Trying to negotiate a group rate for RBC LOC?

[Guest physiology]

Hello Lex,

 

Yes, I realized during our discussions that it was just an oral agreement. However, I'll check my agreement later. I just realized how quickly he rushed me through it. You feel pressure to NOT read it thoroughly.

 

Anyway, there was no agreement that I could sign that said "your interest payments will be at prime during residency/fellowship." George just stated that residency would be at prime, but fellowship would be negotiated on a case by case basis.

 

I can tell he's VERY knowledgeable about the medical field. He's dealt with a lot of customers. In fact, he was telling me of this pediatric neurosurgeon who just finished residency and went down to the States.

 

So perhaps getting prime is dependent on getting into a high-income fellowship? (Pediatric gastroenterology as opposed to as family medicine?) These are all speculations. But remember, banks are incredibly astute and really know how to make money.

 

Donald Kaufman,

 

Prime is set by Allan Greenspan, I mean the Bank of Canada So prime this month is 3.75% but next month it could be higher. It depends on the eocnomy. Theoretically, if we hit a recession era in the next few years, it could go up to 18% like it did before in the early 80s. However, from the looks of it, it doesn't APPEAR to be going that way. But give Bush a few more years in power, and who knows...but I digress...

 

As far as I know, they will NOT give you a fixed rate.

 

Regarding getting private life insurance, he said something about how I'm getting a good deal paying 12 cents/$1000 and that I wouldn't get this rate at such a young age, and blah blah blah...I didn't really get it. Thus, I never really had the chance to ask about other sources of life insurance.

 

That's a good question though.

[Guest lex]

There was a post a little while by Kisteen: she mentioned that third party life insurance was available and may make better economic sense.

 

To echo Physiology, prime's at 3.75 but this rate is historically low, so a raise in interest rates would shouldn't surprise anyone. There have been murmors about it lately but as of yet, no movement.

 

I too was wondering whether choice of specialty/fellowship willl affect bargaining power when it comes time to begin payment.

 

The best advise would come from those who have gone through the process. Anyone like that out there? Maybe this should be posted somewhere else. Ian, if you're listening, any advise on this? Thanks.

 

Edit: I posted the question in the general resident physician discussion page. Hopefully somone will bite.

[Guest ubcpharmer]

Getting private life insurance is an option that the bank is willing to accept as long as the insurance will cover the outstanding liability. I was speaking with an family friend who owns a insurance brokerage in in ontario and it was his opinion that 12 cents/1000 was a good deal when the liability is low but may not be so good when we borrow close to the maximum amount. you have to remeber that we are young healthy individuals and thus the premiums for a $200000-300000 life insurance would be very low. If people are interested, I can speak to him in particular aabout rates and possibilty of group deals

[Guest Nikhila]

I went into an RBC branch in Ottawa a couple of weeks ago and got the paperwork started on my LOC and opening an account there. However I was told that they would need proof that I was enrolled before I could actually get my SP card and the LOC itself. Has anyone actually got all the administrative stuff out of the way so that they have access to their LOC right now? Or are you waiting like myself?

 

Thanks,

Nikhila

[Guest Kirsteen]

Hi there,

 

The Toronto RBC folks were satisfied simply by taking a copy of my acceptance letter. At this point, my LOC has been approved and the documents are in my Toronto mailbox waiting to be signed and returned. The RBC rep has assured me that, once received, the LOC should be active within 2-3 days, i.e., next week.

 

Maybe you can ask your RBC representative to chat with the Toronto-area representative to try to align their policies? :rolleyes

 

Cheers,

Kirsteen

[Guest dr deelish]

I had the same problem .. I've been approved for an LOC, but without showing proof of registration (or a confirmation of registration from UT) I don't have access to the LOC. I had my LOC-business done at the Toronto branch .. so maybe this is just RBC policy ... ?

