dp jain,
I am looking for a financial planner. Just sent you a pm
T
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"The grass is not, in fact, always greener on the other side of the fence. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be"
Quote:
Originally posted by Timon
dp jain,
I am looking for a financial planner. Just sent you a pm
T
Hi Timon,
Pl. check your inbox. I have replied your mail.
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Live and Let Live. Together we can make a difference.
DP JAIN, CPA, CGA, CPA (US), CA(I), LL.B.(I)
416-305-0080
(Loans, Mortgage, Tax, Accounting, Investments)
With doing borrowing to invest option, which involves taking a loan to invest,
does that show up on ur credit file/history differently?
Meaning would that affect ur history while applying for mortgage? Since banks/institutions do look at ur history and ur current loans while giving mortgage.
Was told that this borrowing to investment loan shows up as a lien on ur credit file and does not affect ur history while applying for mortgage.
Is that true?
Quote:
Originally posted by pramesh
With doing borrowing to invest option, which involves taking a loan to invest, does that show up on ur credit file/history differently?
Meaning would that affect ur history while applying for mortgage? Since banks/institutions do look at ur history and ur current loans while giving mortgage.
Was told that this borrowing to investment loan shows up as a lien on ur credit file and does not affect ur history while applying for mortgage.
Is that true?
It may or may not show up on your credit file depending on the institution you take the investment loan from. If the institution reports it to the credit bureau then yes it would show up there but it does not affect your credit history adversely.
However, at the time of taking the mortgage this loan installment needs to be taken in to GDS and TDS calculations, which may affect the amount of mortgage loan you may qualify for.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Location: carl sagan's universe
Posted on: 06-05-07 21:19:46
Quote:
Originally posted by pramesh
With doing borrowing to invest option, which involves taking a loan to invest,
does that show up on ur credit file/history differently?
Meaning would that affect ur history while applying for mortgage? Since banks/institutions do look at ur history and ur current loans while giving mortgage.
Was told that this borrowing to investment loan shows up as a lien on ur credit file and does not affect ur history while applying for mortgage.
Is that true?
There are several institutions that will lend you money for investments (investment loan) and will not report the loan to the credit bureau.That is the loan will not show up on your credit bureau, period. Nor differently nor as a lien nor otherwise. A big nada of the loan will show up.
The only thing that will show up is a hit from the lending institution. That is if the lending institution (LI)gives you the investment loan, the loan itself will not show up but what will show up is the request the LI made to the credit bureau to ask for your credit rating in order to approve your loan.
When you apply for the mortgage thereafter, as far as the LI that approves your mortgage, it will be oblivious of the fact that you have an investment loan.
That is the Smith/Snyder manoeuvre in reverse.
Snazzy financial strategy.
That's where the ethics come in to play.
If you tell the lending institution / your mortgage broker about this or any other loan which is not reported in to the Credit Bureau, the lender / broker should ethically take this installment in to consideration for calculating the GDS / TDS ratio. However, if the 'investment loan' is taken after the mortgage approval / closing then it would not affect you in any way.
You can plan things accordingly.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Pramod, nice and interesting replies....
I think you and me will be best friend for a while. :-)
Dinesh
