How bank "line of credits" work ?
A Personal Line of Credit (PLC) at banks like CIBC works as a flexible, reusable pool of funds where you only pay for what you use . Unlike a credit card, interest begins accruing the moment you withdraw money; there is usually no "interest-free" grace period Current Interest Rates CIBC rates are variable and based on the CIBC Prime Rate , which is currently 4.45% (as of February 25, 2026). WOWA.ca +1 Unsecured PLC : Typically Prime + a personal percentage (often resulting in 7%–12% total). Secured PLC (Home Power Plan) : Often offered at or near Prime. Introductory Offers : CIBC occasionally offers a low introductory rate equal to Prime for a set period. CIBC +4 How Repayment Works You can pay it back like a credit card with flexible "small installments," provided you meet the monthly minimum. CIBC +1 Minimum Payment : For a CIBC Personal Line of Credit, the minimum monthly payment is typically 3% of the b...