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I recently applied for a PSLOC at three banks (CIBC, Scota, and TD) and all three asked for a cosigner which for Scotia I did provide however Scotia mentioned that my cosigner is not strong enough even though he has a great credit score >700 and a high income. Does anyone know what they look for in a good cosigner as the agent was unfortunately not informative on this matter? The only thing I can think of is that my cosigner has approximately 20-30k in student loans remaining but given the other two aspects, I would think that they could overlook the debt. Also, does anyone know how much bursary do universities provide for students who need the financial help as I am currently thinking of either applying for part time jobs or even waiting an extra year to get my financial situation in better shape.

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Posted (edited)

I'm very sorry to hear of your situation. Your post wasn't entirely clear though. You mentioned that Scotiabank weren't happy with your cosigner. What about CIBC and TD? Have you also contacted RBC? 

Edited by NapoleonBonaparte

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2 minutes ago, NapoleonBonaparte said:

I'm very sorry to hear of your situation. Your post wasn't entirely clear. You mentioned that Scotiabank weren't happy with your cosigner. What about CIBC and TD? Have you also contacted RBC? 

From what I'm making of this, OP has only submitted a cosigner to Scotia, hasn't filed one with the rest.

 

OP, credit score and income isn't the only factor in cosigning. The things they look for can be slightly different. Perhaps that high income cosigner has a high income, but it may not be a stable stream, or it may have been recently come across. Seeing as you say they still carry a lot of student loans, they're a relatively recent graduate and may not have shown the job is stable. Debt to income ratio is also a decent factor, and it's possible their own student loans, when combined with yours, exceeds their guidelines. If neither of you are Canadian citizens, it's yet another risk as if you both leave the country they have no recourse. It's smaller factors like this, not just your cosigner's actual credit score. Hell, TD wouldn't extend a PSLOC to me without a cosigner even though my TU score was a hair under 800.

 

If I remember right, there are some reliefs (depending on the school you are attending) for those in serious need of funding and can demonstrate that they do not qualify for either government or bank loans. You will have to prove that you've done everything in your power to attempt to secure those sources of funding before any will be extended to you by the school. Contact your institution's Financial Aid office, the school pours money into that department for a reason.

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1 hour ago, NapoleonBonaparte said:

I'm very sorry to hear of your situation. Your post wasn't entirely clear though. You mentioned that Scotiabank weren't happy with your cosigner. What about CIBC and TD? Have you also contacted RBC? 

No, I've only asked my cosigner to sign for Scotia as of right now. My assumption is that if Scotia, TD, and CIBC dont accept the application, no other bank probably would. If someone has any other experience, I would greatly appreciate if they could let me know.

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1 hour ago, RNGesus said:

From what I'm making of this, OP has only submitted a cosigner to Scotia, hasn't filed one with the rest.

 

OP, credit score and income isn't the only factor in cosigning. The things they look for can be slightly different. Perhaps that high income cosigner has a high income, but it may not be a stable stream, or it may have been recently come across. Seeing as you say they still carry a lot of student loans, they're a relatively recent graduate and may not have shown the job is stable. Debt to income ratio is also a decent factor, and it's possible their own student loans, when combined with yours, exceeds their guidelines. If neither of you are Canadian citizens, it's yet another risk as if you both leave the country they have no recourse. It's smaller factors like this, not just your cosigner's actual credit score. Hell, TD wouldn't extend a PSLOC to me without a cosigner even though my TU score was a hair under 800.

 

If I remember right, there are some reliefs (depending on the school you are attending) for those in serious need of funding and can demonstrate that they do not qualify for either government or bank loans. You will have to prove that you've done everything in your power to attempt to secure those sources of funding before any will be extended to you by the school. Contact your institution's Financial Aid office, the school pours money into that department for a reason.

Thanks for the detailed response. I'll definitely contact my school and see if they can help. Hopefully that along with a few hours of work each week would help me financially without affecting my grades.

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Posted (edited)
17 minutes ago, iameli said:

No, I've only asked my cosigner to sign for Scotia as of right now. My assumption is that if Scotia, TD, and CIBC dont accept the application, no other bank probably would. If someone has any other experience, I would greatly appreciate if they could let me know.

Don't assume anything. You need to exhaust all your options. If you go through the other threads you will see that there are a lot of people here who were given different terms by different banks or some who were even accepted by one bank and rejected by another. I also suggest considering another cosigner, if that is an option. An older relative, perhaps?

