BMO is going to increase existing HELOCs by 1%?? - Page 2 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

FireInTheHole · 03-03-2009, 01:54 PM

Quote:

Originally Posted by Bertuzzied

Is it a secured or unsecured LOC?

Actually, both! And the increase applies to both accounts.

Bring_Back_Shantz · 03-03-2009, 01:56 PM

Well that's the risk you take when you get something like a HELOC.
You aren't locked in for a long term contract so the bank can pretty much do whatever they want when it comes to the interest rate.
It sucks, but they have every right to do it.

Bertuzzied · 09-17-2009, 03:40 PM

BUMPPPP. So i got my statement today and my rate is now 3.25%.

I guess TD is also bumping up their exisiting HELOC owners to 3.25% in November. The only bank left is Royal.

Blah. So when interest rates are back to 5% will they take that prime +1% away? Prob not!

Antithesis · 09-17-2009, 03:54 PM

I got the letter from TD today as well. Our entire mortgage is one of these lines of credit. I'd be interested to know what rates are out there for a traditional mortgage.

Bertuzzied · 09-17-2009, 03:59 PM

Quote:

Originally Posted by Antithesis

I got the letter from TD today as well. Our entire mortgage is one of these lines of credit. I'd be interested to know what rates are out there for a traditional mortgage.

Just reading from Redflag that if you have $500k of assets with TD you can negotiate with them. Anything under and they won't even consider it.

Over 500k will not be increased at all.

Between 400 and 500k will see an increase of between .25 and 1.0% and only if customer is fully 'franchised' and been with TDCT for 5 years or more.

Under 400K will see the full 1%..not negotiable.

This is assets of course, not the size of the LOC.

So says my guy.

Also, must have been with the bank for 5+ years

Antithesis · 09-17-2009, 04:03 PM

Looks like I fall into the 'not negotiable' crowd. Any mortgage brokers have information on what the best 5 year rates you're seeing right now are?

Draug · 09-17-2009, 05:35 PM

Quote:

Originally Posted by Antithesis

I got the letter from TD today as well. Our entire mortgage is one of these lines of credit. I'd be interested to know what rates are out there for a traditional mortgage.

I saw 4.19% 5 yr fixed posted at the Beacon Hill ATB when I was in there yesterday.

They just did mortgages on two of my rentals to 3.5% fixed. The level of service I had from them, and that branch in particular, was incredibly good!

The 3.5% fixed rate cannot be had anymore, but I had a rate guarantee from early June.

Antithesis · 09-17-2009, 05:42 PM

Hm, I'll have to keep that in mind. I guess TD isn't making enough money these days.

Mike Oxlong · 09-17-2009, 06:12 PM

Quote:

Originally Posted by Antithesis

Looks like I fall into the 'not negotiable' crowd. Any mortgage brokers have information on what the best 5 year rates you're seeing right now are?

Fotze is right. ING has a good rate of 4.09% right now.
I should actually be able to get you 4.04% through ING because we do so much volume through them. They have told us they are only offering it until the end of September though. It doesn't have to close by then, we just need to have the application in.

If you ever want to check out rates I try to keep mine updated pretty regularly - www.jamiecoulter.ca

Odd that the banks are raising the interes rates on the HELOC's, fixed rates have been dropping for the past few weeks and a lot of lenders are dropping their variable's from Prime plus 0.4-0.6 down to Prime plus 0.2.

KTown · 09-17-2009, 06:20 PM

Quote:

Originally Posted by Mike Oxlong

Fotze is right. ING has a good rate of 4.09% right now.
I should actually be able to get you 4.04% through ING because we do so much volume through them. They have told us they are only offering it until the end of September though. It doesn't have to close by then, we just need to have the application in.

If you ever want to check out rates I try to keep mine updated pretty regularly - www.jamiecoulter.ca

Odd that the banks are raising the interes rates on the HELOC's, fixed rates have been dropping for the past few weeks and a lot of lenders are dropping their variable's from Prime plus 0.4-0.6 down to Prime plus 0.2.

My mortgage is coming up for renewal at BMO as the 5 year term is ending this November. I may be in touch with you because I have a feeling they may not give me the rate I want.

Finner · 09-17-2009, 06:34 PM

If you shop around I would think you could find a fixed rate for 5 years at 4% or lower. If you are willing to go into the 4 year, 3 year or even 2 years i would think you could find as low as 2.9ish on a 2 year.

Deegee · 09-17-2009, 07:26 PM

Quote:

Originally Posted by csnarpy

i called TD about this possibility and was explained that since I had signed a contract with a prime rate that my HELOC will stand as is.

Thanks TD

TD Helocs' Collateral Mortgages are drawn up at P+5%, or at least all of the TD documents I have ever pulled in an land titles office search are drawn up as such.

So I imagine it can and will go up.

I know that the Home Equity Revolving Credit facilities we used to draw up were done at Prime and to my knowledge we are not looking to move on them for existing customers, but new ones are done at P+1%.

DementedReality · 09-17-2009, 10:52 PM

Quote:

Originally Posted by Mike Oxlong

.

If you ever want to check out rates I try to keep mine updated pretty regularly - www.jamiecoulter.ca

.

funny, i always just assumed your name was Mike Oxlong .. lol

Mike Oxlong · 09-17-2009, 11:00 PM

Quote:

Originally Posted by KTown

My mortgage is coming up for renewal at BMO as the 5 year term is ending this November. I may be in touch with you because I have a feeling they may not give me the rate I want.

My advice would be to call them and ask them what they will be offering you for a renewal rate ASAP. If it isn't what you want let me know and we can work on getting a rate hold put in place for you right now. That way we can ensure you won't pay anymore than 4.04%. If rates go up we have that rate held for you. If they go down between now and the end of November then you will still get the lower rate. You can't lose that way.

Let me know if you have any questions in the meantime.

cmyden · 09-18-2009, 09:55 AM

Wait, you mean money isn't going to be free forever?

MoneyGuy · 09-18-2009, 10:13 AM

Many of you guys seem like you believe that a business shouldn't be able to set its own prices.

Shazam · 09-18-2009, 10:34 AM

3.89% driving by Westcor today.

Incinerator · 09-18-2009, 11:14 AM

Quote:

Originally Posted by MoneyGuy

Many of you guys seem like you believe that a business shouldn't be able to set its own prices.

When I'm paying taxes in a socialist country I expect the banking system to provide welfare to me like a socialist country would too

MoneyGuy · 09-18-2009, 01:41 PM

Quote:

Originally Posted by fotze

I think most assumed (and many were told) that when a rate is Prime plus X%, that all that can change is the Prime part. Some financial advisors did not do their homework and read the contract then tell the loanee that both prime and X are variable.

Need to read the contract fully and not trust what the guy you are paying (through commisions) is telling you, unfortunately.

If you knew that the x could change, then yes you have nothing to complain about, if you were lied to then you do have a beef, even that you signed the 47 page contract. A lie is a lie.

Read the contract. Always good advice.