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  • Apr 20th, 2021 4:39 pm
[OP]
Newbie
Apr 27, 2015
53 posts
35 upvotes
Toronto, ON

Student Loans

Is it financially prudent to delay paying off my student loans?

The federal government just announced no interest for 2 years. I am planning to buy a house soon and my mortgage broker told me student loans have little impact on approval (is that true?). Therefore, I was thinking of putting the extra money towards a bigger down payment.

$18000 in student loans
7 replies
Deal Guru
User avatar
Jan 9, 2011
14245 posts
18725 upvotes
Vancouver
bonelessbrandon wrote: Is it financially prudent to delay paying off my student loans?

The federal government just announced no interest for 2 years. I am planning to buy a house soon and my mortgage broker told me student loans have little impact on approval (is that true?). Therefore, I was thinking of putting the extra money towards a bigger down payment.

$18000 in student loans
No interest for 2 years? Ya take advantage of that. If only I could have been so lucky. In 2000 I had $30k in student loans and was paying 9.5%.
Sr. Member
Dec 24, 2007
849 posts
139 upvotes
GTA
I heard banks will count 1% of your student loan as your monthly debt that goes to the calculation of TDS.
Sr. Member
User avatar
Dec 28, 2007
538 posts
216 upvotes
Ottawa
It's on the federal portion only, I am still being charged ~3.5 % for the provincial portion of my loan.
Deal Addict
Sep 2, 2009
2282 posts
2306 upvotes
Ottawa
You don't mention: do you have any other debts other than students loans? Have cash available for an emergency?
Sr. Member
Dec 24, 2007
849 posts
139 upvotes
GTA
cash_717 wrote: It's on the federal portion only, I am still being charged ~3.5 % for the provincial portion of my loan.
I just called in today and ask them if I can apply payment to provincial part only, and the answer is no Face With Tears Of Joy
Deal Addict
User avatar
Aug 13, 2012
3194 posts
972 upvotes
Toronto
When the pandemic started and they put the payments on hold, I just invested a little money and made 2.5k in return. It was pretty nice but risky lol
¯\_(・_・)_/¯
Deal Addict
Jun 12, 2008
1406 posts
915 upvotes
Ripley
Is interest accruing but you don't have to make payments? Or is interest stopped for 2 years? Those are 2 different things.

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