Guest frogcanada Posted June 14, 2004 Report Share Posted June 14, 2004 Does anyone have experience with LOCs and putting up a house as collateral to get a below prime rate? Alternatively, our bank has offered us a 5 year loan on $100000 at a fixed rate of 5.5%. Now clearly this is well above the prime rate of 3.75% of the LOC, but the LOC will vary with prime, whereas our loan would not. Obviously I don't have a crystal ball to predict interest rates, but most feel they will go up to some degree... We are in a bit of a different position from some students as we do have a house with quite a bit of equity in it... so we don't necessarily have to go the traditional LOC route, but it may still be the best way togo... Does anyone have any insight into this? Thanks FC Link to comment Share on other sites More sharing options...
Guest Steve U of T Posted June 14, 2004 Report Share Posted June 14, 2004 My brother is purchasing a home, and managed to negotiate a mortgage at the rate of prime minus 0.6 (3.15% at the moment). I would think that if somebody can get a mortgage at that rate while only putting up a relatively small down payment as collateral, you could get an even better rate if you have a lot of equity and use that as collateral on a LOC. Of course, I don't think you'll know until you actually discuss this issue with a bank manager, since there are other important factors. Link to comment Share on other sites More sharing options...
Guest Ian Wong Posted August 7, 2005 Report Share Posted August 7, 2005 Floating back to the top. Ian Link to comment Share on other sites More sharing options...
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