Jump to content

Recommended Posts

Hey Everyone,

I have a general inquiry regarding student lines of credit. I was wondering if you can have  two student lines of credits from two separate banks, for instance, a professional student line of credit from Scotiabank and another one from CICBC. Please let me know if this is possible, as well as, your opinions on getting two LOCs. Thank you!

Share this post


Link to post
Share on other sites

I’m not sure if banks would do this, but if they do, it would likely affect the amount you can receive. For example, you will not likely get $100,000 from both CIBC and Scotia at the same time. Maybe they would be okay with you having $50k at each?

Why would you even want to do this? You are just creating more paperwork for yourself and more of a headache when it comes to repayment. Off the top of my head, there is no situation in which this would be beneficial. 

Edited by ottawhat

Share this post


Link to post
Share on other sites
32 minutes ago, GeorgeLaw6 said:

Hey Everyone,

I have a general inquiry regarding student lines of credit. I was wondering if you can have  two student lines of credits from two separate banks, for instance, a professional student line of credit from Scotiabank and another one from CICBC. Please let me know if this is possible, as well as, your opinions on getting two LOCs. Thank you!

The application will require you to disclose the open lines of credit you have (They'll see it by running a credit check). You'll probably get rejected for the second one based on that alone.   

  • Like 2

Share this post


Link to post
Share on other sites

The application also takes your debts into account, so if you have one, max it out, then try and get another they will see it (alone with OSAP) and base their decision on that. SO I'd say there is almost no chance of two banks allowing you to have a PSLOC at the same time. My current bank (I use Scotia for PSLOC, and CIBC for my normal account) keeps trying to offer me personal lines of credit for 10k though so you might have that option if you bank with two places, but I am pretty sure you won't be able to have two PSLOC's. 

Share this post


Link to post
Share on other sites

I have a friend who opened PSLOCs at TD, CIBC, and Scotia at the same time recently. I think by opening them at the same time, the banks didn't "know" from his credit report that he was pursuing multiple PSLOCs, although I can't say if he informed them verbally or in writing about his intention. He says two of them have already had funds released and the third is forthcoming. That said, I told him it was probably a bad idea and he may burn bridges if they subsequently notice he has hundreds of thousands of new, undeclared unsecured credit available after they start appearing on his credit report. But time will tell. I think his intention is to invest, as he certainly doesn't need that amount of money for a civil law school.

Play stupid games, win stupid prizes.

Share this post


Link to post
Share on other sites
54 minutes ago, Turtles said:

I have a friend who opened PSLOCs at TD, CIBC, and Scotia at the same time recently. I think by opening them at the same time, the banks didn't "know" from his credit report that he was pursuing multiple PSLOCs, although I can't say if he informed them verbally or in writing about his intention. He says two of them have already had funds released and the third is forthcoming. That said, I told him it was probably a bad idea and he may burn bridges if they subsequently notice he has hundreds of thousands of new, undeclared unsecured credit available after they start appearing on his credit report. But time will tell. I think his intention is to invest, as he certainly doesn't need that amount of money for a civil law school.

Play stupid games, win stupid prizes.

This is contrary to the terms of the Scotia LOC agreement. I assume it is for the other two, as well. I believe if you violate the terms of the Scotia agreement they can demand repayment of the outstanding balance immediately. I again assume that's the same for the other two. This is an exceedingly bad idea.

  • Like 1

Share this post


Link to post
Share on other sites
21 hours ago, Turtles said:

I have a friend who opened PSLOCs at TD, CIBC, and Scotia at the same time recently. I think by opening them at the same time, the banks didn't "know" from his credit report that he was pursuing multiple PSLOCs, although I can't say if he informed them verbally or in writing about his intention. He says two of them have already had funds released and the third is forthcoming. That said, I told him it was probably a bad idea and he may burn bridges if they subsequently notice he has hundreds of thousands of new, undeclared unsecured credit available after they start appearing on his credit report. But time will tell. I think his intention is to invest, as he certainly doesn't need that amount of money for a civil law school.

