the notice saying they're increasing it (especially since I don't actually use it), but it hasn't happened yet. Currently sitting at 8.2%. I've read others on PFC with P+1 with Tangerine. Only "downside" is, they never send out pre-approved increases to the LOC (like I've had with other banks).. so I'm stuck with the credit limit originally pre-approved.

 

[clippingimage]

@truthseeker1974 A few years ago when the Banks were keen to lend money that makes sense. Definitely hold on to that one.

 

[clippingimage]

Also, when they say "Prime", they mean the Bank's internal prime lending rate, not the BoC Prime. They aren't the same between institutions, so you should compare on the actual net interest rate.

 

[kevintristan]

@clippingimage Aren’t all the banks prime rate in Canada the same?

 

[clippingimage]

@kevintristan Nope (I work for one of the Big 5)

 

[kevintristan]

@clippingimage Woah just looked at RBC vs TD…. lol TD is wack going above 7.2%.

 

[curtswill]

@clippingimage I got offered one from HSBC for prime + 1% and RBC has honoured it after the migration

 

[amadeois]

@clippingimage I just got a secured HELOC from Simplii last month at Prime, so I can say that part is incorrect.

 

[phoenixmod]

@clippingimage Thx for info; just repeating what I've seen here on this sub. It looked like they were promotional rates so it's not clear if they were temporary.

Will keep this in consideration as it makes the 4.49% more digestible knowing prime+1% is "unattainable" or "unbelievable"

 

[risen145]

@phoenixmod Only people getting prime or less than prime on an unsecured LOC are professionals like doctors and dentists. I have one at prime - 0.25 with a huge limit, handy to have, but mostly only available to a few professions unfortunately.

 

[khohanguc]

@clippingimage I have had a prime + 1% 25k unsecured LOC from tangerine for 7-8 years, and just got another from a Big 5 bank for prime + 1%. They do exist outside of short term teaser rates.

 

[nuovacreatura]

@phoenixmod Everyone's rates are going to be different, that being said a credit rating of 850 is pretty good. This is going to be determined by credit products, length you've had them, utilization etc. I'm guessing you have a long credit history so we'll skip that.

Generally most of the big banks are prime + 4ish and up. You can try to negotiate it down, but I've heard it has varying degrees of success.

Tangerine/Simplii will have better rates offering with promotions to switch your balance at below prime for limited time before going back to prime +0-2. The downside is its much harder to get a larger limit with them so even with good credit they may start you off at 10k

One thing to note as soon as you start shopping around for LOC products, try to do it all at once in a short time frame. Having different LOC from other institutions also allow then to compete and fight to keep you and you'll notice you'll be getting promotional rates more often

 

[phoenixmod]

@nuovacreatura Thank you for the time you took to write this. I really appreciate the insight you are sharing because I'm very new in this area.

I have about 5-6 years of credit history with multiple credit cards and a car loan. So I may still be "green".

For the most part I think you've given me way I was looking for. The promotional rates definitely did their job and enticed me!

I'm going to inquire with CIBC to see what kind of rate they have based on your advice

 

[ife]

@phoenixmod Prime +3.59% @ RBC here. Higher income but otherwise similar.

 

[billyd233]

@ife Im at same. 10.49 right now.

 

[phoenixmod]

@ife Appreciate your perspective, thanks for taking the time

 

[gkorthodox]

@phoenixmod Prime + 2.49% 30K unsecured LOC RBC

 

[hannahelizabeth93]

@phoenixmod It’s a pre-approval that would be a pretty standard rate for one. You can take it then apply to get a better rate/increase the limit.