[Guest soapyslicer]

Hi Everyone,

 

I finally went with the RBC LOC. Even once you sign on the line and they tell you it is all set, it does not show up on your account until your school signs a special form and faxes it back to them. Some school may 'group' register sooner than others hence the ability to access the funds. UBC does not register before the end of July so I was in a bind. I specifically asked then to open it sooner and they granted my request however they only approved 70,000 until I am officially registered. This was in large part that I needed to move my family to Prince George in the next few weeks as well as buy a house.

 

soapy

[Guest walton1]

Hi folks,

 

Noticed that RBC seems to require life insurance (is this always the case?). Anyway, at BMO the life insurance is not compulsory, although they did try to talk me into getting it. Their line was "so your estate won't be stuck with the debt," yeah right!! No point in life insurance unless you have dependents (or I suppose if your bank requires it to be held).

 

 

wally

[Guest shrinkage]

Wow...

 

Sorry to confuse you guys even further...

 

I got my LOC approved at RBC a few weeks ago, and as far as I know, everything is Kosher...I got my access card, etc., (I didn't have an account previously), and I saw my LOC balance on the ATM and everything. I'll try to do a withdrawal (I haven't needed to yet) to make sure that the money is actually "there", but I'm pretty sure that it is...

 

Also, the lady I dealt with gave me a way more expensive and different rate for the life insurance (something like $0.90 per $1000 borrowed, which she assured me was a completely separate deal from the LOC)...I've since figured out that I can cover myself for about a quarter mil, for something like $20/mth using the "Alumni Manulife" service available to most Ontario university grads (check with your school to see if this is offered if you are interested).

 

Anywho...it is weird and scary that these huge differences exist...

[Guest shrinkage]

Okay, I just checked (I've enrolled for on-line banking).

 

All LOC funds accounted for...

 

I guess it doesn't REALLY matter whether you get access to the cash now or in a month or two, though, right? Realistically, you don't NEED the cash until the tuition statement is sent to you.

 

Anywho, just thought I'd update you guys...

>:

[Guest Kirsteen]

Hi there,

 

As a bit of an update: my RBC LOC was approved the week before last, I received the paperwork to sign off late last week, and returned it to the branch this week. The LOC became visible in my on-line banking accounts today and I now have access to the full balance. Incidentally, in case this is of use to anyone, once you are approved and your signed forms are received, RBC are willing to transfer funds (~$10,000) for your use prior to the LOC become officially active.

 

Cheers,

Kirsteen

[Guest shrinkage]

Hi guys (and gals),

 

I just wanted to say that I have no idea how that "mad face" suddenly appeared on my last post. I'm pretty sure it wasn't there originally. It probably seems kind of out of context given the neutral tone of my message.

 

Maybe this is a problem with the forum software?

[Guest gobluebaby]

Hey All,

 

I am about to sign my papers for an RBC LOC, but I am concerned that they are only making available 30,000$ right away. I thought the great benefit with RBC was that the amount / year was unlimited up to the total of 150K.

 

Anyone else have similar experiences ???

 

Thanks,

 

GoBlueBaby

[Guest Kirsteen]

Hi there,

 

I've been dealing with the RBC at Dundas and University, here in Toronto and they've made the whole lot available if I'd like it. If you need huge, front-end flows of cash then you might wish to query the reason for their limit.

 

Cheers,

Kirsteen

[Guest Nikhila]

I've been dealing with the RBC folks in Ottawa and they have made $80,000 available to me up front...

 

nikhila

[Guest Nikhila]

I had life insurance tacked on because I don't want to put up my parents as co-signers. It's 12 cents/$1000 borrowed. What else...I get a Student Price Card (remember those from high school?), 12 free bank drafts, an account with 25 free transactions and no minimum balance or monthly fee.

 

For anyone who was confused about the discrepancy regarding life insurance costs with RBC (I read someone was quoted $0.90/$1000, I was quoted $0.50/$1000) the $0.12/$1000 is for people whose LOC amount is 100K or over

 

Nikhila

[Guest Ian Wong]

Floating back to the top.

 

Ian