Comparing and considering a secured LOC?

You may see some advertising from one of the big banks about LOC's at prime + .50%. This is an attractive offer however it isn't new. This bank is just jumping on the bandwagon now

Banks,through the broker channel, have offered prime +.50%  for well over a year now. Even better, prime +.25% can be found.

Comparing and considering a secured LOC?

 
Here are some common differences that separate competing lines of credit:

• Mortgage features and rates
  • This is obviously a factor if you’re getting a mortgage along with your credit line—i.e., a readvanceable mortgage.
• Interest offsetting
  • National Bank and Manulife have this feature, and it’s a helpful way to save interest.
• Number of sub-accounts
  • Multiple sub-accounts are useful if you need to track interest separately for investment or business-related borrowing.
• Online transfers directly from the LOC
  • This is a convenience feature that lets you pay bills or fund an investment account directly and automatically from your LOC.
• Credit line portability
  • Portability is nice if you move and want to bring your LOC (and its interest rate) with you.
• Ability to lock in
  • Some lenders let you convert individual portions of your prime + 0.50% LOC to a discounted fixed or variable-rate mortgage, any time and at no cost.
• Free banking
  • This can be worth $500+ over five years.
• Linked bank cards
  • Some lenders offer a credit or debit card that’s linked to your LOC.

If you need a hand sorting this all out, call me today. I will compare all the banks’ credit lines for you and suggest the cheapest option with the most flexibility.