I'm very confused when it comes to these LOCs.
What is supposed to happen to them once the LOC enters repayment?
For example, throughout medical school and residency it stays at prime interest, and that continues for a 1 year grace period after the completion of residency.
Once that 1 year grace period is up, what happens? National Bank (who I am with through MD management) told me that depending on credit rating it will be either converted to line of credit at prime + 1%, 50/50 LOC/loan, or 100% loan.
RBC was just straight up telling me it would become a loan.
Is it actually supposed to be converted to a LOC at prime? Please let me know as I'm trying to negotiate and have a limited time frame to doing so. Thanks.