My bank just raised my Line of Credit rate.

Many people when buying a house or getting a mortgage through a major bank branch often get offered a consumer unregistered Line of credit. I am sure you know the lines..

Use this line of credit for a “just in case”, perhaps for renovations, purchase a family vehicle, or use these funds to help close a deal with the cost of closing fees.

Regardless what the reasoning, when these credit lines were issued they had rates such as Prime plus .5{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8} or prime plus 1{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8}, with Prime being at 3{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8}… most line of credits were offered at 4.00{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8}

But for no reason at all, our major Canadian banks are notifying us that our credit lines are being increased to 8.75{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8}, or even over 9.00{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8}!

This will impact your month to month cashflow in such a way in regards to your interest payments that us Canadians have to ask the question…

“Should I roll my 9.00{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8} LOC into a 2.99{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8} mortgage?”

If this is a question you are asking feel free to ask one of our Mortgage Teachers today