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Lines of Credit for Medical Students (Scotia is the best option)

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1 minute ago, rmorelan said:

yes people have an rarely even it has happened - that being said you have to be extremely careful about the down payment from the LOC thing - it is going to go against the normal mortgage rules for instance. 

There has to be something really special going on to go in that directly where you are maxed out. Very vulnerable situation etc. Is it that critical that you buy right now? 

not critical too buy just wanted to help my parents out with some down payment on a house they were looking to buy. they will be paying the mortgage on it. but if you don't need it for a mortgage do you think the 275 limit can be increased to 300 or 350K? 

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25 minutes ago, docK said:

not critical too buy just wanted to help my parents out with some down payment on a house they were looking to buy. they will be paying the mortgage on it. but if you don't need it for a mortgage do you think the 275 limit can be increased to 300 or 350K? 

that is where it gets dicey - I have seen them increase it at the point of graduation when income in almost there - it is almost like they are not really upping the LOC but giving another additional loan. Even then it was only about 25K more - a full 75K over max is pushing it - although we have to see what the new changes to LOCs are fully for this year (in case that amount is rising etc). Keep in mind the interest charges on a full 300K LOC would be over a 1000 a month, which depending on where you are in your training, and where you are living is a major issue. Plus that is at our current low interest rates, which are expected to rise quite a bit (ha, within the usual uncertainty of things)

The problem is the amount of 275K is already so high - medical school tuition is around 120 at most - so why would you need more than 150K extra over that? At least how the argument goes. 

 

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15 hours ago, docK said:

not critical too buy just wanted to help my parents out with some down payment on a house they were looking to buy. they will be paying the mortgage on it. but if you don't need it for a mortgage do you think the 275 limit can be increased to 300 or 350K? 

 

What's your cash-flow going to look like if you do that?  Interest rates are still at multi-generational low levels, but may not stay that way indefinitely.  What's your plan if prime goes back to a more historically typical 5%-7%?    At 5%, a full $350k LOC is going to cost $1500/month to service.   At 7%, your carrying cost will be $2000/month.  

For a sense of scale, current estimated Ontario PGY-1 net semi-monthly pay is ~$1700.  (http://www.myparo.ca/starting-residency/ )

Imagine being a PGY-1, with all of the stress that *already* entails (and it has moments when it really sucks, believe you me).  And imagine every second day, you wake up and have to say to yourself: "everything I do today, any money I make is going to go straight to my banker."

I don't know all of your circumstances, and I don't want to know them.  But what you're proposing sounds like a terrible idea to me.

 

 

 

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For those looking to get infinite momentum + infinite passport with Scotia, go to your advisor and state that other branches of Scotia are offering it. Tell them to touch base with Scotia HQ in Toronto, the Plaza branch is approving Infinite Momentum + infinite passport visa annually fees waived as long as you have a LOC.

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52 minutes ago, Coronaxtra said:

For those looking to get infinite momentum + infinite passport with Scotia, go to your advisor and state that other branches of Scotia are offering it. Tell them to touch base with Scotia HQ in Toronto, the Plaza branch is approving Infinite Momentum + infinite passport visa annually fees waived as long as you have a LOC.

So if I'm understanding this thread properly, Scotia is offering the infinite momentum and infinite passport, OR Amex gold and infinite passport? I haven't started talking to banks yet, but I want to start doing so.

What are the other banks currently offering? I don't live in a huge city like Toronto, so it's a little harder to make sure I'm getting what I'm supposed to be. I want to know what's offered in case I have troubles finding an expert in professional lines of credit/the expert I do find is a little less experienced. 

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3 hours ago, Coronaxtra said:

For those looking to get infinite momentum + infinite passport with Scotia, go to your advisor and state that other branches of Scotia are offering it. Tell them to touch base with Scotia HQ in Toronto, the Plaza branch is approving Infinite Momentum + infinite passport visa annually fees waived as long as you have a LOC.

Good to know. I met with the recommended advisor in Toronto and was told that HQ was the one who doesn't allow waiving the fees for the Momentum Infinite after a year.

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On 5/21/2013 at 4:32 PM, James@MDManagement said:

]Some of you may want to look into the student and resident line of credit offered through MD Physician Services by National Bank:

https://mdm.ca/career-stages/student/paying-for-medical-school/

Our MD Advisors can help you manage your debt wisely by developing a personalized and detailed debt management plan free of charge throughout your medical training.

