Posted on: 16-06-06 08:04:35
I have to borrow abt $20k for some urgent needs back in desh. I spoke to my bank. They are offering unsecured LOC at 8.75% (6+2.75). This can be done fast, I am told. For secured LOC on the house (I already have a mortgage), I am told, takes three weeks and for an amount of $20k that's not worth the time spent on it (it's their reply). If I take secured, I can save $550.
Any thoughts?
DIO
Quote:
Originally posted by desi in ottawa
I have to borrow abt $20k for some urgent needs back in desh. I spoke to my bank. They are offering unsecured LOC at 8.75% (6+2.75). This can be done fast, I am told. For secured LOC on the house (I already have a mortgage), I am told, takes three weeks and for an amount of $20k that's not worth the time spent on it (it's their reply). If I take secured, I can save $550.
Any thoughts?
DIO
Hi DIO,
You have couple of options.
If you need the funds urgently, go for the unsecured line of credit now and complete your work. The unsecured LOC would not cost you any thing.
Later on apply for the secured LOC and clear the unsecured and that way you would save in interest difference.
However, mind you that the secured LOC may cost you some leagal costs and you can confirm the amount from the bank. Sometimes, the banks waive that legal costs also, if the LOC is for a minimum of $25,000 or so and it entirely depends on your bank and your relation (business) with your personal banker.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks Pramod. You gave a very good idea. Much appreciated.
