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[OP]
Jr. Member
Oct 23, 2014
100 posts
27 upvotes
Toronto, ON

LOC question ..

Given the GTA's obsession with clean offers, is it a terrible idea to rely on an unsecured LOC as a "short-term" backup in case financing falls through after making a clean offer? I know rates on unsecured loans are pretty bad. Problem is bank's underwriting department takes 5-7 days to confirm financing. Thoughts?
2 replies
Deal Guru
User avatar
Mar 23, 2008
12235 posts
8644 upvotes
Edmonton
What kind of backup are you hoping to have it provide? I don't see how having short term access to funds is going to help to make a clean offer.

C
Deal Fanatic
User avatar
Feb 2, 2014
8889 posts
2543 upvotes
Toronto
iqster123 wrote: Given the GTA's obsession with clean offers, is it a terrible idea to rely on an unsecured LOC as a "short-term" backup in case financing falls through after making a clean offer? I know rates on unsecured loans are pretty bad. Problem is bank's underwriting department takes 5-7 days to confirm financing. Thoughts?
I don't understand what you're asking. Do you think it will be easier and faster (or even possible) to get a unsecured loan/loc instead of a mortgage to purchase a property???
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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