150k LOC for med students is a myth?

[Sergie]

Hi guys!

I obviously need a piece of advise.

I 've been recently accepted to McGill (MDCM program) and went to RBC to ask about a med students LOC.

Person I talked to (Michael, Carrefour Laval branch) two weeks ago told me that RBC will open a 150k LOC if my credit history is good. Today I got a call from the branch director who anonced that 150k is impossible, this never happened and RBC deals only with 20k LOC max for the first year students. This get increased every year by another 20k up to 150k during 8 years. BUT! This will be done only if I prove I need it to pay for my studies/books etc. Otherwise - nothing.

She even warned me that they will investigate my spendings because I cannot use this money to buy a car or buy/rent an apartment - the purpose is to pay for schooling.

I am totally confused

To pay for med school I was going to use a governmental loan/bursary and understood that a med school student LOC is given as a supplement to facilitate other necessary spendings.

Could someone shed some light on it please?

I read several posts on this forum about people getting 150k almost right away, at the beginning of the school. I also have a broshure from RBC that sais the same. Have the rules been recently changed? HAs anyone else had the same questions/problems before?

thanks a lot.

sergie

[JJ1985]

I don't know about the RBC LOC (although when I was there for a different account they offered me a LOC to set up) but I got mine through MD Financial which gives ti through National Bank. There is a specific person set up for McGill students who will help you get your LOC and you can definitely get one up to 150k. Hope this helps!

[flying kumquat]

You can get a 150k LOC in med school from RBC. In my first year (2005), I got 30k from them, then had it bumped up to 150k in second year. I thought it was kind of a tedious exercise to go in begging for more every year when they could just approve me the whole 150k. They were fine with that.

 

I don't need to prove anything to them except that I'm enrolled in Queen's Med. I'm leasing a car with my LOC, pay for my rent, have gone on a few trips, and frankly, they don't care. All they want is their interest payments on time, and the principle payments when I'm no longer in school. My credit history was good, no cosigners, no previous debt, etc.

 

I'm dealing with one of the RBCs in Ottawa and I go to school in Kingston. The branch I go to in Ottawa is near one of the big hospitals and has someone set up for dealing with medical students/professionals specifically. You could maybe try to go to a branch that deals with this more often, if your branch doesn't.

[Sergie]

I don't know about the RBC LOC (although when I was there for a different account they offered me a LOC to set up) but I got mine through MD Financial which gives ti through National Bank. There is a specific person set up for McGill students who will help you get your LOC and you can definitely get one up to 150k. Hope this helps!

 

Thanks JJ1985!

What is MD Financial, LOC? If yes, how much is the LOC and what is the interest? at prime?

How was it set up, I mean, was it at the beginning of the first or the second year, gradually or in one shot?

Sorry for so many questions. I have to talk to a finance adviser at McGill tomorrow - just to make sure that it is worth to ask.

One last question: Do I apply for the LOC before being approved for the governmental loan or it does not matter? This person on the phone said to bring something from the school to prove I need money, but the school itself begins only in August...

Thanks again, I appreciate your answer very much.

sergie.

[Sergie]

You can get a 150k LOC in med school from RBC. In my first year (2005), I got 30k from them, then had it bumped up to 150k in second year. I thought it was kind of a tedious exercise to go in begging for more every year when they could just approve me the whole 150k. They were fine with that.

 

I don't need to prove anything to them except that I'm enrolled in Queen's Med. I'm leasing a car with my LOC, pay for my rent, have gone on a few trips, and frankly, they don't care. All they want is their interest payments on time, and the principle payments when I'm no longer in school. My credit history was good, no cosigners, no previous debt, etc.

 

I'm dealing with one of the RBCs in Ottawa and I go to school in Kingston. The branch I go to in Ottawa is near one of the big hospitals and has someone set up for dealing with medical students/professionals specifically. You could maybe try to go to a branch that deals with this more often, if your branch doesn't.

 

Exactly!

That's what I start thinking: Is it because of Montreal (Quebec) I have all these strange conditions? I am saying "strange" because I am an RBC client for more than 8 years, married with a working spouse, perfect credit history, no debts, two mortgages (but in different banks). May be they want me to consolidate everything in RBC before offering something interesting?

Thanks for your reply. Now I see better what to talk about...

 

Any one else? Please...

[blinknoodle]

For MD Management, see http://mdm.ca/md/studentresident/students/index.asp?url=/content/md/solutions/banking/line-of-credit-for-med-students.asp&language=E

 

I have found that unless you deal with the branch/specialist that deals with medical students, it can be harder to get the LOC you want.

 

At least in London, Scotia also has a very competitive LOC package and many of my classmates are switching to Scotia.

[Sergie]

So, this is probably right to assume it DOES depend on the location (?)..

In general, how often do you need to borrow money from your LOC and what are the main concerns (I did my undegrad outside of Canada and have little idea about a student life here)? As I understood, tuitions are not covered 100% by the gov loan, therefore, some additional back ups are needed, right?

What are the main differences in spendings between med and other type of students?

Thanks a lot to everyone!

s.