James@MD

Ha - now I am curious, you are remaining with National Bank now that the sale is going to Scotia has occurred? Can you post the actual particulars of your LOC (amount, rate, repayment options etc). Of note the link you provided doesn't seem to go anywhere - perhaps because of the sale? 

I think you are understand we are particularly interested in well the particulars as it were, and have to be careful about anything tending towards advertising. 

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51 minutes ago, SunAndMoon said:

For pre-existing RBC customers: have you had issues with regards to the VIP account fees after 1 year? I was told I can only be given one year for free. 

Nope. Was offered VIP account with fees waived for 4 years right off the bat. Was told that I probably wouldn't be able to get the iPad though since I was an existing RBC customer.

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27 minutes ago, xiphoid said:

Nope. Was offered VIP account with fees waived for 4 years right off the bat. Was told that I probably wouldn't be able to get the iPad though since I was an existing RBC customer.

Thanks for the heads up! Check your pm whenever you can pls :)

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On 5/31/2018 at 3:44 PM, Organeer said:

Two hours ago, Scotiabank has just purchased MD Financial from CMA - you guys can google it. This is a huge game changer. Shortly after this occurred, I talked to Rod McFadden (see his posts on page 46 of this thread) on the phone about the implications of this and some of the potential improvements to the Scotiabank offer that is to come shortly. He's extremely knowledgeable, and I am going to do my LOC with him.

Any idea what new things Scotiabank is going to offer?

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6 hours ago, FMinterview said:

Any idea what new things Scotiabank is going to offer?

One of the things I'm interested in increased max limit. There may be more but don't quote me on that. I believe they're still hashing it out with the acquisition of MDFinancial. I was also told that concrete details will be available in 1-2 weeks so I'm going to be patient...

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16 hours ago, Coronaxtra said:

For those looking to get infinite momentum + infinite passport with Scotia, go to your advisor and state that other branches of Scotia are offering it. Tell them to touch base with Scotia HQ in Toronto, the Plaza branch is approving Infinite Momentum + infinite passport visa annually fees waived as long as you have a LOC.

Check PM please! :)

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12 hours ago, xiphoid said:

Nope. Was offered VIP account with fees waived for 4 years right off the bat. Was told that I probably wouldn't be able to get the iPad though since I was an existing RBC customer.

Is the iPad for LOC confirmed?

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PM'd as well! thanks for all your help!

22 hours ago, Coronaxtra said:

For those looking to get infinite momentum + infinite passport with Scotia, go to your advisor and state that other branches of Scotia are offering it. Tell them to touch base with Scotia HQ in Toronto, the Plaza branch is approving Infinite Momentum + infinite passport visa annually fees waived as long as you have a LOC.

 

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59 minutes ago, CanPreMed2018 said:

I just spoke to Viktoriya at the RBC branch in downtown Toronto, and she said that was a promotion that was happening last year and not this year. 

I was told by Veena also at a downtown Toronto RBC branch that the iPad promotion is this year, and the promotion was an Apple Watch last year.

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1 hour ago, CanPreMed2018 said:

I just spoke to Viktoriya at the RBC branch in downtown Toronto, and she said that was a promotion that was happening last year and not this year. 

24 minutes ago, xiphoid said:

I was told by Veena also at a downtown Toronto RBC branch that the iPad promotion is this year, and the promotion was an Apple Watch last year.

Ugh the conflicting details... damnit!

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2 hours ago, CanPreMed2018 said:

I just spoke to Viktoriya at the RBC branch in downtown Toronto, and she said that was a promotion that was happening last year and not this year. 

BS - the iPad is this year. I'm getting increasingly frustrated with reps being either ignorant or blatantly lying to customers

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17 hours ago, SunAndMoon said:

For pre-existing RBC customers: have you had issues with regards to the VIP account fees after 1 year? I was told I can only be given one year for free. 

I was also told this. I basically told them that I'm going to scotia if this is the case, and they didn't do anything about it. It seems silly for a bank to give up a lifelong customer with high earning potential just to not waive fees for VIP account for 3 extra years.... Anyways, at least they made my decision easier. 

