Line of Credit?

klintph · Post by **klintph** » Thu Aug 17, 2006 2:52 am

hey guys, which banks or institution companies do you think gives the best line of credit for flight training and why

Norskman · Post by **Norskman** » Thu Aug 17, 2006 8:43 am

Bank: TD
Why? Because they gave me a line of credit for an absolutely BS reason.

Recommendation? DON'T GET A LINE OF CREDIT FOR GETTING YOUR PPL.
Why? Why pay interest on something you can't even sell later? PPL is not a returnable investement, you can't make money with it. Would you get a loan to take a holiday?

Please clarify if this is for your PPL, CPL, or "Flight College"

weasello · Post by **weasello** » Thu Aug 17, 2006 9:54 am

TD does have aviation-oriented lines of credit, but they do still require collateral. They wouldn't give me one since I don't have a house or pricey car.

At least, that's what they told me. They may have said that because I don't have a credit card

Walker · Post by **Walker** » Thu Aug 17, 2006 1:50 pm

A roommate of mine worked at RBC. When giving out student lines of credit there are three things if they hear they open up their check book immediately for;
Law School
Medical School
Flight School

Pete · Post by **Pete** » Thu Aug 17, 2006 5:41 pm

Funny RBC told me to phack aff. TD all the way. Great people I found. When I applied I had only 4 months at my job, 2K in my savings and no real collateral other than that. She said she would push for it, the next morning I was signing the papers. Its finishing my commercial, and leaves me with enough to pursue a FI rating after or just leave it alone. I thought they were very nice people. I would recommend TD personally.

SkyWolfe · Post by **SkyWolfe** » Thu Aug 17, 2006 7:18 pm

RBC was great! They gave me 25,000 with no cosigner!

costermonger · Post by **costermonger** » Thu Aug 17, 2006 8:37 pm

If you're going to a college program, pretty much any bank will give you a student loan to the tune of 10-15k, per year in school. TD's got a "professional" loan, but they require lots of collateral and there are many, many hoops to jump through. IMHO, student loans have a nice advantage when you consider that they generally give you 8-12 months after you finish school to begin making payments on principal.

I used CIBC. I was already dealing with them, and getting the loan approved was pretty simple. If I were you, I'd speak to a loan officer at the bank you're already using.

app flap · Post by **app flap** » Thu Aug 17, 2006 10:59 pm

i had a really good experience with rbc, got $46,000 no problem, small town branch, knew the manager personally and whatever. been pretty happy with them on the whole. scotiabank laughed at me after having an account with them since i was 13, i only have one debit card now!

klintph · Post by **klintph** » Fri Aug 18, 2006 4:58 am

Thanks guys for all the info, very informative and helpful. Im just going to start my training, I dont need flight colleges though, just PPL and time building but as Norksman noted it aint worth paying an interest on something you wont make money out of. He's got a point. But dont you guys think that PPL and time building are part of the whole equation? (PPL CPL FI MULTI etc) before your entire investments pays off?

also, I dont have much collateral to show, Im just renting an apartment, I dont have a luxurious car and I dont have a credit card just debit card. So what do you think guys are my chances of getting a loan on TD, RBC, IMHO, etc

Vector2ILS · Post by **Vector2ILS** » Fri Aug 18, 2006 6:20 am

Yeah, I agree, RBC is the way to go.

InTheGame · Post by **InTheGame** » Fri Aug 18, 2006 7:56 am

I have found government loans to be the best by far, they don't help you with the private license but they do help with the commercial and multi IFR, instructor portions. Most of the time ( not sure all provinces)you need to be out of highschool atleast 3 years before you can apply on your own and not need to put your parents down and their financial info. If you can apply on your own and make yourself appear poor as s@#$ then they give you full funding, when it comes back to repayment most people get a remission and half the loan is forgiven ( way better than any bank!!!! ) and you can repay the remainder as you can. If you do not make enough money when you finish you can go through interest relief programs and even apply for a larger remission. Payments can be amortized over 10 years instead of 4 to help you get by and actually live when you graduate.
Look into it!

buck82 · Post by **buck82** » Fri Aug 18, 2006 8:51 am

RBC, especially when it comes to paying it off as you min monthly payment is only the intrest; which could be usefull until you step into that six figure salary bracket.

ScudRunner · Post by **ScudRunner** » Fri Aug 18, 2006 10:09 am

TD, they just offered it to me when checking my account online. It was only 10K but I said WTF and clicked "yes im interested" and next thing I knew I had it. Never used it but handy to have it set just in case.

klintph · Post by **klintph** » Sat Aug 19, 2006 1:13 am

InTheGame wrote:I have found government loans to be the best by far, they don't help you with the private license but they do help with the commercial and multi IFR, instructor portions. Most of the time ( not sure all provinces)you need to be out of highschool atleast 3 years before you can apply on your own and not need to put your parents down and their financial info. If you can apply on your own and make yourself appear poor as s@#$ then they give you full funding, when it comes back to repayment most people get a remission and half the loan is forgiven ( way better than any bank!!!! ) and you can repay the remainder as you can. If you do not make enough money when you finish you can go through interest relief programs and even apply for a larger remission. Payments can be amortized over 10 years instead of 4 to help you get by and actually live when you graduate.
Look into it!

Any particular program form the government

Jeremy · Post by **Jeremy** » Sat Aug 19, 2006 1:26 pm

CIBC all the way. They gave me a deep line of credit with low interest without a cosigner or even an account with them prior to that point.

One good thing to remember is every six months go in to renegotiate your loan for less interest. If you're moving around a bit, go to a different CIBC branch to negotiate. The new branch will want your loan through them, so they'll undercut your previous line of credit interest to get your loan :}

It can be a pain with direct deposits/withdrawls because your account number changes, new cheques, etc....so you will have to set-up all those again.

I consider it a slight inconvience that has shaved 2+% interest of my line of credit.

Oh, look at that, it's been six months again :}
Good luck.

Norskman · Post by **Norskman** » Sun Aug 20, 2006 10:55 am

klintph wrote:... But dont you guys think that PPL and time building are part of the whole equation? (PPL CPL FI MULTI etc) before your entire investments pays off? ...

Yes, I do think that the PPL is part of the whole picture. I guess what I was thinking at the time was, if you just get enough cash for PPL, you will have to pay that off before you can get a LOC for your CPL and ratings unless you have some kind of wicked-good credit rating. If you didn't get enough cash for everything right up to CPL with ratings.. you could be stuck paying that off with a useless PPL in your hand, with no money for flying since all your cash is going towards your LOC.?

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