Guest bcdentalgirl Posted March 12, 2003 Report Share Posted March 12, 2003 Hi everyone, Last year you guys were having a really great discussion about LOC's. I am going to talk to Scotiabank today and was wondering if anyone in the know could answer questions as they come up. Is prime + 0 standard? Are there better deals out there besides scotia? I will continue to search for those old threads. Scared to sign anything, BCDental Girl Link to comment Share on other sites More sharing options...
Guest UOMeds05 Posted March 12, 2003 Report Share Posted March 12, 2003 My first piece of advice is not to deal with any branch that is not affiliated with a Medical School. For example if you are from Parrie Sound, don't even waste your time with going to one of their banks because they will likely laugh at you when you ask for $25,000 a year for the next four years. I too deal with Scotia, and have gotten prime lending rate. That seems to be the best deal out there, although i have heard rumors of people getting prime minus a quarter or a half... but i think that those are just rumors. What i liked about Scotia which isn't necessarily true for all other lending institutions is that they now consider you a small business, and so your LOC is actually overdraft protection. So right now, I have a small business chequing account with the ScotiaBank with $50,000 overdraft protection. You take what you need and never have to worry about managing 2 different accounts. Similarly, you will only have one set of cheques to worry about etc. Their banking plans are also very reasonable at $2.99/mnth. One other good thing, they will lend up to $125,000 (therefore, $25,000/yr for 4 years, plus $25,000 to cover any previous debt). All this without a cosigner if you have a good credit rating. This is more than some other banks, and is great if you have parents who can't cosign a $125,000 loan. hope that this helps a little. Link to comment Share on other sites More sharing options...
Guest aneliz Posted March 12, 2003 Report Share Posted March 12, 2003 I'm with Royal....they gave me $27 500 a year for four years at prime + 0 without a co-signer...they are pretty good....throwing in free banking for the first year and a gold visa with a $5000 limit too. I would suggest that you check out all of the major banks...CIBC and BoM also have similar packages...TD not so much unless they've changed their mind in the past year...before you sign anything. You will have the most success dealing with a branch in a city where there is a med school...a lot of the branches in other places are not aware of these 'deals' while the branches in med school cities have 100's of students that they are dealing with. Good luck! Link to comment Share on other sites More sharing options...
Guest JSS02 Posted March 12, 2003 Report Share Posted March 12, 2003 My line of credit with Bank of Montreal offers $25K per year for the 4 years of med school plus $12.5K per year for the first 2 years of residency. Neither a co-signer nor life insurance is required. Also, there are no banking fees whatsoever and I get a credit card. Interest is at prime (currently 4.5%), and payable every month. I don't know if you're a dental student switching to med school or a predental student going to dent school, but if you're the latter then I believe interest is charged at prime + 0.5% with BMO (plus you'd get $20K per year instead of $25K), so in that case you might be able to do better with another bank. Also, it doesn't hurt to try negotiating with them. Link to comment Share on other sites More sharing options...
Guest MayFlower1 Posted March 12, 2003 Report Share Posted March 12, 2003 I'm also with Royal... To ensure I've got funding should I get accepted this year, I got pre-approval for a line of credit. I walked in one day...gave them my info...got a call the next day saying I was pre-approved...they gave it to me in writing as well. I believe I have the same deal as Aneliz...they said they'd give me up to 150K...no co-signer...the first year they are giving me 50K...the interest rate is prime...I also get the visa card and free banking. Don't let any bank charge you more interest than that. Oh, of course, to get the line of credit, as specified, I have to show them an offer of acceptance to a Canadian medical school. Peter Link to comment Share on other sites More sharing options...
Guest bcdentalgirl Posted March 13, 2003 Report Share Posted March 13, 2003 Mayflower, how did you get 50K? The reason I ask is, all the banks keeps telling me the max is ~25,000 a year. UBC's fees have just shot thru the roof and I will need about 40k peryear on top of my student loan!!! If it comes down to it, I have someone who can guarantee for me. How can I get more than 25k? Thanks a bunch! (JSS02, I will be entering first year dentistry this fall....) Link to comment Share on other sites More sharing options...
Guest UOMeds05 Posted March 13, 2003 Report Share Posted March 13, 2003 Hi again, so those of you at Royal, get free unlimited use of the bank machines,both cash withdrawals and deposits as well as free cheques and management of the chequing account? Is this because your LOC is a separate account from your every day account? Maybe it is time to visit with my bank account manager... Link to comment Share on other sites More sharing options...
