Comments on: Borrowing Costs are going up http://www.canadiancapitalist.com/borrowing-costs-are-going-up/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: RBC Hikes Rates on Secured Lines of Credit | Canadian Capitalist http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-204513 RBC Hikes Rates on Secured Lines of Credit | Canadian Capitalist Tue, 24 Nov 2009 05:08:03 +0000 http://www.canadiancapitalist.com/?p=2581#comment-204513 [...] 24th, 2009 · No Comments As TD Bank, Scotia Bank, BMO and CIBC increased the interest rate on existing secured and unsecured lin..., Royal Bank remained the lone holdout. No longer. Effective January 5, 2010, RBC is increasing the [...] [...] 24th, 2009 · No Comments As TD Bank, Scotia Bank, BMO and CIBC increased the interest rate on existing secured and unsecured lin…, Royal Bank remained the lone holdout. No longer. Effective January 5, 2010, RBC is increasing the [...]

]]> By: Traciatim http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-202511 Traciatim Thu, 29 Oct 2009 02:32:35 +0000 http://www.canadiancapitalist.com/?p=2581#comment-202511 They don't change the terms, they are following the terms that you agreed to. Read it before signing it next time. If you are that upset about, find another lender to borrow from. It's the only language they understand. They don’t change the terms, they are following the terms that you agreed to. Read it before signing it next time.

If you are that upset about, find another lender to borrow from. It’s the only language they understand.

]]> By: Troy http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-202501 Troy Thu, 29 Oct 2009 01:31:29 +0000 http://www.canadiancapitalist.com/?p=2581#comment-202501 So Traciatim, tell us this... why is it ok with you for the banks to change the terms of our contract (because of the fine print) when increasing the rate, but when they drop their rates they are not applying the decrease? RBC dropped their rates to prime + 0.5% on their Homeline secured borrowing accounts but did not apply it to my account. I called, and it appears I will have to go through an application process all over again to make this happen and "fees may apply" which is funny because when they brought me over to them, they waived all fees, because my credit rating was excellent. Silly... but true... and they would risk losing my business gambling that I'm too lazy to go to the competition because the application process is annoying. So Traciatim, tell us this… why is it ok with you for the banks to change the terms of our contract (because of the fine print) when increasing the rate, but when they drop their rates they are not applying the decrease?

RBC dropped their rates to prime + 0.5% on their Homeline secured borrowing accounts but did not apply it to my account. I called, and it appears I will have to go through an application process all over again to make this happen and “fees may apply” which is funny because when they brought me over to them, they waived all fees, because my credit rating was excellent.

Silly… but true… and they would risk losing my business gambling that I’m too lazy to go to the competition because the application process is annoying.

]]> By: Traciatim http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-202444 Traciatim Wed, 28 Oct 2009 16:33:40 +0000 http://www.canadiancapitalist.com/?p=2581#comment-202444 Tom, you were the one that agreed to the terms. If the terms of the contract were unacceptable why did you borrow their money? Maybe if more people would refuse to borrow the money unless the variable rate differential was fixed then the product would change... of course then everyone would just get prime+1 instead, but the only way to help change this is to move your money to somewhere that will lock the differential. If you find one, post it here and make it public, other people will follow too. Tom, you were the one that agreed to the terms. If the terms of the contract were unacceptable why did you borrow their money?

Maybe if more people would refuse to borrow the money unless the variable rate differential was fixed then the product would change… of course then everyone would just get prime+1 instead, but the only way to help change this is to move your money to somewhere that will lock the differential. If you find one, post it here and make it public, other people will follow too.

]]> By: tom w http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-202437 tom w Wed, 28 Oct 2009 14:57:20 +0000 http://www.canadiancapitalist.com/?p=2581#comment-202437 What is profoundly offensive about this is they are hitting their most creditworthy customers who negotiated LOC's and HELOC's Prime (or Prime + 0%) with a new penality, a 1% increase in interest. The folks here and on other blogs that are annoyed are those this the most PRISTINE credit records and it is those who are being singled out by all Banks for the Prime +1% "penalty " I "thought" we had a deal with Scotia bank, (BNS) that the HELOC was variable AT PRIME. (or the over night rate + 2% either way call it %2.25) now with no consultation they are unilaterally upping it to %3.25 I am DISGUSTED that they are allowed to do this. -tom w What is profoundly offensive about this is they are hitting their most creditworthy customers who negotiated LOC’s and HELOC’s Prime (or Prime + 0%) with a new penality, a 1% increase in interest.

The folks here and on other blogs that are annoyed are those this the most PRISTINE credit records and it is those who are being singled out by all Banks for the Prime +1% “penalty ”

I “thought” we had a deal with Scotia bank, (BNS) that the HELOC was variable AT PRIME. (or the over night rate + 2% either way call it %2.25)
now with no consultation they are unilaterally upping it to %3.25

I am DISGUSTED that they are allowed to do this.

