As I was taking some time to go through a few deal websites, I decided to visit RedFlagDeals. I havenâ€™t been on it for some time (not sure why, itâ€™s a great site).
Anyways, I came across a great deal that I have to share with everyone; I am sure a lot of people will be interested in a secured line of credit at Prime + 0.5%.
What is the deal?
As we all know, interest rates have been at historic lows; the prime rate is currently at 3%. For many people who have looked into interest rates, you will know that the majority of banks are offering a secured line of credit against your home at prime + 1%.
The Royal Bank of Canada (RBC) is offering anyone who switches their secured line of credit to their RBC Homeline plan credit line at a rate of Prime + 0.5%.
That is right, with the prime rate being 3%, your secured RBC Homeline plan credit line rate would be 3.5%.
Not bad right? Well it gets even better.
How does it get better?
For anyone who switches over, RBC will pay so they can get out of their current agreement.
RBC will pay the basic title insurance fee (this does not include the migration fee), appraisals/ property valuation fee and one discharge/ switch out fee t another financial institution (up to $300 maximum). Keep in mind that this offer excludes any mortgage payment charges that you may have to pay. The minimum advance is $50,000.
Is this deal worth it?
Now, considering that many banks offer youâ€™re a rate of Prime + 1%, then you are winning. To showcase the difference, see the table below:
|Amount||Interest Rate||Monthly Payment|
|Without RBC Homeline Plan Credit Line||$100,000||Prime + 1%||$1,012.45|
|With RBC Homeline Plan Credit Line||$100,000||Prime + 0.5%||$988.86|
As you can see in the table above, the savings you can make is $23.59/ month. In my opinion, any amount of savings is good. You are hitting double digits here, so it may not be too bad to switch.
I am not saying it is a thing you need to do, but it is always something to consider, if you are finding your rate to be a unsatisfactory.
What do you think of RBC’s rate and switch deal?