[The Bunny]

I got my LOC from another bank in montreal. I got it incremental b/c I do not anticipate needing it but I suppose I could have gotten one large one if I had wanted. The nice bank lady told me to use it to travel this summer so I do not think it is a quebec thing.

[abcabc]

There's a simple solution to your problem: go to a major downtown branch. People at these little local branches have no clue how this med student LOC works and just freak out when you ask for 150K.

 

I had the same experience but ended up getting the whole LOC after a fight with people at my local bank and closing my account there! If you want, I can tell you where to go and who exactly to talk to, in order to get the entire amount right away. Just send me a personal message here.

[deedubya]

I sent you a PM, but I'll try to answer some of your other questions here...

- As far as I remember, the RBC LOC isn't contingent on Gov't loans. Your proof of acceptance should suffice.

- Use of LOC really varies from person to person. Someone paying Quebec tuition may not need to use their LOC so much, whereas someone paying out-of-province tuition may rely more heavily on LOC funds. Regardless, after first year, there are other costs associated with med school (ie. USMLE exam fees, PDA, a more professional wardrobe, carms interviews travel expenses, etc... - I don't even know about all of them yet) and an LOC should really help with those.

 

D

[Wolvenstar]

I think whoever you talked to is feeding you bull outta their a**. Try going to a different RBC but make sure you bring something that says you have been accepted into Medical program at such and such a school.

 

I am in my undergrad and have RESPs to pay for my tuition but I got a line of credit for $40,000 to use on life expenses, and even told them as such. I know the bank doesn't like to give it to you all at once, they prefer to do it in lump somes, but if you want it all at once and you are approved (because of good credit) they have to give it to you. Remember a bank is a business just like everywhere else. The customer is always right. The might hum and haw a little about giving you $150,000 all at once but if you want it available all at once then they have to give it to you. Trust me, several of my friends have mothers who are higher up with the RBC and I have checked this out.

[Sergie]

Hi everyone!

I appreciate everything that has been said here. I should admit, it is an amazing forum and almost every thread is a precious one. I registered about a year ago and educated myself about all cons and pros of a profession of being a medical student reading your questions and answers.

Thank you all!

 

If you do not mind me asking, it would be really nice to read your posts describing your financial experience/planning while in med school. How a resident life is different from this of a med student in this aspect? How much time takes commuting for each of you? I am especially interested in stories from people who don't live 5 min from McGill. Commuting will take me ~2.5-3h every day from Laval to DT Montreal - so, here a dilemma: to rent an apartment once in a while during exams session or coming all this way from Laval (Vimont)? This is one of the main reasons why I want to have a back up.

Options?

[nutritional_lee]

I am especially interested in stories from people who don't live 5 min from McGill. Commuting will take me ~2.5-3h every day from Laval to DT Montreal - so, here a dilemma: to rent an apartment once in a while during exams session or coming all this way from Laval (Vimont)? This is one of the main reasons why I want to have a back up. Options?

 

Hi Sergie,

 

I plan on living in the West Island for at least the first two years of med school (if not all four); I've been assured by current students that this is indeed possible. Rent tends to be slightly less and apartment sizes tend to be a bit larger (at least where I'm looking), and after having lived in both the suburbs and in downtown Montreal, I prefer the suburbs. I plan on taking the McGill shuttle bus to and from campus most days, and the 211/221 on days where I have to stay late. It'll probably take 60-90 minutes each way, depending on the time of day.

[MD1400]

2.5 to 3h is quite the commute. I guess it won't be that bad if you are able to study on your trip and I believe McGill has their lectures recorded so you may not need to come down everyday especially during exam times, but I'm not sure what the schedule will be like.

[bones]

It doesn't sound like this has been said, but for any medical school LOC, be sure to ask specifically for someone who deals with medical students and professional school LOCs. Every major branch should have a person like this. With RBC, their med student/professional school representative should hook you up with 150k no problem, with only the acceptance letter needed. Anyone else will have no idea what you are talking about, as someone else has already mentioned.

[Inspired17]

Hi everyone!

I appreciate everything that has been said here. I should admit, it is an amazing forum and almost every thread is a precious one. I registered about a year ago and educated myself about all cons and pros of a profession of being a medical student reading your questions and answers.

Thank you all!

 

If you do not mind me asking, it would be really nice to read your posts describing your financial experience/planning while in med school. How a resident life is different from this of a med student in this aspect? How much time takes commuting for each of you? I am especially interested in stories from people who don't live 5 min from McGill. Commuting will take me ~2.5-3h every day from Laval to DT Montreal - so, here a dilemma: to rent an apartment once in a while during exams session or coming all this way from Laval (Vimont)? This is one of the main reasons why I want to have a back up.

Options?

 

I think that it should be fine for the first 2 years. As many others, I plan on staying in the West Island for at least the first 2 years. I may try to find an apartment downtown for clerkship, but, for the moment I will stay where I am because I don't feel like dealing with the hassle of moving

 

I will commute to McGill via train. I've been doing this for 3 years already & it's worked out fine. I take the train to the Bell Center & walk up the mountain because I hate the metro. Is there a train from Laval to the Bell Center? If so, you may want to consider this option. I find it a lot easier to get work done on the train as compared to the bus or metro. That way, the 2-3 hours isn't wasted, because you can be somewhat productive while commuting.