-tom w

]]> By: another victim http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-200547 another victim Sat, 19 Sep 2009 21:07:28 +0000 http://www.canadiancapitalist.com/?p=2581#comment-200547 seems all the banks are the same, what's new. BOC prime is .25%, bank prime is 2.00% over that and the banks are now going to bank prime +1% or 3.25%, if you're paying more than that, you're a higher risk or getting screwed. The banks will all share in the movement of disgruntled customers and come out the same. Maybe we should pick one bank to win and move all our business with it, maybe the biggest is best choice (RBC) what do you think? Might spur some competition instead of what looks like price fixing. seems all the banks are the same, what’s new.
BOC prime is .25%, bank prime is 2.00% over that and the banks are now going to bank prime +1% or 3.25%, if you’re paying more than that, you’re a higher risk or getting screwed. The banks will all share in the movement of disgruntled customers and come out the same. Maybe we should pick one bank to win and move all our business with it, maybe the biggest is best choice (RBC) what do you think? Might spur some competition instead of what looks like price fixing.

]]> By: It's all shady... http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-199329 It's all shady... Tue, 01 Sep 2009 15:36:28 +0000 http://www.canadiancapitalist.com/?p=2581#comment-199329 I too received the Scotiabank notice that they are adding 1% to my LOC "to reflect increases to our cost of raising funds". What does that mean? Are bigger salaries and bonuses for bank executives part of increasing costs? To add insult to injury "Scotiabank reports strong third quarter results of $931 million and ***record revenues*** for second consecutive quarter" http://finance.yahoo.com/news/Scotiabank-reports-strong-cnw-2797849026.html?x=0&.v=1 Kind of strange to complain about not being able to raise funds, then rejoice for record revenues. Reminds me of that Shaky Lady "homeless" person in Toronto, who actually lived in an apartment with a leather furniture, big-screen-tv, computer... And remember there was a time when banks actually PAID YOU to hold your money (so that they could lend it out to others and make money from it)? Now they consider themselves as giving you a "service" and CHARGE you for holding your money. I too received the Scotiabank notice that they are adding 1% to my LOC “to reflect increases to our cost of raising funds”.
What does that mean? Are bigger salaries and bonuses for bank executives part of increasing costs?

To add insult to injury “Scotiabank reports strong third quarter results of $931 million and ***record revenues*** for second consecutive quarter”

http://finance.yahoo.com/news/Scotiabank-reports-strong-cnw-2797849026.html?x=0&.v=1

Kind of strange to complain about not being able to raise funds, then rejoice for record revenues. Reminds me of that Shaky Lady “homeless” person in Toronto, who actually lived in an apartment with a leather furniture, big-screen-tv, computer…

And remember there was a time when banks actually PAID YOU to hold your money (so that they could lend it out to others and make money from it)? Now they consider themselves as giving you a “service” and CHARGE you for holding your money.

]]> By: AG http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-198826 AG Tue, 25 Aug 2009 21:14:14 +0000 http://www.canadiancapitalist.com/?p=2581#comment-198826 Scotiabank increased my line of cradit rate prime +1% which I had on prime. I asked about it and they said, Yes, they can change rate anytime they wants, so that mean they can advertise lower rate to get clients in and will increase the rate after few months. Banks have no principles at a all. Scotiabank increased my line of cradit rate prime +1% which I had on prime. I asked about it and they said, Yes, they can change rate anytime they wants, so that mean they can advertise lower rate to get clients in and will increase the rate after few months. Banks have no principles at a all.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-197704 Canadian Capitalist Wed, 12 Aug 2009 16:29:34 +0000 http://www.canadiancapitalist.com/?p=2581#comment-197704 @mitch: Sorry to hear about the bind you are in. When you buy a GIC, you are promised a interest rate and the ability to get back your principal after a certain term. Unfortunately, GICs may not be redeemable if you want your principal back before the term ends. Why don't you talk with your advisor who sold you the GICs for the options you have? @mitch: Sorry to hear about the bind you are in. When you buy a GIC, you are promised a interest rate and the ability to get back your principal after a certain term. Unfortunately, GICs may not be redeemable if you want your principal back before the term ends. Why don’t you talk with your advisor who sold you the GICs for the options you have?

]]> By: DAvid http://www.canadiancapitalist.com/borrowing-costs-are-going-up/#comment-197695 DAvid Wed, 12 Aug 2009 15:17:32 +0000 http://www.canadiancapitalist.com/?p=2581#comment-197695 Mitch, Either cash one out and lose the interest, or use the GIC as collateral for the loan. If it's all in RSP, you'll also have to pay the tax penalty for withdrawal. DAvid Mitch,
Either cash one out and lose the interest, or use the GIC as collateral for the loan. If it’s all in RSP, you’ll also have to pay the tax penalty for withdrawal.

DAvid

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