Guest gonzo23 Posted June 14, 2004 Report Share Posted June 14, 2004 Hi guys. Been doing a bit of researching and it seems that most people are heading for RBC rather than MD Management for an LOC. Is there something I'm missing? RBC gave me a quote of a cap of $125K (but others have said it is $150K). MDM gives you a cap each year (which could be a good thing to keep on budget). MDM allows you to use your current bank account which is a plus. MDM is affiliated with the CMA (wouldn't that be good? and plus getting financial counselling from someone who deals ONLY with physicians?). I'm just wondering why many are going with RBC over MDM? Is there something big I'm missing that I should be asking for Otherwise the interest is prime... the payback is 12 months after residency... which makes everything else basically equal between the two plans. Thoughts? Cheers. Link to comment Share on other sites More sharing options...
Guest physiology Posted June 14, 2004 Report Share Posted June 14, 2004 I picked RBC because in Van, there aren't many National Banks of Canada and way fewer ATMs. RBC also gives you a chance at this $3000 scholarship, a student price card, a free bank account, and stuff like 1% off the standard car loan rate. I don't think you can really win or lose if you pick RBC over MD Management, or the other way around. I should go and see MD Management as well, so I can do some comparison shopping. Good luck! Link to comment Share on other sites More sharing options...
Guest gonzo23 Posted June 14, 2004 Report Share Posted June 14, 2004 Hey Physiology. But from what I understand you don't need to access a National Bank Branch to get your funds. The lady at MDM told me that the line of credit is through the National Bank but you give them a void cheque and you access the funds through your current bank account... so you just need to decide whether the bank you are with is convenient enough. That's what I understand. Cheers. Link to comment Share on other sites More sharing options...
Guest lex Posted June 15, 2004 Report Share Posted June 15, 2004 Just a note about RBC: anyone can apply for the scholarship and generally car loans from banks are fairly pricy to start off with. It'd be hard to beat prime for a car loan so the best loan would be the LOC itself. Overall, RBC and MD Management are fairly comparible. The advantages I found for each were: RBC 1) MDM's bank account costs $2.75/month, RBC's is free - although this might change 2) MDM's life insurance is a bit more expensive but many opt to go to a third party anyways 3) You can walk into the bank with RBC 4) You get a student price card. But you can probably pick this up during the first week on campus at UBC MDM/BoC 1) With MDM, you can consolidate your LOC with the advice from your financial advisor. Saves you one less trip to the bank per semester if that's important to you 2) MDM gives you $18.76 to invest with when you open an account with them. But keep in mind that you don't have to have an LOC with them to set up an account 3) MDM is non-profit and set up by the CMA. So, it's a little easier to assume that they'd have your best interests in mind. Not to say at all that a regular bank wouldn't; some people just might find more peace-of-mind going with a non-profit 4) Royal Bank gives $150,000 up front right away - this is probably not that helpful to most students as busting the $30,000 limit is dangerous debtwise unless one has out-of-the-ordinary circumstances Please add on to this if you can think of anything else. Link to comment Share on other sites More sharing options...
Guest Ollie Posted June 15, 2004 Report Share Posted June 15, 2004 I'm currently debating between RBC and MDM, although I don't have all the MDM details yet cause I still have to go talk to someone about it. For me I have to change banks anyways cause I'm currently with a local credit union, so that's not going to work so well when I move. It's a bit easier to have everything through RBC. Although, I have always been with a credit union cause I have this inherent distrust of the big banks, and that's kind of pulling me to MDM. I'm also going to look into Scotiabank cause they have some deal with UofT that I'm not really sure of the details yet. Oh, decisions, decisions... Link to comment Share on other sites More sharing options...
Guest DonaldKaufman Posted June 15, 2004 Report Share Posted June 15, 2004 I haven't talked to anyone yet either, but MDM and RBC definitely sound like the best deals. Does anyone know if the MDM interest rate stays at prime after residency? I remember reading in another thread that the RBC rate will 'probably' stay at prime, although this wasn't guaranteed in writing anywhere. To me, the facts that MDM is not for profit, is affiliated with the CMA, and gives that free financial advice make me more likely to choose this bank. It might be possible to get MDM to waive their banking fees, who knows. I just find the whole corporate push of the other banks to be a bit much. For example, the box that you can check off on that RBC scholarship application that says "I would like to be sent further information about scholarships and other ways in which RBC assist in meeting my financial needs", i.e. get sent junk mail for credit card and mortgage applications. Not everyone loathes that kind of thing as much as me though, so I can see the big appeal of the RBC deal. Do you think anyone that isn't set up with RBC will win one of the scholarships? Link to comment Share on other sites More sharing options...
