Dayne67 Posted May 23, 2009 Report Share Posted May 23, 2009 I was actually hoping to get some opinions on financing US med school. The Canadian dollar is right now hovering close to 90 cents US. There have been forecasts that the Canadian dollar could be headed for parity with the US dollar. Obviously, this could be a great time to convert one's personal liquid funds - because we all know that the loonie will inevitably fall back down to the 75-80 cents range. But what about obtaining a secured property equity LOC (about 3.25% interest right now) and also converting a certain amount from there as well? I know that I would have to start paying interest right away. But wouldn't the interest paid during the first year (assuming a favourable interest rate because of the ongoing recession) be offset by the potential +20% gains made because of a favourable conversion rate? That is of course assuming that one would pay back the amount taken out by the end of the year with liquid funds and that the Canadian dollar will come back down to earth. Admittedly, I don't have too much knowledge in finance. So, I was hoping that someone could give their opinion on something like this. Link to comment Share on other sites More sharing options...
terryann Posted May 24, 2009 Report Share Posted May 24, 2009 My sister started university in the US when the Canadian dollar was at $1.10..unheard of...for whatever reason, she only purchased one years worth of US DOLLARS for her schooling...MISTAKE.. She just finished third year...and somewhere between first year and now the Canadian dollar has fluctuated so much....at one point, it was costing her 30% more because of the exchange rate...and it is not just tuiton, it is rent, living etc.. She now has a rule that once it gets above 85 cents..she buys.....thus she has been on a buying binge lately....and is planning on getting her funds needed for next year now.. A lesson, she has learned is to buy lots when it is high...and yes, it may go higher...but it is a gamble...remember 6 years ago or so...it was somewhere around 60 cents... To avoid driving herself crazy..(.if it goes up after she buys.)..she does not check the rates...and she never converts when purchasing anything in the US...or proably she would not have eaten when the Canadian dollar took a dive as she would have realized the true cost... Whether it is the right time to buy......who really knows...but it sure removes alot of stress, if you buy early....and at a decent rate...and once you buy, you move onwards... What school will you be attending? Link to comment Share on other sites More sharing options...
terryann Posted May 24, 2009 Report Share Posted May 24, 2009 My sister started university in the US when the Canadian dollar was at $1.10..unheard of...for whatever reason, she only purchased one years worth of US DOLLARS for her schooling...MISTAKE.. She just finished third year...and somewhere between first year and now the Canadian dollar has fluctuated so much....at one point, it was costing her 30% more because of the exchange rate...and it is not just tuiton, it is rent, living etc.. She now has a rule that once it gets above 85 cents..she buys.....thus she has been on a buying binge lately....and is planning on getting her funds needed for next year now.. A lesson, she has learned is to buy lots when it is high...and yes, it may go higher...but it is a gamble...remember 6 years ago or so...it was somewhere around 60 cents... To avoid driving herself crazy..(.if it goes up after she buys.)..she does not check the rates...and she never converts when purchasing anything in the US...or proably she would not have eaten when the Canadian dollar took a dive as she would have realized the true cost... Whether it is the right time to buy......who really knows...but it sure removes alot of stress, if you buy early....and at a decent rate...and once you buy, you move onwards... What school will you be attending? Link to comment Share on other sites More sharing options...
future_doc Posted May 24, 2009 Report Share Posted May 24, 2009 terryann makes sense. Don't make assumptions, do not accept our opinions, what does anybody know, who are we, definitely do not accept the opinions of forecasters who are not right that often. Do not gamble with foreign exchange and loans. Years ago a city in Quebec borrowed an erormous sum of money in Swiss francs b/c the int. rate was lower than in Canada, and the contract specified they had to repay in Swiss francs. They had experts advising them. When they had to pay back the loan, due to foreign exchange fluctuations, they had to pay back about twice as much as they originally borrowed in Canadian currency. K.I.S.S. [keep it simple stupid]: Go to a Canadian med school if you can, it is cheaper. If you can afford US$60,000/yr, listen to terryann, and be prepared to pay up to Cdn $75,000/yr for 4 years = Cdn $300,000. Link to comment Share on other sites More sharing options...
