• Last Updated:
  • Apr 20th, 2021 4:39 pm
[OP]
Newbie
Apr 27, 2015
50 posts
32 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
11597 posts
14379 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
790 posts
93 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
521 posts
196 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
1718 posts
1481 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
790 posts
93 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
3105 posts
879 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
1223 posts
686 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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