Wednesday Jul 23, 2014

RBC: Switch and Get 0.5% Knocked Off Instantly!

13 July 2012

With the recent increase by TD Canada Trust in their line of credit interest rate, it has left many clients angry at this decision – especially when majority of people that this affected have been great clients in perspective to their payments.

That said, Royal Bank of Canada (RBC) is running a promotion which will definitely be something a lot of might be interested in, seeing as it knocks off 0.5% off their home equity credit line.

 

What is the promotion?

RBC is allowing you to have 0.5% dropped instantly when you switch to an RBC Homeline Plan credit line.

The interest rate you will receive is 3.5% (prime + 0.5%) – this would allow you to save as much as $5,000 in interest payments!

To showcase the difference in interest, I have provided a comparison in the table below:

AmountInterest RateAnnual Interest
Amount Interest Rate Annual Interest
Without RBC
Homeline Plan®
credit line
$100,000Prime + 1%$4,000
With RBC
Homeline Plan®
credit line
$100,000Prime + 0.5%$3,500

As you can see, you are able to save $500 in your annual interest on a $100,000. In 10 years you would save $5,000.

That means, if you have a home equity credit line of around $500,000 your savings will be $2,500 a year!

In the end, the question that it all comes down to is whether it is worth it or not. Ultimately, you are saving money, which is what matters – well to me anyways icon smile RBC: Switch and Get 0.5% Knocked Off Instantly! .

What do you think of RBC’s promotion?

 

 

About the Author

Sensei

My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top. I love everything there is about Canada and everything financially related to Canadians. I write deily posts from Canadian Banks to Credit Card information.

Comments (4 )



jane Wrote:

TD has a great program in place. They now offer Secured Lines of Credit and it is based on clients credit. It can give you a great rate, not necessarily prime + 1%. Talk to a TD branch or a mobile mortgage specialist, you might be presently surprised.

[Reply]

George Schandl Wrote:

I have the RBC Homeline plan. Despite my excellent credit, carry no balance on my RBC Avion ViISA and never missed a mortgage payment, RBC increased my HELOC from 3% to 3.5%. I received the letter in June and it stated it was to keep consistent with current market conditions. The Regional VP explained costs have risen. Luckily I only have 8 more months and will be pulling ALL of business out of RBC. They are nasty bunch. Ironically I received this letter I am happy to share on the Bank Nerd site when RBC Credit Rating was downgraded by 2 notches by Moody’s. The only Canadian Bank to receive this distinction.

[Reply]

Sensei Reply:

Sorry to hear about your recent increase. We are happy you shared you story. It is strange why some banks increase their interest rates despite how great a client you are to them. Do you have any particular bank in mind where you will be going to after you leave RBC?

[Reply]

George Schandl Reply:

I am contemplating going to a BC Credit Union. Coast Capital, Vancity, or Westminister Savings. I think a mid size Credit Union will work harder and dictate policy more to their members than shareholders. RBC is going thru tough times in my opinion. Recently the only Canadian Bank to have their credit rating downgraded not by one but by two levels…..Ironically around the same time they raised my rate.. RBC was the only bank to raise mortgage rates on two of their products yesterday as noted lead business story on TV and radio news here. Did you have any ideas for me to consider? Thank you.

[Reply]

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