Line of Credit rises at CIBC April

[pacific]

I almost missed it, but there was a small entry on my April monthly "Personal Line of Credit" statement from CIBC. I looked closer, and realized that the rate I am now being charged is 1.0% HIGHER than previously, the month before. My PLC is unsecured, maximum $10,000; I have had it for over 35 years…

The entry was "April 06... PLC RENEGOTIATED" with a zero amount entered.

Renegotiated? by the bank; I had nothing to do with it!

My new rate is 4.75%, based on a “Current prime interest rate” of 2.5%. The month before my rate was 3.75%.

I asked an officer about it and she said that the rates went up for everyone, including herself (!); for some people the rates went up 3%, and some other banks rates’ went up to 18%. I did feel a little better, since mine ‘only’ went up 1%. She also mentioned that the basic ‘bank rate’ rate dropped today by 0.25% (so my new borrowing rate will be 4.5%).

I thought the Bank Of Canada was lowering interest rates in order to stimulate the country’s economy. This CIBC maneuver is doing the opposite. anyone else notice this happening to their loans / lines of credit accounts?

[STone]

Originally Posted by pacific

I almost missed it, but there was a small entry on my April monthly "Personal Line of Credit" statement from CIBC. I looked closer, and realized that the rate I am now being charged is 1.0% HIGHER than previously, the month before. My PLC is unsecured, maximum $10,000; I have had it for over 35 years…

The entry was "April 06... PLC RENEGOTIATED" with a zero amount entered.

Renegotiated? by the bank; I had nothing to do with it!

My new rate is 4.75%, based on a “Current prime interest rate” of 2.5%. The month before my rate was 3.75%.

I asked an officer about it and she said that the rates went up for everyone, including herself (!); for some people the rates went up 3%, and some other banks rates’ went up to 18%. I did feel a little better, since mine ‘only’ went up 1%. She also mentioned that the basic ‘bank rate’ rate dropped today by 0.25% (so my new borrowing rate will be 4.5%).

I thought the Bank Of Canada was lowering interest rates in order to stimulate the country’s economy. This CIBC maneuver is doing the opposite. anyone else notice this happening to their loans / lines of credit accounts?

I would find a new home for your money if I were you. I was with CIBC for a few years before I went to a low cost bank. For a small guy like me, I was having to pay $20/month in fees and my savings account was getting me .25% interest. I now bank at a place where I actually make money. Free chequing and a high interest savings account. Also, the line of credit I was given was 75 points lower than CIBC. Of course this is just my personal experience.

[kassam]

TD did the same thing to me last month. They were nice enough to send me a letter in February for what it's worth...

I got the same spiel when I phoned and questioned it.

[wx_junkie]

Got the same notice from CIBC last month, so this month I DID find a new home for it. P+2 was the best I could find for unsecured.

Your loss CIBC.

[pacific]

It's really a mute point with me, as I rarely need the service (of borrowing funds). But it seems contradictory to the Feds policies.
The odd thing was, I had fouind that I have too many bank accouints, and just last week, closed a Scotia US$ account to reduce the number of banks I deal with, and created a new US$ one at a more-convenient CIBC.
Sounds like there may be more than one bank doing this.
BTW, I do have a PCFinancial and CanTire and Peoples accounts as well (I know about the freebies)

[blackjacques]

They tried to do the same thing to me on my HELOC. I told them to leave it at prime or I was going elsewhere. They agreed. Problem solved.

Rob

[jambo411]

They tried to do the same thing to me on my HELOC. I told them to leave it at prime or I was going elsewhere. They agreed. Problem solved.

Rob

Who do you deal with? My CIBC Heloc went up to prime +1 at the begining of the month. I had my Heloc split last year into two accounts, business and personal, so that I could start a new business. That +1 makes quite a difference, a 40% increase in the effective rate.

Jamie

[pacific]

Maybe I will go in and get a HELOC, and see if they can reduce my rate back down. I will let you know what happens...
I was paying 1.25% above prime for unsecured (up to $10K), do you think I should get 1% above the banks prime with a house-secured loan?

[confusion]

Do you have to get a HELOC from the same institution your mortgage is from?

Or can you get a HELOC from any bank?

And how much in equity do you need before a HELOC is possible?

i.e. Mortgage outstanding balance $220k. House was appraised 1 year ago to be about $310 to 320k.

[blackjacques]

I am actually with PC Financial, but the real bank is CIBC. Here is the person that I spoke with to have my rate lowered to prime +0*:

* SCRATCH THAT: they just upped it to +1%.

Maria Cea-Zarcone
Secured Lending Specialist
President's Choice Financial, Mortgages & Lending
Local Phone: 416-865-0411 ext. 8836
Toll Free: 1-888-514-8414 ext.8836
Fax: 1-866-656-6556 or 416-874-1910
Maria.Cea@preschoicefinancial.com

Good luck!

rob