Borrowing money for the first time in Canada
Aug 15th 2019, 5:36 pm
#1
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Borrowing money for the first time in Canada
Hi all
My husband and I have been living here for 3 years now, neither of us have well paid jobs but we have an opportunity to buy into the company he works for. This will give us better salaries.
We we thought we would start by asking credit union for the money but they have said no. We are only asking for $30k secured against our home which has no mortgage. We stupidly volunteered information about our property in the UK thinking that we would look better having multiple assets. They have rejected us based on the fact we have a mortgage there even though it’s rented and the rent covers the repayments with money to spare. We also have 8 months worth of payments in the bank should there be an issue. The LTV on that is pretty low at 35%.
Any thoughts? Feeling a bit stuck and like there’s always something standing in the way of us progressing here.
My husband and I have been living here for 3 years now, neither of us have well paid jobs but we have an opportunity to buy into the company he works for. This will give us better salaries.
We we thought we would start by asking credit union for the money but they have said no. We are only asking for $30k secured against our home which has no mortgage. We stupidly volunteered information about our property in the UK thinking that we would look better having multiple assets. They have rejected us based on the fact we have a mortgage there even though it’s rented and the rent covers the repayments with money to spare. We also have 8 months worth of payments in the bank should there be an issue. The LTV on that is pretty low at 35%.
Any thoughts? Feeling a bit stuck and like there’s always something standing in the way of us progressing here.
Aug 15th 2019, 6:06 pm
#2
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Re: Borrowing money for the first time in Canada
Hi all
My husband and I have been living here for 3 years now, neither of us have well paid jobs but we have an opportunity to buy into the company he works for. This will give us better salaries.
We we thought we would start by asking credit union for the money but they have said no. We are only asking for $30k secured against our home which has no mortgage. We stupidly volunteered information about our property in the UK thinking that we would look better having multiple assets. They have rejected us based on the fact we have a mortgage there even though it’s rented and the rent covers the repayments with money to spare. We also have 8 months worth of payments in the bank should there be an issue. The LTV on that is pretty low at 35%.
Any thoughts? Feeling a bit stuck and like there’s always something standing in the way of us progressing here.
My husband and I have been living here for 3 years now, neither of us have well paid jobs but we have an opportunity to buy into the company he works for. This will give us better salaries.
We we thought we would start by asking credit union for the money but they have said no. We are only asking for $30k secured against our home which has no mortgage. We stupidly volunteered information about our property in the UK thinking that we would look better having multiple assets. They have rejected us based on the fact we have a mortgage there even though it’s rented and the rent covers the repayments with money to spare. We also have 8 months worth of payments in the bank should there be an issue. The LTV on that is pretty low at 35%.
Any thoughts? Feeling a bit stuck and like there’s always something standing in the way of us progressing here.
Aug 15th 2019, 6:17 pm
#3
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Re: Borrowing money for the first time in Canada
I can imagine the credit union's hesitation is because what you're using the loan money for, to buy shares in a company. If the value of the company tanks for example, they are likely afraid that you will walk away and not pay back the loan, even if it is secured against your house. If you were using the money to buy a physical asset (car, etc.), or something with less risk, they'd probably be ok with it.
I think dbd has the right idea, remortgaging part of your current home's value is probably the best way to get some more money no questions asked. Maybe avoid saying what you're using the money for if you can.
I think dbd has the right idea, remortgaging part of your current home's value is probably the best way to get some more money no questions asked. Maybe avoid saying what you're using the money for if you can.
Aug 15th 2019, 6:36 pm
#4
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Re: Borrowing money for the first time in Canada
I can imagine the credit union's hesitation is because what you're using the loan money for, to buy shares in a company. If the value of the company tanks for example, they are likely afraid that you will walk away and not pay back the loan, even if it is secured against your house. If you were using the money to buy a physical asset (car, etc.), or something with less risk, they'd probably be ok with it.
I think dbd has the right idea, remortgaging part of your current home's value is probably the best way to get some more money no questions asked. Maybe avoid saying what you're using the money for if you can.
I think dbd has the right idea, remortgaging part of your current home's value is probably the best way to get some more money no questions asked. Maybe avoid saying what you're using the money for if you can.