Guest gonzo23 Posted June 15, 2004 Report Share Posted June 15, 2004 I'm so confused now. I just talked to another lady at MDM (Kari Woo). She told me that MDM differs from all other bank LOCs in that you don't have to pay interest until residency. But then I asked her to clarify about whether interest was being incurred. She said that if you take out $10K/yr. for 4 years then after you are finished you would have a $40K debt. and would then begin to be charged interest on that once you begin residency. That makes it sound like an interest-free loan until residency (which is WAY too good to be true). I was under the impression that the interest you were charged each month on your balance would be rolled into your credit line (as can be done with RBC where it is compounded). Can someone clarify where I'm going wrong here. Cheers. Link to comment Share on other sites More sharing options...
Guest Ollie Posted June 15, 2004 Report Share Posted June 15, 2004 OMG gonzo, I talked to Kari today and she told me the exact same thing. I was actually going to post the same question you just did! I am meeting with her on Monday, so I will make sure I clarify this with her. Link to comment Share on other sites More sharing options...
Guest UWOMED2005 Posted June 16, 2004 Report Share Posted June 16, 2004 That's gotta be a mistake. I'm with National Bank (MD Management) and I'm sure they charge me interest on my LOC. I'd still argue it's better overall than RBC, or at least it was last time I compared the two packages. Link to comment Share on other sites More sharing options...
Guest kosmo14 Posted June 16, 2004 Report Share Posted June 16, 2004 UWOMED2005 has it right. I have the MDM national bank LOC and I definately pay interest every month. I pay interest by it being taken from my LOC which effectively reduces my available credit each year. IE/ for example if I am paying 200/mos interest I only have 27600 left on my line of credit in a year. I was told that I don't pay interest when I signed up, but after much time on the phone, and many arguements with both MDM and National in the end I do pay interest. One thing to note is that National Bank has been by far the best bank I have ever dealt with (I would actually say the problem with the monthly interest payments is due to MDM not knowing thier stuff and nothing to do with National Bank, as it appears MDM has no clue what is going on in this area). I have actually gotten a call a few times from National to see if all of my financial needs are being met, and if everything with my LOC is working well something you will not likely get from RBC who seem to hook you then treat you like another number. Also with national you never pay any interac direct payment fees, and the only fees you pay are the ones charged to you by other banks ATMs. Link to comment Share on other sites More sharing options...
Guest physiology Posted June 16, 2004 Report Share Posted June 16, 2004 Hello Kosmo, Isn't that a big problem then? National Bank of Canada doesn't have very many ATMs. RBC does charge for interac use, but they have more ATMs by far. Anyway, I think the customer service is pretty good on both sides. Link to comment Share on other sites More sharing options...
Guest kosmo14 Posted June 16, 2004 Report Share Posted June 16, 2004 I don't find it a huge problem as I really don't carry around cash that often. We have one National Bank ATM here in town and I may have to use it once a month. It depends on how you bank. As cash fades from existance and Interac rises it doesn't appear to be a huge issue. Link to comment Share on other sites More sharing options...
Guest physiology Posted June 16, 2004 Report Share Posted June 16, 2004 Hello, RBC gives you free 25 transactions, so I lied about the interac charges. I just checked with the RBC specialist. They only charge you when you use another bank's ATM. Link to comment Share on other sites More sharing options...
Guest lex Posted June 16, 2004 Report Share Posted June 16, 2004 Also, with the Bank of Canada, you get more cheques. RBC charges above the 2 you get per month (I think $2 each). Link to comment Share on other sites More sharing options...
Guest gonzo23 Posted June 16, 2004 Report Share Posted June 16, 2004 Hi guys, As for the ATM issue... well what I was going to do is just transfer funds online (or by cheque) from my LOC into my regular TD account. That way I can access the funds conveniently when I need them and just add more into my regular account when needbe. I think with an LOC from National Bank you have access to internet banking if I'm not mistaken which makes transfer between accounts quite simple. Although I'm getting sold on MDM the whole "misinformation" thing is kinda eating at me. To advertise a "no-interest" LOC while in med. school is a big thing to screw up. Link to comment Share on other sites More sharing options...
Guest 15Sacha Posted June 16, 2004 Report Share Posted June 16, 2004 Is it a bad idea to have access to two LOC's, one from RBC and one from MD management? I am curious how much money is really required on average by medical students who live in an apartment or residence during the school year. Any input would be appreciated. Sach Link to comment Share on other sites More sharing options...