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1 minute ago, macd said:

I was also told this. I basically told them that I'm going to scotia if this is the case, and they didn't do anything about it. It seems silly for a bank to give up a lifelong customer with high earning potential just to not waive fees for VIP account for 3 extra years.... Anyways, at least they made my decision easier. 

If anyone wants to go with RBC, feel free to message me and I'd be happy to send along the contact details of the rep I met with in downtown Toronto. She was super patient and explained everything, and I really do think she makes sure you get all the benefits you're supposed to get with your LOC (e.g. VIP banking and credit card fees waived for 4 years, iPad for new RBC customers, etc.) I also gain literally nothing from this (#NoDisclosuresNeeded) because I'm not planning on signing with RBC but if I were, I would 100% go with this rep!

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After having browsing through many banks for LOC: National Bank, BMO, RBC and Scotiabank.

I personally would go for Scotiabank, they are extremely knowledgeable and are used to work with MDs. Great services tailored to medical students & residents, with all the fees waived for everyday banking & credit cards. Their customer service is very courteous with prompt follow-up. 

I was with BMO for over 10 years, I was never treated differently as a regular customer: being charged for cheques, charged for debit card > 30 times, refused to be offered a LOC during residency, offered 6% interest rates for LOC?!! 1% cashback credit card.....

Needless to say that Scotiabank is used to work with doctors an is willing to invest us in long-term: offer us great services during medical school & residency in exchange for high-earning professionals with stable income :) Scotiabank for the win!

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11 hours ago, Organeer said:

One of the things I'm interested in increased max limit. There may be more but don't quote me on that. I believe they're still hashing it out with the acquisition of MDFinancial. I was also told that concrete details will be available in 1-2 weeks so I'm going to be patient...

Not sure but maybe Scotia is waiting for June 7 election and to see who will govern queens park in Toronto. most head quarters for the major banks are located. im curious what the updates will be hopefully they will have details soon 

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No nothing to do with the election.  It just takes time to update everything.  Have to change policies and update different divisions within the bank.  I will tell you the main change will be the limit.  I can’t tell you exact limits until it is finalized.  Trust me I am waiting impatiently just like all of you.

 

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I've just been informed by my Scotiabank advisor in Vancouver that in order to secure the LOC, I must obtain letters from CIBC and BMO confirming that I am not seeking LOC products from their institutions. Additionally, I have to close all of my existing, non-Scotiabank credit products in order to gain access to my LOC, even if those other credit products have been paid in full with no outstanding balances. The only way around this is to declare the credit, apply for exception, and have your LOC limit reduced by the credit limits for each respective card i.e. if you have a TD CC with an $8000 limit, your $275K loan limit would be limited to $267K.

This is a tad annoying as some of my rewards points with these other providers are contingent on having an active product.... I'm not willing to forfeit all of these points to open up an LOC. I think.

Can anyone confirm that this is indeed the case? I was not informed of this in my initial communications with Cindy (the BC SPSP rep). 

Aside, some more details about the RBC offer for those who are still weighing their options:

Quote

RBC offers a comprehensive and all-inclusive banking package for Medical Students:

  • Unlimited student banking account at no cost while you’re in school 
  • Premium credit card with a waiver of the annual fee for the duration of your studies (subject to approval)
  • Student Royal Credit line of up to $275,000 with a special interest rate of Prime – 0.25% (the limit is subject to approval.) 
  • Special Summer iPad offer ( until August 31st)  – FULL SIZE 9.7” Apple iPad ( $430 value) **condition applies
  • 30,000 Welcome reward points on the Platinum Avion Credit card ( up to $700 value)
     
  • We also offer full access to the approved limit on your Royal Credit Line from Day One and for when you complete your studies, we are the only financial institution in Canada to offer a two year grace period before principal and interest payments begin on your Royal Credit Line, which offers you increased flexibility in your cash-flow, especially right as you finish school. After the grace period, you can choose to apply to cover it to the Professional Line of Credit ( subject to approval base on the financial situation by then) or you can start pay back to the bank as a term loan.

The condition for the iPad is that the individual must open the account by August 31, 2018 and setup either a pre-authorized payment (PAP) OR a direct deposit. You need 2 PAP payments or 1 direct deposit by November 30, 2018 to qualify for the iPad. PAP can include things like gym membership deductions, cellphone bills - basically anything that auto-pulls from your bank account. 

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