Student Line of Credit
Take care of tuition, rent, textbooks and the unexpected with this affordable, flexible financing option.
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Limited-time offer
Earn a $325 cash bonus* when you open a BMO Student Line of Credit
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About the Student Line of Credit
How much you can borrow footnote 1
Apply once and you’re covered for the length of your program (up to four years). footnote 2 Borrow just what you need, when you need it. footnote dagger
- Up to $20,000 per year
- Up to a maximum of $80,000 in four years
Lower borrowing costs
Enjoy a variable low-interest rate based on BMO’s Prime Rate plus 0.5% footnote 3 while you’re in school.
Pay interest only on what you borrow, with no annual or monthly fees. Plus, you can take advantage of interest-only payments while in school and for two years after graduation and after that repayment of principal starts.
Eligibility footnote 1
- Full-time or part-time student enrolled in an eligible post-secondary school
- Enrolled in a diploma or certificate program
- Canadian citizen or Permanent Resident
- Eligible programs must be a minimum duration of at least 12 weeks
Tip: With a line of credit, you’re only charged interest on the amount you borrow. So, in your first year, if you have a $15,000 line of credit and borrow $5,000, you’re only charged interest on the $5,000.
How to apply for a Student Line of Credit
Find someone to be your co-signer (usually a parent). A co-signer agrees to take over your payments in case you can’t keep up with the payments.
Book an appointment at a BMO branch to talk with a lending expert. Come in with your co-signer, bringing the documents below.
We’ll review your situation and come up with a line of credit plan for you.
Access your money at a BMO branch or with line of credit cheques. footnote 4 If you have a BMO chequing account, use your line of credit via online or mobile banking.
Let’s do this! What do I need before I apply? What does my co-signer need?
Your government-issued photo ID- Your proof of enrolment at an eligible post-secondary school
- Co-signer’s government-issued photo ID
- Co-signer’s proof of employment such as a letter from an employer or recent paystubs
- Co-signer’s recent T4/T4A slips or RL1 if they’re a resident of Quebec, or T1 income tax return or Revenue Quebec TP1 with corresponding notice of assessment
For full details on what to bring, check out What to bring to a borrowing appointment.
Student Line of Credit F A Qs
Student loans are only offered by the federal or provincial governments. A bank can also offer you a personal loan to use for school expenses. With a loan, you pay interest on the full amount you are given.
A student line of credit from a bank gives you access to a set amount of money you can borrow as needed – and you’re only charged interest on what you borrow. For example, if you have a $15,000 line of credit and only borrow $5,000, you’re only charged interest on the $5,000.
Interest is calculated on your daily balance and charged monthly to your account.
Yes, they can – and it’s good to keep this in mind. For lines of credit, your interest rate is a variable interest rate and will change without advance notice whenever BMO's Prime Rate changes or otherwise with notice in accordance with the terms of your Student Line of Credit agreement.
You’ll need a co-signer if you’re under the age of majority in the province you live in.
We also recommend you apply with a co-signer if you don’t have:
- A stable full-time or part-time job
- A strong or established credit history
- Savings or a history of saving
- The financial resources to cover a reasonable portion of your educational expenses
If you’re applying with a co-signer, you both must attend the branch meeting and bring the necessary supporting documents.
The BMO Prime Rate – also known as the prime lending rate – is the annual rate we use to set variable interest rates for our loans, lines of credit and mortgages. The actual rate you’ll get on your loan or line of credit is based on many factors in addition to the Prime Rate. These include how much you’re borrowing, your credit history and if you’re using collateral. You can see our current Prime Rate here.
How can I confirm with BMO that I’m still in school?
If you stay in school beyond your expected graduation date, we may ask you to provide proof of continued enrolment to keep your Student Line of Credit active. Just book an appointment and bring along a supporting document that shows you’re currently enrolled in a full-time post-secondary program. Have questions? Feel free to contact us and we can help.
Can I apply for a student line of credit as an international student?
If you’re an international student, you can apply for a student line of credit if:
- You’re attending an eligible Canadian post-secondary school
- You apply with a co-signer who’s a Canadian citizen or permanent resident
- You meet all the other lending requirements
Have more questions?
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- Footnote dagger details Contingent upon the account being in good standing and the customer abiding by all applicable policies and procedures as per the product agreement
- Footnote star details Terms and conditions apply. Click here to view full offer details.
- Footnote 1 details Approval and credit limit are subject to meeting BMO's usual credit requirements. Must be a Canadian citizen or Permanent Resident enrolled in a Canadian or non-Canadian post-secondary school or university. Co-signer may be required. Subject to credit availability and verification of identity.
- Footnote 2 details Subject to the terms of your Student Line of Credit Agreement.
- Footnote 3 details While you are attending the academic program identified in connection with your Student Line of Credit Agreement (the “Agreement”), your interest rate will only change with a change to BMO's Prime Rate. After graduation, your interest rate may change in accordance with the terms of the Agreement.
- Footnote 4 details Convenient access to funds, anytime, up to your credit limit through a branch or Line of Credit cheques. Applications and the amount you can borrow are subject to meeting BMO’s usual credit criteria.