Interest rates

[Marker]

If it's an "unsecured" LOC....yes,but,if it's secured by your home equity,reduce it to zero and consider using it as a hedge against mortgage theft or fraudulent conversion. Because it's a registered instrument,nobody can convert it at a Land Registry Office without the bank's due diligence. The more checks and balances,the better. Mortgage theft is still a huge problem in Canada.

This is good advice, especially considering the recent news reports of mortgage theft which IMO educate the criminals how to do it just as much as it educates the home owner in how to prevent it.

[JBen]

I know what it means, and a whole bunch more it is my business (kinda),
But that's why I posed as a question, I don't monitor the spreads day in/day out.

Best advice I can give anyone as both a fully liscenced wealth advisor and more.
If your willing to spend 12, 24, 36, 48, 72hrs..One week or 3weeks
Prices comparing and shopping new cars, trips, boats, guns......dog breeders...
Finding a good real estate agent
Finding a good job.
Finding a good electrician/plumber/roofer

Find a good wealth advisor, its worth the investment of time. They can help you with this stuff.

[Marker]

I know what it means, it is my business (kinda),
But that's why I posed as a question, I don't monitor the spreads day in/day out

I may have misinterpreted your question, I negotiated my rates and locked in about 15 yrs ago so the 'spread' may be different now.

[JBen]

You did well
And hope my delivery wasn't/isn't off.

Stuff like this (how it pertains) to peoples overall wealth/credit. It's like many threads when people ask for electrical advice, or this that. No "harm", rights/wrongs...Imo take it all in.

And when talking to an advisor--see if what the advisor is saying jives with things read, learned, picked up.
Might help you decide on one.

But at the end of the day, if you needed to re-wire your house, or change a panel........
Doing it yourself?
Picking the first name out of 411?

[fishy steve]

Marker are you sure 6% is unsecured?
Prime is currently 2.85%
Prime plus 3 would I think be more in line with a secured.

my unsecurd LOC is 6.4%...

[JBen]

As I said, I don't monitor the spreads. Prime +3 is good for unsecureds, I'd have thought it was higher.
Given that they are unsecured, and it is an open loan.
Nowhere near this simple but.
Believe it not, cash flows are important to banks/financial institutions. They need to know how many billions are coming in each day, and how many billions out. By early morning treasury knows if on that day they need to raise funds, or have excess based on all the banks business, and transactions scheduled for that day. Other institutions are lending or borrowing to each other. Normally by 1pm books are closed.

If short on any day, your raising "overnight" funding, if long your long and no financial institution like sitting on money over night. So they are lending it "overnight". Thats why there are penalties for paying off loans early. When you take a loan for X, the bank counts on those monthly payments to be there for whatever term the loan happens to be. When you pay it off it early, those future cash flows/interest payments are gone, and it could cost them money (depending on a million funding variables).

No bank has billions and billions and trillions of cash to "lend"