Line Of Credit In Vancouver

[AAAmeds]

kind of although I am not sure I am explaining it well

 

In medical school and for many residency you are paying the interest with the LOC in either case (and LOC is not a government loan - it is a regular loan. You pay interest on the money you borrow immediately) That interest is added to the principal of the loan - and then becomes the loans new increased principal amount meaning next month you owe more interest (your interest on interest happens for all people using the LOC).

 

If the bank said you have to pay principal payments (which means they want you to move to a point where you are paying things off) as a medical student it would be pointless. In a month they would say you owe 1000 say in principal, and 500 in interest. Where would you get the money from? Your only option is the LOC itself which you have full access to - so you take 1500 dollars out of the LOC, and pay both the interest and the principal off the loan. Your new amount owed would be (old value) + 1500 (which you withdrew to pay things - the interest and the principal) - 1000 (the principal payment). With no principal payment you still owe the interest which would be in the end (old loan amount) + 500 (interest). Those two totals are exactly the same amount. As long as you are only using the LOC to pay things it doesn't matter.

Oh I see! So the only advantage of the banks asking you to pay after residency is if you can manage to use your own income (and NOT the LOC) to pay the principal payment. Correct?

 

On another note, does any one know when we can start applying for government (federal and BC) loans and bursaries and scholarships?

[rmorelan]

Oh I see! So the only advantage of the banks asking you to pay after residency is if you can manage to use your own income (and NOT the LOC) to pay the principal payment. Correct?

 

On another note, does any one know when we can start applying for government (federal and BC) loans and bursaries and scholarships?

 

Exactly - you don't want principal payments in the middle because at many banks the LOC then converts from the free wheeling withdraw whatever you want whenever into something else - designed to be paid off and potentially vanish in time. At some banks it wouldn't be uncommon to be left with an LOC with a much lower limit and perhaps tied to an asset even for a doctor in the end. If you are smart about it you won't care as it will be the last time you have to be in debit ever except perhaps for a mortgage. 

[retiredUG]

Hey Everyone! 

I have been doing some shopping around and this is what I have come up with so far:

Scotia Bank

• 275k LOC all funds up front @ Prime -0.25% 

• 2 accounts (chequing/savings) no monthly fees, unlimited transactions.

• $5000 Over draft protection on your chequing account 

• 2 pre approved credit cards w/10k limit on travel rewards for Visa Gold/Gold Amex (annual fees on both waived)

• No payments required on LOC during your 4 year program Plus Residency with additional 1 year grace free period after graduation.

• You keep your LOC until you want to close it, it stays at the same rate PRIME -0.25% at least until you finish your program/residency. Highest the rate will go is back to PRIME

 

RBC

 

• Up to $275,000 line of credit, with prime-0.25% for Med school and residency, plus 1 year grace period

• Chance to convert to professional line of credit after residency is done

• 1 year annual fee waiver for a Platinum Avion Visa, starting at 5,000 limit

•  Free no limit account for students (with free unlimited e transfers)

 

Also, aside from this, they have experts who may help you beyond schooling and residency:

 

• Mortgage program for medical/dental associates, where you can get financing for a house right after 4 years of med school even while in residency, we use projected income instead of actual residency income

• Commercial Banking, in the case you want to get financing for starting own clinic, with competitive interest rates

• Portfolio Management

 

** RBC is updating their offer in early June. This will likely include them waiving all credit card fees for the first 4 years. They are not sure as of now if they will be offering all funds up front like Scotia Bank. This information should be available shortly. 

 

TD

 

• 275k line of credit. The rate is prime - 0.25%. This rate is fixed for the entire period (including repayment after residency). Interest only payments on the LOC until 1 year after residency. 

• All Funds are not available upfront. These are the respective maximum amounts that can be used from Year 1-4: 80k, 80k, 60k, the remaining amount can be used in the final year.

• All fees waived for a personal all-inclusive checking account (unlimited transactions, security deposit box). Fees are waived until graduation. 

• Platinum Visa Travel Card (either Aeroplan rewards or Visa Travel Rewards). $6000 limit. All fees waived until graduation. 

• Option to buy life insurance and critical illness insurance. The rate they currently offer is $0.32 for every $1000 used in the line of credit. For example, if $100,000 is used the balance on the LOC, the insurance payments will be $32 per month. 

• Wireless speaker 

I also inquired at BMO; however, their package is quite uncompetitive. They only offer unto $250,000 and don't waive credit card fees. Based on the responses that I have received, it seems like Scotia Bank has the most flexible package, so I will likely go with them. I will wait a couple of weeks until RBC releases their new package to decide. If anyone wants the contacts to any of these banks, let me know! 