Dayne67 Posted May 24, 2009 Author Report Share Posted May 24, 2009 My sister started university in the US when the Canadian dollar was at $1.10..unheard of...for whatever reason, she only purchased one years worth of US DOLLARS for her schooling...MISTAKE..She just finished third year...and somewhere between first year and now the Canadian dollar has fluctuated so much....at one point, it was costing her 30% more because of the exchange rate...and it is not just tuiton, it is rent, living etc.. She now has a rule that once it gets above 85 cents..she buys.....thus she has been on a buying binge lately....and is planning on getting her funds needed for next year now.. A lesson, she has learned is to buy lots when it is high...and yes, it may go higher...but it is a gamble...remember 6 years ago or so...it was somewhere around 60 cents... To avoid driving herself crazy..(.if it goes up after she buys.)..she does not check the rates...and she never converts when purchasing anything in the US...or proably she would not have eaten when the Canadian dollar took a dive as she would have realized the true cost... Whether it is the right time to buy......who really knows...but it sure removes alot of stress, if you buy early....and at a decent rate...and once you buy, you move onwards... What school will you be attending? I'm trying to decide between Wayne State and EVMS. But I leaning towards Wayne State because the cost difference is only $5-7k per year higher. Did your sister though convert her own personal liquid funds or bank loan (LOC) funds when the rate is favourable? Also, which company/firm/bank does she use to do her currency conversion (i.e. XE, PeerFX, IB, Jameson, regular banks, etc.)? I am going to convert all the liquid funds available to me for sure. I've been waiting cause the dollar seems to be on the upward trend. And forecasters at saying that it will keep rising. If it reaches at least close to parity, I seriously consider even converting the secured LOC funds available to me and hang on to my own liquid funds. I figure the 3.25% interest rate pales in comparison to gains made by a really good conversion rate. Link to comment Share on other sites More sharing options...
terryann Posted May 24, 2009 Report Share Posted May 24, 2009 My sister deals with the Bank of Montreal in Canada...she has a Canadian account and an US account with the Bank of Montreal. When the rates are good, she calls them to transfer Candian dollars to her American bank account. When she needs the money, it is transferred to her bank in the US. She does check around for rates and has found that most banks will meet the others if you speak with the manager...but sometimes the independent brokerage firms offer a better rate.....and she gets the money there, then deposits it to her US account.at the BMO and transfers when needed.. I do know in second year, she was really stressed as the dollar kept dropping dropping.. I know that she believes that it was her decision to go to the US...and these are the consquences...it is what it is, and one has to find the least stressful, financially wise way to deal with it.. The decision is yours... No matter what happens with the dollar...your goal is to be a physican...and try not to put unnecessary stress on yourself, which you will by constantly worrying about the dollar during the school year...plan ahead...even if you lose a bit.....one cannot put a price on peace of mind.. Also she has a US credit card from BMO...she cannot get one in the US.. She had a few issues getting a cell there with a plan.because she did not have a social security number....only server she could find was Sprint..works well she gets free incoming for her family in Canada.. I hope this helps...you are wise to be looking into this now.. Link to comment Share on other sites More sharing options...
Guest viscous Posted May 24, 2009 Report Share Posted May 24, 2009 terryann makes sense. Don't make assumptions, do not accept our opinions, what does anybody know, who are we, definitely do not accept the opinions of forecasters who are not right that often. Do not gamble with foreign exchange and loans. Years ago a city in Quebec borrowed an erormous sum of money in Swiss francs b/c the int. rate was lower than in Canada, and the contract specified they had to repay in Swiss francs. They had experts advising them. When they had to pay back the loan, due to foreign exchange fluctuations, they had to pay back about twice as much as they originally borrowed in Canadian currency. K.I.S.S. [keep it simple stupid]: Go to a Canadian med school if you can, it is cheaper. If you can afford US$60,000/yr, listen to terryann, and be prepared to pay up to Cdn $75,000/yr for 4 years = Cdn $300,000. That is when Canadian schools wont act like A.R.S.E.S Link to comment Share on other sites More sharing options...
