Home Equity Loan in Canada

**snafu** · 05-02-2009, 08:48 PM

The rate will depend on how you're going to use the money. It's very subjective and will be whatever the loan officer negotiates with you. If you have time and patience go to one of the smaller banks [National, Laurention for example], a credit union [particularly if you can link to employment], and BMO [I think it's the smallest of the 5] with your information [mortg. document, confirmation of employment, credit report, list of creditors, RRSP statement] and ask for their best rate. If they tell you there is a charge to approve you for a loan, try to negotiate it away. Our banks are greedy and always thinking up more charges. There will be fees for assessment, legal and putting a lien on your home.

Armed with information, you can then go to your regular bank and tell them the rate you were offered and ask them to match. If they decline, you can move your business elsewhere. right now posted mortgage rates are 3.5%. Consumer loans can be as low as 4% higher

**Lindahfx** · 05-04-2009, 08:45 AM

We were just approved for a all-in-one home equity based LOC through Manulife One. Basically your mortgage and other debts are all in one LOC with your house as collateral. You just pay down everything together but it still acts like a chequing account. Almost all financial institutions are offering this sort of an option. The going rate right now is 3.25%. Hope that helps.

**sjacrews** · 01-28-2012, 06:01 PM

HELOC pricing

Looks like the rates haven't changes much over the last couple of years.

Most home equity loans are priced based on bank prime rate. Currently - January 2012 - prime is 3%. Lenders are pricing their HELOC's from prime plus 0.50% to prime plus 1.0%. Therefore, today youncould set up the line of credit from 3.5% to 4.0%.

Steve

Home Equity Loan in Canada