[46dr]

23 hours ago, kol26 said:

 

 

Hey!

 

Sorry to hear that TD wasn't able to accommodate you better. I honestly think it was the advisor who wasn't well educated in the LOC process for medical students, because all these features aren't dependent on the student, they should be guaranteed for you. Even on TD's homepage it explicitly states the benefits they have, which include the All-Inclusive account rebated for 4 years (usually 30$ a month if you can't keep a 5000 balance) which would then include any visa, with its fee being waived, and every other bonus that comes with the All-Inclusive account. 

 

Regardless, if scotia is a better option for you, then go with them! As long as you're happy and have trust with your advisor, thats all that really matters at the end of the day. 

The advisor I spoke to must have been clueless then. I'll give yours a shot. 

 

Thanks!

[rmorelan]

6 hours ago, retiredUG said:

Hey Everyone! 

I have been doing some shopping around and this is what I have come up with so far:

Scotia Bank

• 275k LOC all funds up front @ Prime -0.25% 

• 2 accounts (chequing/savings) no monthly fees, unlimited transactions.

• $5000 Over draft protection on your chequing account 

• 2 pre approved credit cards w/10k limit on travel rewards for Visa Gold/Gold Amex (annual fees on both waived)

• No payments required on LOC during your 4 year program Plus Residency with additional 1 year grace free period after graduation.

• You keep your LOC until you want to close it, it stays at the same rate PRIME -0.25% at least until you finish your program/residency. Highest the rate will go is back to PRIME

 

RBC

 

• Up to $275,000 line of credit, with prime-0.25% for Med school and residency, plus 1 year grace period

• Chance to convert to professional line of credit after residency is done

• 1 year annual fee waiver for a Platinum Avion Visa, starting at 5,000 limit

•  Free no limit account for students (with free unlimited e transfers)

 

Also, aside from this, they have experts who may help you beyond schooling and residency:

 

• Mortgage program for medical/dental associates, where you can get financing for a house right after 4 years of med school even while in residency, we use projected income instead of actual residency income

• Commercial Banking, in the case you want to get financing for starting own clinic, with competitive interest rates

• Portfolio Management

 

** RBC is updating their offer in early June. This will likely include them waiving all credit card fees for the first 4 years. They are not sure as of now if they will be offering all funds up front like Scotia Bank. This information should be available shortly. 

 

TD

 

• 275k line of credit. The rate is prime - 0.25%. This rate is fixed for the entire period (including repayment after residency). Interest only payments on the LOC until 1 year after residency. 

• All Funds are not available upfront. These are the respective maximum amounts that can be used from Year 1-4: 80k, 80k, 60k, the remaining amount can be used in the final year.

• All fees waived for a personal all-inclusive checking account (unlimited transactions, security deposit box). Fees are waived until graduation. 

• Platinum Visa Travel Card (either Aeroplan rewards or Visa Travel Rewards). $6000 limit. All fees waived until graduation. 

• Option to buy life insurance and critical illness insurance. The rate they currently offer is $0.32 for every $1000 used in the line of credit. For example, if $100,000 is used the balance on the LOC, the insurance payments will be $32 per month. 

• Wireless speaker 

I also inquired at BMO; however, their package is quite uncompetitive. They only offer unto $250,000 and don't waive credit card fees. Based on the responses that I have received, it seems like Scotia Bank has the most flexible package, so I will likely go with them. I will wait a couple of weeks until RBC releases their new package to decide. If anyone wants the contacts to any of these banks, let me know! 

Nice summary

Scotia just to add has all the same experts for schooling and beyond that do everything you listed there. They probably just haven't advertised it as much upfront. I know this simply because I am in fact using those services. 

Ha, just reinforces the point that RBC and scotia are at war with each over us. 

competition. It is a good thing. 

