As most readers know, capital has become a lot more expensive for Canadian lenders. Now it’s affecting secured credit lines. We just heard from a major non-bank lender that they’re raising their interest rate to prime + 1% on their line of credit (LOC). As far as we can remember, this lender has always offered LOCs at prime rate. Hopefully rate premiums on credit lines don’t become a trend! (If they do, it will probably/hopefully be a short-term trend.)
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Last modified: October 1, 2008
Thanks for the up to the minute updates! I was in Calgary yesterday and my cab driver told me a bunch of the banks had pulled their 100% financing programs early leaving only a couple of options before Oct 15… I didn’t exactly trust my cab driver for mortgage updates so I checked your site. And sure enough… and now this! Crazy. Thank you for always staying so on top of things.