HELOC Interest Rate Going Up

[max_boost]

It was always at prime but just got a letter from TD saying effective Nov 16, it'll be prime +1%.

What's the reason for it? Just cause? Is it going to be all across the board?

[benyl]

It is cause they can.

They are in a tough situation. Many Helocs were based on values before the recession. So, some people have over 80%. They are just protecting themselves.

[G]

CIBC already raised to prime + 1 6 months ago. I'm wondering when ATB is going to raise it.

[bg_27]

If you look at your Heloc documents, many people don't know this.

1) Its a demand loan, they can demand the money back at anytime.
2) On your title, the heloc is registered as Prime +5%, so they can effectively raise your rate to Prime +5% without issue.


With TD you can get exceptions made to keep your existing Heloc rate (mine is prime, so 2.25%) if you have more than $500,000 in cash/investments with TD and been a customer for over 5 years. Or if you are a private banking client.

[blownz]

Mine is still the same as it has always been at prime. But then I have had it for 5 years and never used a single dollar from it. So it wouldn't make any difference to me if they increased it but I would still be annoyed.

I did ask my banker quite a while ago when the one guy here posted that they were all going up and I was told mine would never go up. Who knows. It is only 50k and like I said I don't use it so it doesn't matter.

[bg_27]

Originally posted by blownz
Mine is still the same as it has always been at prime. But then I have had it for 5 years and never used a single dollar from it. So it wouldn't make any difference to me if they increased it but I would still be annoyed.

I did ask my banker quite a while ago when the one guy here posted that they were all going up and I was told mine would never go up. Who knows. It is only 50k and like I said I don't use it so it doesn't matter.

if it was a fixed rate heloc, then yes it won't go up. if its a variable rate heloc, then yes they can do whatever they want.

A heloc is no different than a credit card, they can adjust your credit level, cancel it at anytime, screw with the interest rates, etc.

[broken_legs]

eRGH...



I just got the letter in the mail from TD re my HELOC.

Prime + 1.00%


3.25% is still like free money though. Not too concerned at this point.


:D