 

 

[MedZZZ]

Hi everyone, 

For anyone wondering about RBC Line of Credit, I just talked to an advisor today and here are the updates: 

1.)    Up to $275,000 line of credit, with prime-0.25% for Med school and residency, plus TWO years grace period

2.)   After grace period, it turns into an amortized loan, still guaranteed at prime-0.25% until paid down to $0

3.)    Another option is to convert to professional line of credit after residency is done, renegotiated

4.)   Free VIP Account for 4 years, VIP account features include

·         Unlimited Transactions

·         Free unlimited cheque orders

·         Free overdraft protection

·         12 free Money Orders for the year

·         $45 discount on any safety deposit box

·         Waive of cross border fees on our end, if you need to use your debit card in another country (usually charged  at $3 in the USA, and $5 in other countries)

·         2 other fee-based chequing accounts for free

·         Unlimited E-transfers

5.)   4 year annual fee waiver for Platinum Avion visa in line with VIP Account, starting at $5,000 limit

 

Also, aside from this, we have experts who may help you beyond schooling and residency:

1.)    Mortgage program for medical/dental associates, where you can get financing for a house right after 4 years of med school even while in residency, we use projected income instead of actual residency income

2.)    Commercial Banking, in the case you want to get financing for starting own clinic, with competitive interest rates

3.)    Portfolio Management

 I am still thinking between Scotia and RBC but I though I would just pass on this info  

[retiredUG]

15 hours ago, UBC_GRAD said:

Hi everyone, 

For anyone wondering about RBC Line of Credit, I just talked to an advisor today and here are the updates: 

1.)    Up to $275,000 line of credit, with prime-0.25% for Med school and residency, plus TWO years grace period

2.)   After grace period, it turns into an amortized loan, still guaranteed at prime-0.25% until paid down to $0

3.)    Another option is to convert to professional line of credit after residency is done, renegotiated

4.)   Free VIP Account for 4 years, VIP account features include

·         Unlimited Transactions

·         Free unlimited cheque orders

·         Free overdraft protection

·         12 free Money Orders for the year

·         $45 discount on any safety deposit box

·         Waive of cross border fees on our end, if you need to use your debit card in another country (usually charged  at $3 in the USA, and $5 in other countries)

·         2 other fee-based chequing accounts for free

·         Unlimited E-transfers

5.)   4 year annual fee waiver for Platinum Avion visa in line with VIP Account, starting at $5,000 limit

 

Also, aside from this, we have experts who may help you beyond schooling and residency:

1.)    Mortgage program for medical/dental associates, where you can get financing for a house right after 4 years of med school even while in residency, we use projected income instead of actual residency income

2.)    Commercial Banking, in the case you want to get financing for starting own clinic, with competitive interest rates

3.)    Portfolio Management

 I am still thinking between Scotia and RBC but I though I would just pass on this info  

Just to add to this: 

1) The full $275,000 is available up front. 

2) You can choose between the 4 year annual fee waiver for the Platinum Avion Visa or the Apple Watch. 

[madethistoaskquestions]

19 hours ago, UBC_GRAD said:

Hi everyone, 

For anyone wondering about RBC Line of Credit, I just talked to an advisor today and here are the updates: 

1.)    Up to $275,000 line of credit, with prime-0.25% for Med school and residency, plus TWO years grace period

2.)   After grace period, it turns into an amortized loan, still guaranteed at prime-0.25% until paid down to $0

3.)    Another option is to convert to professional line of credit after residency is done, renegotiated

4.)   Free VIP Account for 4 years, VIP account features include

·         Unlimited Transactions

·         Free unlimited cheque orders

·         Free overdraft protection

·         12 free Money Orders for the year

·         $45 discount on any safety deposit box

·         Waive of cross border fees on our end, if you need to use your debit card in another country (usually charged  at $3 in the USA, and $5 in other countries)

·         2 other fee-based chequing accounts for free

·         Unlimited E-transfers

5.)   4 year annual fee waiver for Platinum Avion visa in line with VIP Account, starting at $5,000 limit

 

Also, aside from this, we have experts who may help you beyond schooling and residency:

1.)    Mortgage program for medical/dental associates, where you can get financing for a house right after 4 years of med school even while in residency, we use projected income instead of actual residency income

2.)    Commercial Banking, in the case you want to get financing for starting own clinic, with competitive interest rates

3.)    Portfolio Management

 I am still thinking between Scotia and RBC but I though I would just pass on this info  

Good to know this. Can't seem to find any information online to confirm though. Do you know if this is public knowledge yet? Or do only special advisors know? Thanks!

[MedZZZ]

4 hours ago, madethistoaskquestions said:

Good to know this. Can't seem to find any information online to confirm though. Do you know if this is public knowledge yet? Or do only special advisors know? Thanks!

I just talked to the specialist advisor and she told me this information has just been approved on June 5th; therefore, it's not reflected on the website yet. I can give you the contact info of the advisor if you are interested. Just PM me

[thank4]

Talked to an RBC advisor today and he confirmed all the perks but could not confirm the Apple Watch is available. Is there a specialist that I can contact? 