Guest ubcpharmer Posted June 16, 2004 Report Share Posted June 16, 2004 that would be nice if it could be done but most banks would not give you a line of cedit if you already had one unless you had some sort of property. Link to comment Share on other sites More sharing options...
Guest lex Posted June 17, 2004 Report Share Posted June 17, 2004 Unless you had security, you wouldn't get any more money even if could have two. The banks would count the respective other LOC against the maximum of theirs. Only guaranteed loans are excluded. So, if you had 100,000 from bank A, bank B, with a max of 150,000, would only give you 50,000. Link to comment Share on other sites More sharing options...
Guest Ian Wong Posted June 19, 2004 Report Share Posted June 19, 2004 Is it a bad idea to have access to two LOC's, one from RBC and one from MD management?Just wanted to echo this. You can't have two med student LOC's going from two different banks simultaneously. It makes you that much bigger of a credit risk. All of this debt information is stored on your credit report (which banks have access to, and will check prior to issuing you an LOC), so if you already have one LOC, and apply for a second, you can expect that second LOC to be denied. Ian Link to comment Share on other sites More sharing options...
Guest Ollie Posted June 21, 2004 Report Share Posted June 21, 2004 Hey, So I met with MD management today regarding their LOC. I must say I was very impressed. She spent almost 1.5 hours with me going over everything. I think that I am going to go with them over RBC. The actual LOC isn’t that much different, but I feel so much more comfortable with MDM than RBC. I don’t feel like I am being sold something, and I feel like they have my best interests in mind. As far as the interest payment goes, you don’t have to pay any interest while in school. The interest will accrue, and then will be added on to what you owe after graduation. During residency, you only have to make interest payments, but they do encourage you to pay more if you can. Also, for life insurance, it’s 20 cents/$1000 (RBC is 12 cents) but it’s only on the interest, not the principle. She wasn’t sure how this changed after graduation and was going to let me know. I am going to confirm all these details with National Bank before I sign anything (esp b/c kosmo14 said above that s/he does make interest payments). Link to comment Share on other sites More sharing options...
Guest lex Posted June 22, 2004 Report Share Posted June 22, 2004 I think that the Bank of Canada is changing their plan to be more competitive with the other bank LOCs. Apparently, interest payments won't be required after residency now. It's just changed or is about to be changed so the MDM offices might not be up to date on it. Although, it's still a good idea to pay down the interest during residency if you can. Link to comment Share on other sites More sharing options...
Guest soapyslicer Posted June 22, 2004 Report Share Posted June 22, 2004 I met with Kari today. I am going with MDM but for financial stuff-ie they will take care of my RRSP etc. However the LOC will be with National Bank or RBC. MDM is not just about the line of credit. Anyone who has gotten a RBC LOC should still go and see them. They do extensive financial planning, insurance issues, the list goes on and on. This was my second meeting with Kari and I have been really impressed with her so far. I do know interest will accrue on the amount of $ you have removed from the LOC starting from the date you take the money out. They suggest you try to pay the monthly interest if you can. However you don't have to pay anything until one year AFTER you are finished residency. At that point you have to start making payments on the amount owing. The good part of it is that you do not have to re-negotiate the terms of the LOC at that point it just continues as per the original agreement until the LOC is paid off. soapy Link to comment Share on other sites More sharing options...
Guest soapyslicer Posted June 22, 2004 Report Share Posted June 22, 2004 FYI, I had told National that I would go with RBC unless they opened up the amount per year, and I just recieved a phone call. J. Willowby from National Bank says they have just upped their total amount to 200,000 and they were willing to give me twice the max(60,000) this year. I hope to not have to use it but interesting how all the banks are working hard for our business. soapy Link to comment Share on other sites More sharing options...
Guest physiology Posted June 23, 2004 Report Share Posted June 23, 2004 Hey Soapy, WHOA, 200 000 k total eh? That sounds mighty fine. Although I still think I'm going to stick with RBC. I've already done all the paper work. Do you think we could wrestle any other concessions from National Bank of Canada? Like, for instance, beat Royal Banks offer of prime (I mean anything, prime - 0.15%, or - 0.1%) and we'll sign right away? Link to comment Share on other sites More sharing options...
Guest soapyslicer Posted June 23, 2004 Report Share Posted June 23, 2004 Hi Physiology, Who did you talk to at the RBC. I think Iam going to go with them as well so I can have the flexibility with the money. Thanks soapy Link to comment Share on other sites More sharing options...
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