Edited by NapoleonBonaparte

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31 minutes ago, NapoleonBonaparte said:

Don't assume anything. You need to exhaust all your options. If you go through the other threads you will see that there are a lot of people here who were given different terms by different banks or some who were even accepted by one bank and rejected by another. I also suggest considering another cosigner, if that is an option. An older relative, perhaps?

Unfortunately, that's the only family member I have in Canada One of the members here just messaged me to look into a secured LoC with home equity, am gonna look into that next to see if that's an option or not as my cosigner does own a house (paying mortgage on it). 

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Do you know what factors are requiring you to need a co-signer in the first place? Low credit score? Late payments? 

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1 hour ago, Toad said:

Do you know what factors are requiring you to need a co-signer in the first place? Low credit score? Late payments? 

Bad credit, collections, a history of late payments. Those are three possibilities which come to mind.

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1 hour ago, Toad said:

Do you know what factors are requiring you to need a co-signer in the first place? Low credit score? Late payments? 

low credit score and high debt from student loans were what the bank mentioned.

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14 minutes ago, iameli said:

low credit score and high debt from student loans were what the bank mentioned.

 

You may want to run a free credit check from Borrowell or CreditKarma to see the specifics of your credit report. 

Banks generally don't care about government student loans for PSLOCs unless it exceeds $60,000. 

I assume you don't have any collections on your report because you'd probably be rejected without the option of a co-cosigner if that was the case. So I'd guess it's either late payments or high utilization causing a low credit score. Depending on what the issue is, you may be able to fix your score pretty quickly. 

 

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13 hours ago, Toad said:

Do you know what factors are requiring you to need a co-signer in the first place? Low credit score? Late payments? 

Mortgage

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Try a different rep? I have lots of debt and okay-ish credit and Scotia didn't want a co-sign. 

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2 hours ago, easttowest said:

Try a different rep? I have lots of debt and okay-ish credit and Scotia didn't want a co-sign. 

Am gonna try that however I did call them again and the issue seems to be the TDSR for the joint account. (both together) Anyone has any idea how low it has to be for it not be a negative factor? 

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Posted (edited)

Definitely try a different rep. I was declined my first time too. I went back the next day and asked to speak to someone else and they accepted me WITHOUT a co-signer. I was told the other guy was a trainee.

Edited by Trew

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9 minutes ago, iameli said:

Am gonna try that however I did call them again and the issue seems to be the TDSR for the joint account. (both together) Anyone has any idea how low it has to be for it not be a negative factor? 

You've completely lost me. It sounds like there is more to your situation than mine. Keep trying reps though; it is strange that Scotia, of all places, would deny you. They usually like law students. 

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1 hour ago, iameli said:

Am gonna try that however I did call them again and the issue seems to be the TDSR for the joint account. (both together) Anyone has any idea how low it has to be for it not be a negative factor? 

If TDSR is an issue that means that your co-signor does not have enough income to support the debt they are trying to co-sign for. You mentioned that your co-signor owns a house with a mortgage on it, so they would have to be able to support their existing mortgage/housing payments, any other debt they may have (credit cards/LOCs/car loans/student loans etc.) and the total amount of the LOC you are looking to get on their income. The calculation of TDSR goes something like this:

[ Housing costs (mortgage payment, heat, property tax) + monthly debt payments (credit cards, LOCs, loans) ] / Gross income = TDSR

As to what they would deem an acceptable TDSR is what the question is, but I doubt they would look at anything over 40%.

The required payment on a $135,000 LOC would be over $1,300 alone based on rates right now, so they would need to be able to carry that above and beyond what their current commitments are. 

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OP I was in a pretty similar situation. I'm not sure what schools you got into, but that can boost your chances. Osgoode has a pretty generous needs-based bursary program, just as an FYI. Anyway, shop around for both banks and reps. Bring in EVERYTHING you can think of that would sway a rep to forgo a co-signer. Any offer letters you got (print out the e-mail ones if that's how they sent it), create a budget for the next few years, anything you can think of that will make you appear to be less of a risk. 

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Try BMO. I was declined by Scotia back in 2012 even with a cosigner, and BMO came through for me.

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2 minutes ago, ericontario said:

Try BMO. I was declined by Scotia back in 2012 even with a cosigner, and BMO came through for me.

Thanks for the info. Did you get the loc with a cosigner or without? 

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