[retiredUG]

29 minutes ago, thank4 said:

Talked to an RBC advisor today and he confirmed all the perks but could not confirm the Apple Watch is available. Is there a specialist that I can contact? 

Here is the advisor that I contacted: 

Angeline Maramo | Mutual Funds Representative | Royal Mutual Funds Inc. | T 604-221-5736 | F 604-221-5729 | E angeline.maramo@rbc.com | 

[MedZZZ]

Does anyone know if Scotia requires the monthly interest fee payment? 

 

[rmorelan]

17 minutes ago, UBC_GRAD said:

Does anyone know if Scotia requires the monthly interest fee payment? 

 

well they all do but it is added to the LOC. 

[MedZZZ]

58 minutes ago, rmorelan said:

well they all do but it is added to the LOC. 

It seems like RBC requires the monthly interest payment, but for Scotia the interest is just added to the LOC so every month you owe more money but you don't have to pay the interest monthly. I am not sure if I'm right tho. It would be great if someone could confirm? Also, is there any advantage to one way compared to the other really? 

[rmorelan]

Just now, UBC_GRAD said:

It seems like RBC requires the monthly interest payment, but for Scotia the interest is just added to the LOC so every month you owe more money but you don't have to pay the interest monthly. I am not sure if I'm right tho. It would be great if someone could confirm? Also, is there any advantage to one way compared to the other really? 

some of this is just wording (I have had LOCs at both banks ) - I mean you are still paying the interest each month, it is just HOW the interest is paid each month. 

when I was at RBC I had to transfer the money out of the LOC each month into my chequing account, from which the interest was taken. At Scotia it just goes directly on the LOC. 

[leviathan]

Wow, prime -0.25% is now the standard offer? Going to demand this rate from my bank ASAP.  You guys just saved me a few hundred bucks a year, thanks! 

[rmorelan]

9 minutes ago, leviathan said:

Wow, prime -0.25% is now the standard offer? Going to demand this rate from my bank ASAP.  You guys just saved me a few hundred bucks a year, thanks! 

ha - yeah get it while it is hot and before they change their minds. 

Looks like the US just bumped rates up yet again. 

[leviathan]

I'll be heading in ASAP! 

[ThatCanadianGuy]

Question for you guys! Say I max the $275K loan out and still am in med school, would the interest payments be 5ish thousand every month? 

[rmorelan]

18 minutes ago, ThatCanadianGuy said:

Question for you guys! Say I max the $275K loan out and still am in med school, would the interest payments be 5ish thousand every month? 

first - gah! ha don't do that 

and no, not at all. As a rough calculation it would be at prime -0.25 something like 600 a month. 

 

[ThatCanadianGuy]

6 minutes ago, rmorelan said:

first - gah! ha don't do that 

and no, not at all. As a rough calculation it would be at prime -0.25 something like 600 a month. 

 

Haha - I'm thinking of applying to American med schools. Isn't prime 2.7%?

So my monthly interest would be 275000*0.0245? What am I doing wrong haha? I just talked to a CIBC lady today and that's what she told me.. but I don't think she knew what she was talking about..

[rmorelan]

Just now, ThatCanadianGuy said:

Haha - I'm thinking of applying to American med schools. Isn't prime 2.7%?

So my monthly interest would be 275000*0.0245? What am I doing wrong haha? I just talked to a CIBC lady today and that's what she told me.. but I don't think she knew what she was talking about..

err that is the per YEAR rough calculation (as it ignores the affects of the compounding from the monthly charges so slightly off). 

as a solid estimate divide that by 12 for the by the month number. 

for us in Canada right now it is prime -0.25, which is 2.45% at most banks. Prime is set by each bank for themselves, but competition keeps is basically the same. Going to the US you may have a higher interest rate to pay depending on various factors. 

What is with all the crappy advisor math lately

[ThatCanadianGuy]

Well that makes my day way better! I was like.. if you can afford 6k a month for interest you can probably afford to just pay for med school straight up. I should probably send that adviser an email and prevent her from crushing someone else's med school dream haha! 

 

Thanks for the help! 

[Vendar]

On 6/6/2017 at 2:00 PM, retiredUG said:

Just to add to this: 

1) The full $275,000 is available up front. 

2) You can choose between the 4 year annual fee waiver for the Platinum Avion Visa or the Apple Watch. 

Do anyone know a RBC that offers this deal? If you could PM me, that would be great! 

[Synth1]

Can anyone recommend a BC-based advisor with RBC that is experienced with LOCs for medical students?