Negotiating a HELOC?

[tvp2003]

Looking to open a HELOC -- should I just go to my usual bank or will I get a better rate if I negotiate/shop around? Also, I'm aware of the set-up fees (appraisal, legal?), which I am assuming are pretty standard, but are there other fees or options that would differentiate one bank/lender versus another?

Thanks

[Prototype]

Rates are pretty standard on HELOCs. Usually Prime plus anywhere between 1 - 3%.

If you're looking for the best rate, and less fees, talk to SAIT Campus ATB Financial. They have Prime + .5% for the first year, Prime + 1% after that. And there's a golf promo on right now where they'll waive some of the Appraisal and Registration fees for you as well.

I don't work there anymore, but tell them that Rob sent ya.

/Lanny reference.

[MoneyGuy]

Shop around but don't have all kinds of credit checks done on you. It doesn't look good on your credit report. Please report back here on what you are offered by the various financial institutions. I haven't negotiated a LOC for myself for a long time but like to know rates for when clients ask me. It seems LOC rates have increased (P + ?) since I set up my LOCs many years ago.

[tvp2003]

Originally Posted by MoneyGuy

Shop around but don't have all kinds of credit checks done on you. It doesn't look good on your credit report. Please report back here on what you are offered by the various financial institutions. I haven't negotiated a LOC for myself for a long time but like to know rates for when clients ask me. It seems LOC rates have increased (P + ?) since I set up my LOCs many years ago.

My understanding is that unsecured LOC's are currently at P+3 (or something like that), while secured LOC's are at P+1. Not sure if there is much variation across lenders; I've read that banks aren't willing to negotiate rates (i.e. like they would on a mortgage). If anything, they will knock off the set-up fees or do some other promotion (I remember last year, CIBC was offering free appliances; I think there may have also been promotional rates for the first year), but I don't see anything like that anymore.

[MoneyGuy]

Those rates are a point higher than my LOCs. My secured LOC is prime and my unsecured is P+2%. Thanks, good to know. I also got the setup fees waived on the secured LOC. Ha, I had client who claimed to have an unsecured at P+4/5%. It pays to protect your credit rating.

[Prototype]

The best weapon you have in banking... is your banking. Most banks wont waive anything for you if you just set up the HELOC. Banks will bend over backwards to earn your full business tho.