RBC Hikes Rates on Secured Lines of Credit
As TD Bank, Scotia Bank, BMO and CIBC increased the interest rate on existing secured and unsecured lines of credit, Royal Bank remained the lone holdout. No longer. Effective January 5, 2010, RBC is increasing the interest rate on existing credit lines by 1%. The bank is sending out letters to clients advising them of changes to credit accounts:
As a financial institution, we borrow from many different sources in order to lend to our clients. Over the past year, given the economic environment, the cost of this borrowing has increased for all banks. While many have already responded with interest rate increases, we delayed increasing our rates for as long as possible. However, high borrowing costs have persisted, making it difficult to maintain our interest rates at current levels.
The best rates available on both new and existing secured lines of credit with all the big banks is now Prime Rate plus 1%.
Related Reading:
- Banks don’t match Bank of Canada’s cut
- Borrowing Costs are going up
- Quick Tip: Get a Secured Line of Credit
- Mortgage Rates: Fixed or Floating
- Save Money on Morgages
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