Guest MayFlower1 Posted March 13, 2003 Report Share Posted March 13, 2003 bcdentalgirl, I got 50K my first year by asking. Perhaps the fact that I'd be leaving a career...or the fact that I have significant day-to-day expenses (home, kids) helped. Perhaps it was because my wife has a 150K royal medical line of credit with a good track record with them already had some influence as well. Although they didn't ask for collateral, perhaps the fact that I own a 350K home had some influence as well. I'm not exactly sure why I was able to get more...again, it was simply a matter of asking. UOMeds05, I would definitely talk with the Royal Bank prior to talking with your bank. Find out what the deal is you can get...then bring that deal to your bank...might give you more leverage if you don't want to move. Actually, my wife originally had a CIBC LOC...found the Royal Bank LOC and realized it was a much better deal...went to CIBC with the deal...they wouldn't budge...she moved to Royal and is a really happy camper. If you want the name of a good bank manager at Royal to speak with let me know... peterhill16@hotmail.com . Cheers, Peter P.S. have a great break... Link to comment Share on other sites More sharing options...
Guest Dannyboy Posted March 13, 2003 Report Share Posted March 13, 2003 well...I guess we now all know who to hit up for money.... Good luck with your interview on Friday big guy. Damn right...if you blow this one I might not have someone to pay for my celebratory martinis....... Link to comment Share on other sites More sharing options...
Guest MayFlower1 Posted March 13, 2003 Report Share Posted March 13, 2003 Dannyboy... very funny! Peter Link to comment Share on other sites More sharing options...
Guest therealcrackers Posted March 13, 2003 Report Share Posted March 13, 2003 Peter, let us know how everything goes this weekend. Here's hoping! BTW To stay on topic, TD does not actively court the business of medical students, so they offer $15/yr at prime+1. And they don't seem to be aggressively changing their policy either... Link to comment Share on other sites More sharing options...
Guest MayFlower1 Posted March 13, 2003 Report Share Posted March 13, 2003 thanks for the support therealcrackers... I'll post on the Ottawa site sometime tomorrow or saturday to let you know what happened... Peter Link to comment Share on other sites More sharing options...
Guest mumfirst Posted March 14, 2003 Report Share Posted March 14, 2003 I have a few questions about the financing of med school!!! Somewhat premature I know, but just in case... 1. Are these LOCs granted even if the applicant has other debts? (eg. small mortgage with considerable equity in home). 2. Has anyone been granted a preferred customer loan for a car during med school? 3. Are these LOCs over and above OSAP funding? (once you take the $14,000+ tuition out of it, $11,000/year doesn't leave much to live on!) 4. Are school bursaries available for tuition? (although from what I have heard, bursaries are only available to students who don't have significant assets eg. home) Of course I certainly wouldn't turn down an acceptance but I would rather not live off my RRSPs if I don't have to! Thanks in advance. Link to comment Share on other sites More sharing options...
Guest JSS02 Posted March 14, 2003 Report Share Posted March 14, 2003 I think it depends on the particular bank, but my LOC with Bank of Montreal is on top of the OSAP loans that I'm receiving, and I don't believe I had to be debt free beforehand (though I was) to be granted the LOC. And most schools do offer bursaries to students. At Western last year we could apply for financial aid in the spring (several weeks before they sent out any offers of admission), and shortly after accepting their offer in the summer they sent me a bursary assessment to be deducted from my tuition. I don't know either way about your car loan question, but the impression I had was that people who needed to borrow money to purchase a car took it out of their LOCs. Link to comment Share on other sites More sharing options...
Guest MayFlower1 Posted March 14, 2003 Report Share Posted March 14, 2003 Hi mumfirst, I'm a "mature" candidate as well (39)...I've got a significant mortgage, children, debt...you know all the things we've earned with "experience". As mentioned above, I have received pre-approval for my LOC. 1. Are these LOCs granted even if the applicant has other debts? (eg. small mortgage with considerable equity in home). yup...although I didn't have to put up any collateral, the equity on my home (approx 120K in my case) was likely perceived as some security from the bank's perspective. I have other debt which my bank (royal) expects me to consolidate into the line of credit. Let's say, for example, I get 50K for my first year (which is what they gave me)...I've got 20 grand of debt...they will ask me to put the 20K on my LOC...so I'll have 30K for my first year left over on my LOC. 2. Has anyone been granted a preferred customer loan for a car during med school? I have no idea about the car loan. I suspect you would have to purchase a car on your LOC...but I can't comment on this one...my car is paid for. 3. Are these LOCs over and above OSAP funding? (once you take the $14,000+ tuition out of it, $11,000/year doesn't leave much to live on!) I wasn't eligible for OSAP...too much income in the previous year. My understanding is you are still eligible for OSAP with a LOC as it isn't considered income...it's debt. 4. Are school bursaries available for tuition? (although from what I have heard, bursaries are only available to students who don't have significant assets eg. home) I believe they ask you to list your assets when you apply for OSAP and bursaries...I can't honestly remember which ones they counted. I'm not sure how assets factor into this one. Hope this helps. Peter Link to comment Share on other sites More sharing options...
Guest mumfirst Posted March 16, 2003 Report Share Posted March 16, 2003 Thanks for the info. My question about the car loan was a "what if" scenario....I quite like my SUV (mostly because it's paid for!) BUT it is starting to let me down on occasion. I'm not sure if it will make it through another 3 years!! Of course the whole idea of a professional student LOC is purely hypothetical at this point in time. :b Link to comment Share on other sites More sharing options...
