For those planning on using LOC to BUY Housing for Med School

[spiderpig]

How are you planning on achieving this? I mean, how does it work in terms of where money is borrowed from, and who you pay your mortgage to?

 

Also, wouldn't have such a huge asset adversely affect your OSAP funding? Are there any ideas to subvert this? ...Like having a parent purchase housing, and becoming your landlord to whom you pay monthly rent?

 

Any help would be greatly appreciated!!! Time is running out for me to find a (rental) apartment, and not finding anything satisfactory is making me seriously consider putting a down payment on a condo using my LOC.

[cheech10]

You use your LOC as your down payment, then get a regular mortgage for the rest of the house price. You make mortgage payements as usual on that part of the borrowing. On the LOC portion, you only pay the interest portion every month, or you can let it accumulate and compound in the LOC.

 

Eg. Buy a $300,000 condo, using the LOC for $100,000 down and a mortgage for $200,000. Your monthly costs are ~$1,100 for the mortgage, and ~$200 for the LOC, but you don't necessarily need to pay the LOC interest every month, just add it to your principal. Don't forget to add in condo fees as well of $300 to 400 per month, property tax of $150 to 200, cable/internet/phone as applicable, utilities if not included in the condo fees, and insurance of $300 per year.

 

The value your personal residence is not considered an asset for OSAP calculations. It has no effect on your funding.

 

To be honest, I don't think buying a place is worthwile during med school. If you're single, you have no or very limited income, making it difficult to qualify for a mortgage. You'd then be limited to a home less than the value of your LOC (would also need to subtract the portion you'll need for tuition and expenses, and interest compounding if you don't pay the interest every month). What makes more sense IMHO, is to wait until residency, then use the remainder of your LOC as a down payment once your student loans are paid from it. You can qualify for a decent mortgage (~$200,000 on a $50,000 PGY-1 salary) that way and get yourself a decent place, and you'll have a better idea of your expenses. Plus you may be in a different city by the time residency comes along.

[rmorelan]

How are you planning on achieving this? I mean, how does it work in terms of where money is borrowed from, and who you pay your mortgage to?

 

Also, wouldn't have such a huge asset adversely affect your OSAP funding? Are there any ideas to subvert this? ...Like having a parent purchase housing, and becoming your landlord to whom you pay monthly rent?

 

Any help would be greatly appreciated!!! Time is running out for me to find a (rental) apartment, and not finding anything satisfactory is making me seriously consider putting a down payment on a condo using my LOC.

 

in terms of OSAP you principal resisdency does not count as an asset - so for instance I own a cottage and it doesn't affect me at all.

[TheFonz]

Check this thread out, it provides a lot of info: http://www.premed101.com/forums/showthread.php?t=33866

[Kurt01]

I think to help you get the best deals you may opt for a financial advisor who could advise you regarding the financial matters in the long run and thereby help you take right decisions. So, if you are planning to opt for a financial advisor then make a search online.

[Applemanv3]

Dont' all med students have access to MD consultants at a discount rate?