Loans from banks, cosigner eligibility?

[bundleofgreen]

So here's my situation: I'm going to a med school in the U.S. next year, my parents and I are all canadians, but we don't have green card or citizenship in u.s. despite having lived here in a long time.

 

And my question is: what are the requirements for the co-signer to loan from canadian banks? I called one bank and was told they need sufficient income or property in Canada, which my parents don't have. How strict was the application process for you guys? What requirements did your cosigners have to meet to be eligible?

 

Further, how likely is it to get a loan by myself? I left canada before the age of 16 so I've never worked there or have any banking relationships.

 

Any advice/help would be really appreciated since I can't loan in the U.S. either.

 

Thanks!

[twinklystar_hp]

Getting a loan through canadian banks for studies abroad is become quite a difficult process. I don't think there is any bank here that would give you a loan without cosigners. I am not sure if your parents could be your cosigners, because, from what I understand, the banks need the cosigners to be currently residing in canada - they need someone living here to be responsible for the loan, after we leave the country.

 

As for the cosigner requirements: sufficient income is pretty much a must (the amount varies with different banks, but definitely 35K+), as well as a strong credit score (minimum is 680). The only bank that is somewhat flexible on their requirements from cosigners is RBC, but most of the other banks are pretty strict about these requirements. They'd also need the cosigners to provide recent paystubs, plus last 2 (or 3) years' notice of assessments.

 

I think you have two options right now: either find a relative of family friend who resides here in Canada, has a good income and credit history, and is willing to cosign for you. Or find a US cosigner who can help you get one of the private loans there, like Sallie Mae. good luck! =)

[keith_015]

When I went through the process a few years ago with RBC, my parents were acting as cosigners for me. They had to disclose all assets and had to loan against them (ie. house, ?investments?). They were pretty firm about this and as such, I had to seek another cosigner to be able to sign for the rest of the amount I was seeking.

 

On your own, you would have no way of securing a Cdn loan. Part of this is assets, but part also is accountability. Should you happen to never come back and default on a loan, the bank would have a hard time getting at you, thus requiring a cosigner in Canada for which they have someone to chase after.

[bundleofgreen]

Thanks guys, I really appreciate it.

 

I was just wondering if it's worth trying out different branches of the same bank. Would one bank have significantly more lax rules than another or are they standardized such that if I get rejected by one place I pretty much will be rejected by all?

[keith_015]

The banks are more than likely run on national policy/approval. When I applied, they could not approve my LOC at the bank, but rather send it to a national arm for approval. Branches are really the set-up factor, but ultimately, the approval is elsewhere.

[rmorelan]

The banks are more than likely run on national policy/approval. When I applied, they could not approve my LOC at the bank, but rather send it to a national arm for approval. Branches are really the set-up factor, but ultimately, the approval is elsewhere.

 

Yeah large loans usually have a common underwriter and same policy. In this day and age it is all connected.

[twinklystar_hp]

when I went to one cibc branch, they said that they do give loans for schools outside of canada.. but when I called another cibc branch, the rep there told me they don't give any loans for outside of canada, and that even the son of the branch manager ended up getting declined for a loan for a school outside of Canada... i found that bit of discrepancy there bit wierd..

 

you'd also have many instances where one branch tells you that you wouldn't need a cosigner, while another would tell you that you would..

 

at the end of the day though, the differences in information you do get from the various branches is mostly due to a lack of information on the representatives' parts, then an actual difference in policy.. the policies are pretty much the same.

[future_doc]

Thanks guys, I really appreciate it.

 

I was just wondering if it's worth trying out different branches of the same bank. Would one bank have significantly more lax rules than another or are they standardized such that if I get rejected by one place I pretty much will be rejected by all?

 

A total waste of time to go branch shopping. As stated above, you will need a highly solvent cosignor living in Caada with assets & income in Canada who the bank can look to for full payment should you default.

 

At the end of the day, if you are unable to find financing, you may need to apply in Canada.

[jawn_doe]

I'm currently in the process of getting a student LOC. I needed a cosigner, just cause its international. I just have a question about that most banks have limits on how much you can take out. I know national bank lets you use like 50,40,30, 30 each year as you progress to a max of 150k, and hold the other 50k for residency. Obviously these are geared towards Canadian med schools where this would be totally fine, but for the US, my first year tuition is 60k alone.

 

So do banks let you take out more or what do people do then?

And can you get more money if you run out, like get approved for more? Cause my total will be over like 350k with living...

[keith_015]

I'm currently in the process of getting a student LOC. I needed a cosigner, just cause its international. I just have a question about that most banks have limits on how much you can take out. I know national bank lets you use like 50,40,30, 30 each year as you progress to a max of 150k, and hold the other 50k for residency. Obviously these are geared towards Canadian med schools where this would be totally fine, but for the US, my first year tuition is 60k alone.

 

So do banks let you take out more or what do people do then?

And can you get more money if you run out, like get approved for more? Cause my total will be over like 350k with living...

 

I told RBC I wanted $320k two years ago when I was close to going to the US. Bring in a copy of your estimated cost of attendance and acceptance letter and go from there. Be aware that the entire amount will have to be cosigned for (but you can always have multiple cosigners).

[Oliver86]

Hello, I'm interested in going to the Caribbeans but my cosignor is a U.S. citizen and not Canadian. RBC and TD told me that they need a Canadian individual. Is there a way around it?

[Thomas86]

Hello, I'm interested in going to the Caribbeans but my cosignor is a U.S. citizen and not Canadian. RBC and TD told me that they need a Canadian individual. Is there a way around it?

 

then why not go to the US and get it done through the banks in America