Aug 15th 2019, 6:41 pm
#5
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Re: Borrowing money for the first time in Canada
I can imagine the credit union's hesitation is because what you're using the loan money for, to buy shares in a company. If the value of the company tanks for example, they are likely afraid that you will walk away and not pay back the loan, even if it is secured against your house. If you were using the money to buy a physical asset (car, etc.), or something with less risk, they'd probably be ok with it.
I think dbd has the right idea, remortgaging part of your current home's value is probably the best way to get some more money no questions asked. Maybe avoid saying what you're using the money for if you can.
I think dbd has the right idea, remortgaging part of your current home's value is probably the best way to get some more money no questions asked. Maybe avoid saying what you're using the money for if you can.
It could be, they didn’t mention that though but I know they can be funny about what you want it for. They seemed more concerned with the UK mortgage though. Apparently they can’t include the property as an asset because it’s in another country but can include the debt from it. Wondering if I should just not mention the property the next time. Credit union asked about it because I showed them our tax documents that declare it.
Aug 15th 2019, 6:44 pm
#6
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Re: Borrowing money for the first time in Canada
what do you mean by “vig”?
Aug 15th 2019, 7:02 pm
#9
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Re: Borrowing money for the first time in Canada
Are there any loan companies or government schemes that specifically deal with newcomers and helping them with businesses etc? I’m sure not really having any credit history here doesn’t help. Not sure we are still classed as newcomers though if we have been here for 3 years.
Aug 15th 2019, 10:29 pm
#10
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Re: Borrowing money for the first time in Canada
Are you talking about this scheme - home equity loan - or have you just applied for a personal loan?
The HEL seems fairly straightforward involving only income proof and the property you have the equity in. You may have to pay a fee for that valuation.
The HEL seems fairly straightforward involving only income proof and the property you have the equity in. You may have to pay a fee for that valuation.
Aug 15th 2019, 10:36 pm
#11
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Re: Borrowing money for the first time in Canada
Are you talking about this scheme - home equity loan - or have you just applied for a personal loan?
The HEL seems fairly straightforward involving only income proof and the property you have the equity in. You may have to pay a fee for that valuation.
The HEL seems fairly straightforward involving only income proof and the property you have the equity in. You may have to pay a fee for that valuation.
Aug 15th 2019, 10:47 pm
#12
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Re: Borrowing money for the first time in Canada
If you have a look at the link (see if it sounds like what you did) and then look at some bank websites, you can apply on line and see what questions are asked. Try going through the on line application - you can always cancel from it - and see if there's anything about property other than your current home.
Aug 15th 2019, 11:10 pm
#13
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Re: Borrowing money for the first time in Canada
Yes, but it may not have been the Home Equity type which is quite different to a personal loan which may include home as security.
If you have a look at the link (see if it sounds like what you did) and then look at some bank websites, you can apply on line and see what questions are asked. Try going through the on line application - you can always cancel from it - and see if there's anything about property other than your current home.
If you have a look at the link (see if it sounds like what you did) and then look at some bank websites, you can apply on line and see what questions are asked. Try going through the on line application - you can always cancel from it - and see if there's anything about property other than your current home.
Aug 16th 2019, 5:54 pm
#14
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Re: Borrowing money for the first time in Canada
Secured line of credit - https://www.rbcroyalbank.com/persona...of-credit.html but that is very risky, you could lose not only the business but your home too if the business went under and you couldn't make monthly repayments .
Or a HELOC
https://www.cibc.com/en/personal-ban...E&gclsrc=aw.ds
Or a HELOC
https://www.cibc.com/en/personal-ban...E&gclsrc=aw.ds
Aug 16th 2019, 6:11 pm
#15
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Re: Borrowing money for the first time in Canada
Secured line of credit - https://www.rbcroyalbank.com/persona...of-credit.html but that is very risky, you could lose not only the business but your home too if the business went under and you couldn't make monthly repayments .
Or a HELOC
https://www.cibc.com/en/personal-ban...E&gclsrc=aw.ds
Or a HELOC
https://www.cibc.com/en/personal-ban...E&gclsrc=aw.ds
I still have the issue of them not granting me anything though due to no credit history and a “large” uk mortgage. I was even initially turned down last year for a measly $500 overdraft.