TD is the first big bank out of the gate. It just raised its prime lending rate by 1/4 point to 2.75%.
The change takes effect tomorrow.
TD was the first of the Big 5 to raise prime after the June 1 BoC meeting as well.
Other banks will likely follow later today or tomorrow.
CIBC and RBC just went to 2.75% as well.
This was as expected.What got me surprised is the trend in bond and money market.
When is a good time to ask for my percent back as in “prime plus 1 percent.” I want that back off my line of credit. Can I ask and get that back yet?
I talked to my TD guy today as I have a heloc at P+1. He said that they have seen nothing about a drop of the +1, but if another bank does it, that TD would probably follow.
RBC has been Prime plus
.50 for about 6 months
now on heloc.
Ya, I talked to him about that, but it isn’t a pure Heloc if I remember correctly.
I will look closer at it though again.
FYI – National Bank is now offering Prime +.50 inside the “All in One” HELOC product. You might want to use that as leveage.
Is there any lender that has HELOC product for second charge and allows sub-accounts for flexible account management? National Bank All in One is a perfect example, but they don’t do second charge.
I heard PC Financial and DUCA might allow LOCs in 2nd position but I don’t think they have multiple sub accounts.
TD and CIBC will allow LOC in 2nd position at the branch level. But as Dale mentioned above they don’t allow for multiple sub accounts. And I’m not aware of anyone that offers that feature in second position.
In a week or so I’m going to call my local rep. It’s always worth a shot. I also have a LOC at Scotia so first to drop gets/keep my business.
CIBC is offering me 2.45% on a variable 5 year closed. I am comfortable with variables. I am also considering 3.63% for a 3 year fixed. Any comments?
If you’re well qualified you can easily find better rates and features elsewhere. You might want to talk to a mortgage planner to see what term makes the most sense, and then see who has the best deals at the moment for that term.
If you need to stay with CIBC for some reason then show them this and try to get them closer to the best rates:
Globe Investor Mortgage Tables
Good luck! Let us know if we can help further…
Robert, thank you very much.
5-year cad gov’t bond yields have hit a fresh 14-month low, 2.288% as I write this at 2 PM on Friday.
Also, 5-year swaps are down to their lowest level since early December …
Any chances we see fixed rate cuts today or Tuesday? Or are all the decision-makers at the cottage for a while?
Various non-banks cut 5-year fixed rates this week. There’s at least half a dozen now below 4%, and there may be more cuts to come next week.
There’s still no drop in posted rates though, which is slightly suprising.
Sure enough – it happened the very day we posted here on this subject (RBC, thanks for the heads-up), we just didn’t know it.
TD does offer 2nd place helocs with sub accounts …ie… fixed mortgages within the heloc limit.
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