Canadian LOC Rates: Up, Down, or Holding Steady?

In case you haven’t noticed, the rates many Canadians are paying for their lines of credit have been rising in recent days – even though the benchmark rate of the Bank of Canada has been falling. Is it simple greed – or is there another explanation that makes more sense?

Here’s the story: There’s a better explanation, and it has to do with where your lender gets the money they lend to you on your line of credit. This cash comes from one of two places: Deposits and the wholesale lending market.

There’s a really good article that explains this, as well as the connection between what commercial paper is worth on a day-to-day basis and its future value when it actually matures. Canada could be changing the rules in the near future, so read the entire article yourself so you can see what may be coming in the not-too-distant future by following this link:

http://www.theglobeandmail.com/servlet/story/LAC.20090408.REXPLAINER08ART1927/TPStory/Business

Need to unlock your home's equity - but have a few questions? Why not consider a free private email consultation with me, Darrin Roseborsky? There's no obligation or commitments to worry about. Just helpful answers to your questions. Use the short form in the top-right corner to get started. And in a few minutes, you'll have the answers to all of your questions.