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Discussion Starter #1
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?
 

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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.
 

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TD did the same thing...

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.
 

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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.
 

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Discussion Starter #5 (Edited)
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)
 

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Greedy Buggers

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
 

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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
 

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Discussion Starter #8
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?
 

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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.
 

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My HELOC contact

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
[email protected]

Good luck!

rob
 

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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.
confusion, you can get a HELOC from any financial institution as long as you get approved although a lot of folks like to get the HELOC from the same institution they got their mortgage from, just make it a tad easier to organize stuff. Some of them are tied into the mortgage i.e. as you pay down the mortgage principle, the HELOC amount goes up. In addition, rates are pretty competitive these days anyway.

I believe you need to have at least 20% equity in your home to qualify for HELOC but I don't know if that number is set in stone. You can check with your preferred financial institution.
 

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The scumbags at scotia bank just send me a letter saying they were increasing my secured line of credit by 1% from 2.25% to 3.25%. This is after I renewed my mortgage at prime + 0.8% and moved a large chunk of it to the secured line of credit at the lower rate.
 

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My TD HELOC is steady at 3.25. The last movement was down to that from 3.5% about 2-3 months ago...Doesn't really affect me because it's balance is 0, though. :)
 

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presidents choice financial

thought i would bring this up guys anyway i was thinking of transfering my secured borrowing account to royal bank as they offer prime plus 0.50 persent when i was pickering with president choice they said they would look at it -got a call they matched the royal banks prime + 0.50 its a competive business you guys so don't be scared to picker the royal has been advertising prime +0.50 for some time now about six mnths or so if you plan to picker do it -it worked for me.
 
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