[doc2B]

Hi there,

 

I'll let you know right now that I didn't read the entire thread, so if I'm repeating someone I apologize.

 

I just took out a 150k LOC from RBC. I'm in Halifax and I was accepted to Dal. I know that some people at the bank don't know much about the professional LOC but they should at least know that they exist to ask about them. I don't see it being an issue of area, but I guess that's possible. In my situation I was required to give them a copy of my acceptance letter. They did another credit check (they always have to do this) and they gave me the full 150K. The only stipulation was that my fiance (all my finances are shared at this point) was also on the LOC (kind of cosigned) for the full amount. The banker specifically stated that this was only due to the fact that I'm listed on our mortgage (as is my fiance) but they have no way of guaranteeing who pays for the mortgage. Since he is still going to have an income and has a larger income than I do currently he was required to be on the LOC. We also have another 30K LOC separate from the professional one (higher interest rate) and this didn't effect our approval for the 150k.

 

The banker specifically told me (I didn't ask) that I can use the money for whatever I want to. I'm not required to use for tuition only. He said they don't look at what you spend it on. And I know a number of people in med school right now that have bought new cars, gone on trips, pay rent etc. They don't have any other job with which to pay for these items.

 

Good luck!

[Sergie]

Hi guys!

Thanks to everyone.

Here is the end of the story: As it was suggested, I went to the Sherbrook/Peel RBC branch that is located right across McGill Un med building, and talked to the person who deals specifically with med students LOCs, credit cards and so on.

Yesterday I signed all the papers for 125k LOC (at a prime), which has been "reduced" to 30K for the first year of studies. As it was mentioned before, to get an increase of 20-30K per year I will have to prove the bank I really need them, i.e. I will have to spend them all and explain how and why. It was repeatedly said that the LOC is given to support med students to pay tuitions and living expenses. If I want to use it for mortgage payments, for example, I will have difficult times providing explanations and getting next year increase even if my mortgage payments are lesser than my monthly rent. The last made me giggle - absurdum apotheosis

I got my med student client card along with the gold VISA card and the 5K limit on it. The funny thing was that when I asked a banker to give me 10-11K limit he, certainly, refused to do so because of already existing another gold card with a bigger limit on it... but 19.5% interest. I said that I am ready to cancel this card and want to get the first one with 10K and lesser interest and no doubt this request was also turned down. The last demarche was undertaken mostly to see what's going to happen if ask for only one card with lesser interest instead of two, which makes sense if you plan to safe more not to spend more. My theory was that RBC Montreal branches have gotten some controversial directives particularly about McGill med students support program and cannot explain clearly why they do what they do.

So, at the end I decided to sign for this LOC and continue searching. National Bank MD Management program will be my next attempt. As Doc2B said, she’s got everything from RBC right away and, consequently, won't have a headache of bagging for additional increases every 12 months but she will study in Dal not at McGill. That brings me to the point: may be McGill meds are the biggest spenders ever?

By the way, just for those who will read these posts later, yes, mine and my spouse's incomes and credit histories were checked - no problem. Also, we have no debts, no loans, several valuable assets and mortgage in TD (!) to pay. That is why I guess, we are not interesting clients for the bank: we never held any debts for longer than 1-2 months. Apparently, RBC does not make much money on us We are way too accurate.

Moral: To borrow money from the bank you must assure them it's worth lending money to you, i.e. you will be paying %% for long enough hehehe

 

I will be happy to learn of other McGill students' experiences this year. Please, share! Especially, I am interested in seeing how loan/bursaries/scholarships approvals affect banks decision, if this is the case.

 

GL. See you all in fall.

 

 

 

 

Hi there,

 

I'll let you know right now that I didn't read the entire thread, so if I'm repeating someone I apologize.

 

I just took out a 150k LOC from RBC. I'm in Halifax and I was accepted to Dal. I know that some people at the bank don't know much about the professional LOC but they should at least know that they exist to ask about them. I don't see it being an issue of area, but I guess that's possible. In my situation I was required to give them a copy of my acceptance letter. They did another credit check (they always have to do this) and they gave me the full 150K. The only stipulation was that my fiance (all my finances are shared at this point) was also on the LOC (kind of cosigned) for the full amount. The banker specifically stated that this was only due to the fact that I'm listed on our mortgage (as is my fiance) but they have no way of guaranteeing who pays for the mortgage. Since he is still going to have an income and has a larger income than I do currently he was required to be on the LOC. We also have another 30K LOC separate from the professional one (higher interest rate) and this didn't effect our approval for the 150k.

 

The banker specifically told me (I didn't ask) that I can use the money for whatever I want to. I'm not required to use for tuition only. He said they don't look at what you spend it on. And I know a number of people in med school right now that have bought new cars, gone on trips, pay rent etc. They don't have any other job with which to pay for these items.

 

Good luck!