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6 minutes ago, dooogs said:

from the talks we've had it seems like 150k is around the average for Ontario

I think that's including people who have parental support too and pay very little. Kind of checks out with medical students I used to teach telling me they had 200K+ in debt.

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If your interest rate is <3% I wouldn't bother pay it off too quick. Inflation is much higher than 3% and you could easily use the cash you have and invest it in something that yields much more than 3%.  If you want an example, you can borrow at 3% from CIBC and buy their stock which pays dividend of >5% lol, and bank stocks in Canada are as sure thing as death as taxes*

edit: if you actually believe the inflation figure of CPI (which the government tries very hard to make "beautiful" and "reassuring"), go look at change of M2 in Canada and you'll get an idea the real inflation rate.

 

Now for the budding lawyers:

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7 hours ago, ellorie said:

Finished with about 140k.  Paid off about 40k during residency and now working on the rest in first year of practice.  I project it will take me about 3-4 years to get rid of it.

I think on attending salary you should be able to pay off the remaining $100k in 1.5 years max.

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16 hours ago, blah1234 said:

I think that's including people who have parental support too and pay very little. Kind of checks out with medical students I used to teach telling me they had 200K+ in debt.

Im at Western so rent is cheaper here. You end up saving a bit if you room with others, live in a cheaper city

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2 hours ago, dooogs said:

Im at Western so rent is cheaper here. You end up saving a bit if you room with others, live in a cheaper city

Yea, Western students have it pretty good since it's a better housing market. I remember UofT students having substantial debt loads, especially if they lived by themselves downtown.

I do think the premium associated with paying for more convenient location or solo housing during clerkship/residency is worth it. Those years can be stressful enough that small optimizations in lifestyle can make a huge difference for your mental health.

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5 hours ago, blah1234 said:

Yea, Western students have it pretty good since it's a better housing market. I remember UofT students having substantial debt loads, especially if they lived by themselves downtown.

I do think the premium associated with paying for more convenient location or solo housing during clerkship/residency is worth it. Those years can be stressful enough that small optimizations in lifestyle can make a huge difference for your mental health.

Yes, definitely! I wouldnt not recommend cheaping out on accommodation

It's very stressful though seeing the debt accumulate. 

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I finished medical school with about 200k of debt. Probably like you, I did not have much parental income support (though they helped in a lot of other ways).I was worried back then about the number, but was able to save in residency and paid it down 70k! Tuition credits helped a lot as I basically did not pay taxes until PGY3.

Interest rates being slashed also helped us to be honest... I remember in PGY1-2 the Bank of Canada was raising them but ever since coronavirus hit, I think our line of credits are essentially the cheapest money can be. It's a good time to have a loan. 

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10 hours ago, Divine Comedy said:

Fortunate and grateful to be debt-free after completing college and medical school. My school in the US was exceedingly generous with scholarships and financial aid.

That's really impressive. Probably the first case (in my limited student sample set) where I've heard that someone is graduating debt free from scholarships and financial aid. You're easily leaps and bounds ahead of your peers.

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13 hours ago, Divine Comedy said:

Fortunate and grateful to be debt-free after completing college and medical school. My school in the US was exceedingly generous with scholarships and financial aid.

Wow, very impressive! Congrats :)

Unfortunately, I do not have any parental support and scholarships/financial aid are not sufficient so I will most like finish dental school with about 300k of debt (I already had a bit before starting dental school, but with $50,000/year tuition, it adds up quickly).

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I have about 200k in debt right now. I'm honestly very scared about the future. I don't even live luxuriously, the tuition, housing, food, car, and all the other random stuff really adds up. 

My parents are also in debt. It sucks.

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On 1/30/2021 at 9:20 AM, ellorie said:

As a psychiatrist, not so much. At least not as a single income household in Toronto.  Income disparity sucks like that. 

Don't psychiatrists make ~250k with options to make even more (I'm going off the CMA profile)? That'd be an after-tax income of about 150k. You could live frugally for a year ($4000/month) and put ~100k towards the debt, no? Just asking because psych pay is such an enigma.

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2 hours ago, gogogo said:

Don't psychiatrists make ~250k with options to make even more (I'm going off the CMA profile)? That'd be an after-tax income of about 150k. You could live frugally for a year ($4000/month) and put ~100k towards the debt, no? Just asking because psych pay is such an enigma.

I am in TO and close to my work. The rent on my apartment is 3K alone (plus utilities - and that was a not a super fancy one). My CMPA malpractise insurance is 700 a month, disability insurance is 4K a year so over 300 a month, then there are royal college fees, oma fees..... I don't but most people have a car with fixed monthly costs...... I suppose you have to eat at some point :)

I fully support the live frugally point and you can pay it off quickly if you want to but even with high incomes and a focused plan the average debit can take a bit to pay off. It is very sensitive too relatively small pay differences (with high fixed costs the difference between 200K and 250K if you save the difference is striking on your relative saving rate). A lot of new staff have reached the point where there is more than just themselves to worry about as well which can make things more complex. 

Plus you don't always immediately earn the max amount - ramping up practises takes time.  

 

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1 hour ago, rmorelan said:

I am in TO and close to my work. The rent on my apartment is 3K alone (plus utilities - and that was a not a super fancy one). My CMPA malpractise insurance is 700 a month, disability insurance is 4K a year so over 300 a month, then there are royal college fees, oma fees..... I don't but most people have a car with fixed monthly costs...... I suppose you have to eat at some point :)

I fully support the live frugally point and you can pay it off quickly if you want to but even with high incomes and a focused plan the average debit can take a bit to pay off. It is very sensitive too relatively small pay differences (with high fixed costs the difference between 200K and 250K if you save the difference is striking on your relative saving rate). A lot of new staff have reached the point where there is more than just themselves to worry about as well which can make things more complex. 

Plus you don't always immediately earn the max amount - ramping up practises takes time.  

 

Did the pandemic reduce rent costs in Toronto at all? 

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3 hours ago, gogogo said:

Don't psychiatrists make ~250k with options to make even more (I'm going off the CMA profile)? That'd be an after-tax income of about 150k. You could live frugally for a year ($4000/month) and put ~100k towards the debt, no? Just asking because psych pay is such an enigma.

I’m making less than that - if you’re outpatient psych doing psychotherapy and not much call you’re probably going to make less. However the first 6 months of practice were a ramp up - I expect to hit about 180-200k in my second year if I work hard. However, Toronto rent is expensive still and I’m also trying to start my RRSP so there’s that. 

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