Play stupid games, win stupid prizes.

This is insane. If the banks run some kind of check before releasing next years funds, he will likely have to pay it all back immediately. This is 100% not allowed under the agreements, which should be incredibly obvious. Your friend needs to smarten up. I can't even imagine their thought process to think this would be a reasonable strategy. 

Share this post


Link to post
Share on other sites
14 minutes ago, WindsorHopeful said:

This is insane. If the banks run some kind of check before releasing next years funds, he will likely have to pay it all back immediately. This is 100% not allowed under the agreements, which should be incredibly obvious. Your friend needs to smarten up. I can't even imagine their thought process to think this would be a reasonable strategy. 

In addition to being against the terms of the PSLOC to obtain others simultaneously, I believe it's also against the terms to borrow the money for the purposes of investing it. Setting himself up for quite a bit of trouble, that fellow.

Anyway, back to the main point: to echo some posters above, the banks will want to restrict the level of credit you will have in total, so at best you would be getting approved for reduced amounts for each bank. Can't conceive of any reason that would be advantageous.

Scotiabank made me reduce the credit limits on all my credit cards and my existing CIBC personal line of credit in order to be approved for their LOC, for example. Because there was a stupid paperwork issue in getting confirmation that one of my limits was lowered, they actually reduced the amount of LOC for which I was approved. They really don't mess around with this stuff, it seems.

-GM

Share this post


Link to post
Share on other sites

I'm pretty sure there's some work around the LOC not being used for investment. I've been advised as such by a scotia rep. Obviously check yourselves but that's what I was told. I still feel queasy about doing it though.

 

I also know way too many med students who own condos with 0 income and 0 cash not withdrawn from a line of credit to think it isn't being done en masse.

Share this post


Link to post
Share on other sites
33 minutes ago, pzabbythesecond said:

I'm pretty sure there's some work around the LOC not being used for investment. I've been advised as such by a scotia rep. Obviously check yourselves but that's what I was told. I still feel queasy about doing it though.

 

I also know way too many med students who own condos with 0 income and 0 cash not withdrawn from a line of credit to think it isn't being done en masse.

Money is fungible, and it’s not like lines of credit have a clause that says they have to be paid off before purchasing securities or something. As long as you have some income, or had some savings, it would be completely reasonable to argue that the line of credit money isn’t being used to invest, it’s just be used ahead of your income/savings.

With that said, I’m sure there’s some general clause that gives the banks wide discretion to accelerate the loan, including if they deem you’re using it improperly. But as long as you’re not an idiot with it, they’re not going to care. 

Share this post


Link to post
Share on other sites
17 minutes ago, BlockedQuebecois said:

Money is fungible, and it’s not like lines of credit have a clause that says they have to be paid off before purchasing securities or something. As long as you have some income, or had some savings, it would be completely reasonable to argue that the line of credit money isn’t being used to invest, it’s just be used ahead of your income/savings.

With that said, I’m sure there’s some general clause that gives the banks wide discretion to accelerate the loan, including if they deem you’re using it improperly. But as long as you’re not an idiot with it, they’re not going to care. 

A med student in his first year buying a condo is in no way a reflection of income to come. At least, I don't think the bank considers a 4 year outlook a reasonable advance on income. And yet med students are buying condos in their 1M.

So, there's a way. But I'd agree that to do that would be unreasonable and dangerous. That's why I'm feeling queasy with it, even though I have certain income for a good chunk of time starting soon!

Share this post


Link to post
Share on other sites
On 7/2/2020 at 1:08 PM, GeorgeLaw6 said:

Hey Everyone,

I have a general inquiry regarding student lines of credit. I was wondering if you can have  two student lines of credits from two separate banks, for instance, a professional student line of credit from Scotiabank and another one from CICBC. Please let me know if this is possible, as well as, your opinions on getting two LOCs. Thank you!

You must notify both banks and you will most likely won't get both LOC.

There are serious consequences  if you lie to the bank on your credit applications.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...