TD ULOC interest only payments

[isyed]

Hello All

First time posting a new topic. You guys are very helpful.
Not sure if any other TD customers got this or not.

Couple days ago i got a letter in the mail from TD. It said good news on the envelope. I thought it was one of those 4.99% for 6 month cheques. To my surprise it was a special mailer offer which stated that my account was selected as one of the few to qualify for interest only payments instead of the 3% minimum payment. My Unsecured Line of Credit is at Prime + 3% currently and the limit is around $18k. Its an awesome deal.

I went to the branch to verify this and to my surprise only 70,000 other TD customers around Canada got this offer.

Any one of you get it?

[AllWheelDrift]

At Prime+3 I wouldn't call interest only payments an awesome deal. My ULOC with RBC is Prime+2.75 interest only and I got it years years ago without any negotiating. In fact I never really had paid attention to the minimum payment requirements until I checked just now and confirmed it is interest only. They also regularly send those low rate cheques.

Normally, I'd say ULOC of Prime+1 interest only is a reasonable deal, but in the current conditions, I suppose Prime+2 interest only would not be bad.

[slavka012]

This so non-deal. You ALWAYS can pay interest only -- make a minimum payment and withdraw from the LOC again.

[dgodsell]

I rec'd this offer as well. Though after speaking with my contact at the bank , the rate is prime + 1.5%.

A good source of funds if investment bargains are available.

[monty613]

thanks for sharing OP

historically TD hasn't been very aggressive with personal unsecured LOC pricing, even for employees. everyone on RFD claims to have an unsecured 50K LOC @ prime or below prime, i'd love to know where they get it.

[joe1487]

How is that a deal? Pay the 3%, then withdraw the difference between the 3% payment and that month's interest, and you've done exactly the same thing...

[AllWheelDrift]

How is that a deal? Pay the 3%, then withdraw the difference between the 3% payment and that month's interest, and you've done exactly the same thing...
If you're trying to keep it as a tax deductible loan used for investments that maneuver causes problems.

[Thalo]

How is that a deal? Pay the 3%, then withdraw the difference between the 3% payment and that month's interest, and you've done exactly the same thing...

Exactly, also how is not paying down your debts in favor of paying the bank more interest a DEAL?

Theoretically I can live in my condo for free by always withdrawing my interest only payment from my HELOC, after paying it. Still doesn't help me in the long run.