Mortgage and Med LOC?

[ILuvCrossFit]

Hey Guys,

I hope this hasn't been answered anywhere else - I searched for it - but anyways... does anyone know if having a mortgage affects getting a med LOC? I'm 23 and have a mortgage to myself (i.e. no cosigner) and am hoping that I will be starting med school soon. One of my friends in med said that they deduct anything else you owe (including a mortgage) from the LOC value. Which would mean about $250 000 - $200 000 = $50 000. or Nothing. :S Any insight would be appreciated.

[Jochi1543]

No, because a mortgage is secured debt.

[aaronjw]

No, because a mortgage is secured debt.

I'm sure some banks in the US would think otherwise lol

[future_doc]

The only country in the world with so many homes under water. Only in America!

[RbcUBC.Med/Dental.LOC.rep]

At RBC Royal Bank, our Professional Student Royal Credit Line for Dental and Medical students are non-cumulative, that means as long as you are accepted into dental school, we can lend the maximum $250,000.

Hope this helps.

Da-Ke Zhao
UBC Student Lending
UBC Wesbrook Village Branch
5905 Berton Ave.
Vancouver, BC, V6S 0B3
T.604.221.5736
F.604.221.5729

[japlanet]

Has anyone done the reverse? I.e. what are people's experiences getting a mortgage when you already have a $150,000 LOC? Could you use some of your LOC for the downpayment?

[justletmein]

Has anyone done the reverse? I.e. what are people's experiences getting a mortgage when you already have a $150,000 LOC? Could you use some of your LOC for the downpayment?

as a student with no income and 150,000$ LOC (which btw, even if you havent used a dime they consider the full amount as potential debt) it will be VERY difficult to secure a mortgage unless you have a significant other with income or parents who are willing to cosign.

The topic of buying a property while in med school has been beaten to death on these forums, and the general consensus is that it's a terrible idea outside of certain circumstances.
Use the search function to see the discussions.

[justletmein]

sorry i just noticed you are graduating this year.

Even with a LOC, you shouldn't have a problem getting a mortgage with a resident salary. The dollar amount, however, will depend on your personal financial situation.

[japlanet]

Yeah, I actually haven't touched the LOC yet. So was hoping to use all or most of it to put a 50-60% downpayment and get a relatively smaller mortgage. With two incomes (would be co-borrowing with hubby) I think this should be ok, just wondering if other people have tried this.

[MedPen]

Yeah, I actually haven't touched the LOC yet. So was hoping to use all or most of it to put a 50-60% downpayment and get a relatively smaller mortgage. With two incomes (would be co-borrowing with hubby) I think this should be ok, just wondering if other people have tried this.

I got a mortgage as a med student with an LOC at RBC. It wasn't a problem that I had a LOC and they approved me automatically.

[justletmein]

Yeah, I actually haven't touched the LOC yet. So was hoping to use all or most of it to put a 50-60% downpayment and get a relatively smaller mortgage. With two incomes (would be co-borrowing with hubby) I think this should be ok, just wondering if other people have tried this.

you should probably think twice before putting that much down on your LOC.

mortgage rates are super cheap these days. Mine is well below prime, so less interest than my LOC.

[japlanet]

you should probably think twice before putting that much down on your LOC.

mortgage rates are super cheap these days. Mine is well below prime, so less interest than my LOC.

Good to know. I just assumed that the LOC would be cheaper (not to mention, more flexible payment terms) but looking at some of the mortgage offers out there I see that I might be able to do better.

[Jochi1543]

Good to know. I just assumed that the LOC would be cheaper (not to mention, more flexible payment terms) but looking at some of the mortgage offers out there I see that I might be able to do better.

I think it's best to put down a minimum of 20%, though. If you put down less than that, then you have to pay an extra insurance premium. So consider that when you make the decision, also.

[justletmein]

I think it's best to put down a minimum of 20%, though. If you put down less than that, then you have to pay an extra insurance premium. So consider that when you make the decision, also.

Good point.
20% is probably the magic number so you dont need CMHC insurance.
But other than that, just shop around for the best rates.
I went with a mortgage broker which costs nothing since they make comission from the banks, and I ended up using the rate he quoted me to negotiate with my bank of choice for the same rate. Sucks for the broker but he will get over it lol. GL.

[xylem29]

At RBC Royal Bank, our Professional Student Royal Credit Line for Dental and Medical students are non-cumulative, that means as long as you are accepted into dental school, we can lend the maximum $250,000.

Hope this helps.

Da-Ke Zhao
UBC Student Lending
UBC Wesbrook Village Branch
5905 Berton Ave.
Vancouver, BC, V6S 0B3
T.604.221.5736
F.604.221.5729

Do you know if the maximum of $250,000 is Canada wide or just for UBC students?

[RbcUBC.Med/Dental.LOC.rep]

Hi xylem29,

The maximum limit is 250K for all dental and medical student in Canada, not just limited to UBC students.

If your credit line is for an amount less than 250K, you can speak to your banker to have it increased.

Hope this helps,


Da-Ke Zhao
UBC Student Lending
UBC Wesbrook Village Branch
5905 Berton Ave.
Vancouver, BC, V6S 0B3
T.604.221.5736
F.604.221.5729

[lostintime]

Yeah honestly get out of a bank asap if they can't offer that or give you trouble like mine did and was a huge nightmare. PM if you want details. For anyone who cares, make the right choice the first time for LOC and then you won't suffer needlessly. And it IS important to find someone you can talk to which I didn't think was key 4 years ago. I never want anyone to go through what I did. My person was all "nice" 4 years ago before I signed and once you're in, it can be a whole different game.