Guest UWOMED2005 Posted March 16, 2003 Report Share Posted March 16, 2003 I'm with Royal Bank, I'd suggest NOT going with them. I'm starting to think the Bank of Montreal and Scotiabank lines of credit are superior. Why? 1) Royal Bank offers $125,000 TOTAL, including OSAP. Scotia and Bank of Montreal offer $100,000 PLUS OSAP. If you accumulate more than $25,000 in OSAP, which is likely in a 4 year program, and CERTAIN if you have any previous OSAP loans, you'll be eligible for a lot less money with Royal than with either of Scotiabank or Montreal. . . and if you have significant OSAP from undergrad, you'll run into real problems with Royal. 2) Royal Bank counts not only debt, but also outside available credit. I found out recently my maximum line of credit was reduced because I had another credit card, despite the fact I have nothing owing on it and keep it only for an emergency. 3) The money with the Royal Bank can be withdrawn any time. This can be advantageous, but it's also easy to spend too much of it in the early years, leaving you with nothing in the later years. Link to comment Share on other sites More sharing options...
Guest me maniac Posted March 18, 2003 Report Share Posted March 18, 2003 What if I have a not great credit rating and no one to co-sign for me? am I SOL? me Link to comment Share on other sites More sharing options...
Guest UOMeds05 Posted March 18, 2003 Report Share Posted March 18, 2003 I don't know about SOL, but there is at least one in my class with a similar situation of a bad credit rating and has had A LOT of difficulty securing funding. I am not positive but I think that a cosigner was the only avenue... However, I am certain that where there's a will, there's a way... Link to comment Share on other sites More sharing options...
Guest Ian Wong Posted March 19, 2003 Report Share Posted March 19, 2003 Moved out of the General Premed forum into the Med Students forum... Ian Link to comment Share on other sites More sharing options...
Guest fox Posted March 20, 2003 Report Share Posted March 20, 2003 Reading this message board kind of freaked me out! I just assumed that if I get into med school this year that I would apply for a LOC and for student loans AFTER I found out if I was accepted. Do we have to get preapproved for a LOC? I really don't want to get my hopes up before I hear anything. Does anyone know how late you can wait to apply for student loans? Link to comment Share on other sites More sharing options...
Guest UWOMED2005 Posted March 20, 2003 Report Share Posted March 20, 2003 NO, you do NOT have to get preapproved for a line of credit. In fact, for most of us who don't have great credit histories, the acceptance letter in your hand is what makes you an attractive candidate for a line of credit. Don't worry TOO much about your previous credit history. I missed a few min credit card payments in undergrad, and even had a totally unpaid bill with BMG for some CDs I never ordered. . . I was approved for the LOC no problem. As long as you didn't buy an XFL team a few years back, don't worry too much. Link to comment Share on other sites More sharing options...
Guest MayFlower1 Posted March 20, 2003 Report Share Posted March 20, 2003 fox, You absolutely do not have to get a pre-approval. I did as I have significant financial responsibilities (mortgage, kids, etc.) and, as well, will be leaving a significant career should I get accepted to med school. I didn't want to take ANY chances with respect to having funding to support myself and my family...in the event I get an offer...I want to be able to react with confidence that I'll be able to pay my bills. That being said, it's really easy to get pre-approval...if you're worried about credit, etc., just go to the bank and ask for approval contingent upon getting a spot in a med school. Like UWOMED2005, my credit rating is good but I've missed the odd minimum payment like many other people...I had no problem getting a LOC. Peter Link to comment Share on other sites More sharing options...
Guest Sil Posted March 20, 2003 Report Share Posted March 20, 2003 No need to worry about LOCs. Once you get accepted and have a decent record you will have not problems (heck I forget to pay my credit cards on time most of the time, I do eventually pay them though). On buying a new car. Rememeber that you can get OSAP to a max of about $10000 a year for Ontario but that they deduct the cost of your car (new or used) if it is above $5000 (they consider cars luxury items). At the U of O they told us that we could get something for up to $10000 (without OSAP reduction) but I doubt them as my classmates with cars worth more than $5000 had their OSAP reduced. Link to comment Share on other sites More sharing options...
Guest UWOMED2005 Posted April 8, 2003 Report Share Posted April 8, 2003 Apparently, MD Management has negotiated a new LOC plan for med students with Citibank Canada. For those of you who don't know, MD Management is a subsidiary of the Canadian Medical Association that provides financial services (RESPs, RRSPs, mutual funds, financial advising) to members of the Canadian Medical Association. $120,000 for the 4 years of medical school, an additional $40,000 for up to 4 years of residency, and government loans DO NOT count against that credit limit. . . . though they kind of encourage you to consolidate the loans in residency considering this interest rate is lower than OSAP repayment interest rates. I'm pretty sure the interest is at prime but I'm going to confirm that. Looks pretty good. . . I'm thinking of switching myself. Link to comment Share on other sites More sharing options...
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