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downatone
Nov 21st, 2007, 10:59 AM
Hi,
I'm hoping to setup a line of credit within the next week or so. I want do something like a home equity loan. I went to pc to do this but walked out when I realized there was a $400 setup fee. Seems like there are other banks that will do this for free, is there anything to look for that makes one better than the other?

cheers
AllWheelDrift
Nov 21st, 2007, 11:06 AM
According to PC's website, the fee for a secured LOC is $150, not $400. I believe every bank will charge a fee for a secured LOC, but I suppose there's a chance you can find one that's willing to waive it.

Unsecured LOCs usually don't have a setup fee but natrually your interest rate would be higher.
webworm
Nov 21st, 2007, 03:21 PM
You are correct PC only charges $150.00 which includes both legal fee and appraisal fee. I went to TD and they wanted $400.00 for legal and $200.00 for appraisal.
brew99
Nov 21st, 2007, 05:14 PM
Hi,
I'm hoping to setup a line of credit within the next week or so. I want do something like a home equity loan. I went to pc to do this but walked out when I realized there was a $400 setup fee. Seems like there are other banks that will do this for free, is there anything to look for that makes one better than the other?

cheers

I am in the market for a HELOC also, and from what I can see on advertised fees, PCF seems to be the cheapest.

That being said, It doesn't hurt to go to your bank (the one you do most business with), and talk to a CSR and see if they can match or beat that fee. Tell them you would like it for investment purposes, and you plan on only paying interest, and will probably have a large balance for the rest of your life. this is a good money maker for them (the bank). Of course, once set-up, you can use the available funds as you choose.

just food for thought!
acanaman
Nov 21st, 2007, 07:28 PM
CIBC almost always has a promotion waiving the setup fee as long as the line of credit limit is at least 25,000

BMO does not waive the fee.
Hellfire
Nov 21st, 2007, 07:44 PM
BMO does not waive the fee.

They did for me.
Thalo
Nov 21st, 2007, 08:40 PM
With every bank there's a chance they'll waive your fee, depending on how much business you bring them. Keep in mind that's a cost to them, it's not a simple fee that they don't charge. So, if CIBC/PCF waive the $400 set up fee, what's actually happening is that they are paying the legal costs of registering against your home out of their own pockets. Thus, it has to be worthwhile for them.