Quote:
Originally Posted by calgarygeologist
I wasn't able to easily find a thread on lines of credit so I figure I'll just post my question in here instead of starting a new thread. What is a good current rate for a secured line of credit? I spoke with a manager at a bank that my company is affiliated with and they are offering us employees prime plus 0.5%. Is this a good rate? Should I shop around for better?
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If we are talking about a homeowners line of credit, a secured , revolving credit line, than a rate of prime shouldn't be too hard to negotiate depending on credit history and your existing relationship with the bank.
Prime I believe is currently 2.95%. If your willing to transfer over additional business to the bank in the form of credit cards, investments, accounts etc than they would sometimes offer a deal on the lending products in the hope of attracting the additional business. Please keep in mind though that they are prohibited from approving/declining your lending application on the basis of you transferring over business. They are only able to negotiate the rate.
Depending on your actual lending needs and the repayment terms/timeframe , you may want to go with a hybrid product that some lenders offer where there's a mortgage portion and a line of credit portion. The benefit of having the mortgage portion is that you can save on interest costs with a locked in lower rate, actually pay off the balance every payment.
Let me know if you have any additional questions with a PM. Good luck!