LOC

[Guest CareBear15]

Hi everyone,

 

I've been reading last year's "What's up Doc?" and it's been recommended that incoming students wait until orientation before they set up LOC's. However, due to extenuating circumstances I'm going to need an LOC right away. Does anybody have any recommendations as to who to speak to, or which bank would be best? Should I try and set something up from Toronto or visit some banks in Kingston? So far the LOC at BMO looks really good... but I'm clueless when it comes to finances.

 

Thanks for all your help!

[Guest JC15]

Hey,

 

I tried to set up my LOC with BMO before I got to Kingston...and if you deal with bankers who are not familiar with the med student LOC program, they give you a REALLY hard time. Even with my parents offering to cosign, the head office phoned to say that they would not approve my LOC because my parents didn't make enough money. However, when I got to Kingston and went to the local BMO, I had my LOC approved for $25,000/year in about 5 minutes just by showing my letter of acceptance and letting them do a credit check. My parents didn't even have to cosign.

 

I would recommend that you set up your LOC at a bank that is accustomed to dealing with med students. If you're in Toronto, I'm sure there must be a branch that deals with the UofT med students....maybe you could post on the UofT forum and see if anyone knows. That would at least save you a trip to Kingston.

 

I know CIBC, Royal Bank, and MD Management all offer LOCs as well. They all have slightly different offers which they go over first week at orientation. I think the most you can get from any bank is $25K per year. BMO's plan is pretty good...you only pay interest (which is prime) and you get $25K/year for 4 years of med school and $12.5K/year for 2 years of residency.

 

Good luck and see you at orientation!

 

Jenny

[Guest seedstrike]

MD Management (through National bank) has a max of 30K per year for their LOC. I believe every other bank only goes up to 25000/year.

[Guest Kirsteen]

Hi there,

 

Just to clarify what's been mentioned on a few other LOC threads: the Royal Bank is offering a total of $150,000 in their LOC over a four year medical program.

 

Cheers,

Kirsteen

[Guest CareBear15]

Thanks everyone for your advice, it's greatly appreciated.

[Guest md23]

Just trying to sort through all the loc lingo, and the different packages from banks. The way I see it the interest rate (prime) and the amount of credit total and anually are the biggest deal. After that, its just haggling over services chargers and some freebees....? Any advice, will be much appreciated. thanks,

 

md23

[Guest drews97]

A big presentation will me made to you in your med class probably in the first week of school. There, they will try to sell their wares. They are actually all quite similar (with the exception of maybe Scotiabank, which has a non-competitive package). My only advice is to beware the claims of 'deferring' interest payments. This does not mean that you don't pay interest, it just means that you can allow interest to accumulate without having to pay it for a long time, leading to potentially bigger payments later.

[Guest Ian Wong]

Floating to the top...

 

Ian