silvermen85 Posted May 24, 2009 Report Share Posted May 24, 2009 My sister deals with the Bank of Montreal in Canada...she has a Canadian account and an US account with the Bank of Montreal. When the rates are good, she calls them to transfer Candian dollars to her American bank account. When she needs the money, it is transferred to her bank in the US. She does check around for rates and has found that most banks will meet the others if you speak with the manager...but sometimes the independent brokerage firms offer a better rate.....and she gets the money there, then deposits it to her US account.at the BMO and transfers when needed.. I do know in second year, she was really stressed as the dollar kept dropping dropping.. I know that she believes that it was her decision to go to the US...and these are the consquences...it is what it is, and one has to find the least stressful, financially wise way to deal with it.. The decision is yours... No matter what happens with the dollar...your goal is to be a physican...and try not to put unnecessary stress on yourself, which you will by constantly worrying about the dollar during the school year...plan ahead...even if you lose a bit.....one cannot put a price on peace of mind.. Also she has a US credit card from BMO...she cannot get one in the US.. She had a few issues getting a cell there with a plan.because she did not have a social security number....only server she could find was Sprint..works well she gets free incoming for her family in Canada.. I hope this helps...you are wise to be looking into this now.. Why doesnt she apply for a SSN? Link to comment Share on other sites More sharing options...
token Posted May 24, 2009 Report Share Posted May 24, 2009 How do you apply for a SSN? I think I was given a temporary one to apply for financial aid but I'm not sure when that expires. Link to comment Share on other sites More sharing options...
future_doc Posted May 29, 2009 Report Share Posted May 29, 2009 Now is the time to run out and buy your US dollars for your education in US, look at the foreign exchange rate today. Link to comment Share on other sites More sharing options...
token Posted May 29, 2009 Report Share Posted May 29, 2009 Amaaaaazing. Link to comment Share on other sites More sharing options...
Dayne67 Posted May 29, 2009 Author Report Share Posted May 29, 2009 Now is the time to run out and buy your US dollars for your education in US, look at the foreign exchange rate today. Economists and currency specialists are saying that the dollar will reach parity. There's no guarantee of course that will happen, but I think that I'm going to wait for now. It seems to be on an upward slope. Are you guy's going to use XE or just a regular bank to convert your funds? Link to comment Share on other sites More sharing options...
Oak Posted May 29, 2009 Report Share Posted May 29, 2009 woohoo Cdn hit 90 cents! Link to comment Share on other sites More sharing options...
token Posted May 30, 2009 Report Share Posted May 30, 2009 Economists and currency specialists are saying that the dollar will reach parity. There's no guarantee of course that will happen, but I think that I'm going to wait for now. It seems to be on an upward slope. Are you guy's going to use XE or just a regular bank to convert your funds? Before this week I was thinking of converting everything at .95...but now everyone's saying parity is inevitable...gah. For the financial statement you have to provide to get the I-20, do you know if the funds have to be in USD? Link to comment Share on other sites More sharing options...
Dayne67 Posted May 30, 2009 Author Report Share Posted May 30, 2009 token, I submitted bank account statements, which were in Canadian dollars. Wayne said that what i submitted was sufficient for the I-20. Link to comment Share on other sites More sharing options...
silvermen85 Posted May 30, 2009 Report Share Posted May 30, 2009 Now is the time to run out and buy your US dollars for your education in US, look at the foreign exchange rate today. It will go even higher than 91c Link to comment Share on other sites More sharing options...
VanMD Posted May 30, 2009 Report Share Posted May 30, 2009 It will go even higher than 91c I don't know if that is true. With the economy and the deficit thing going on, I would be surprised if it goes up much higher. I bought 10k yesterday and if it goes up to 95 I will get another 10. I don't think it will hit parity. The US economy is starting to get better and confidence will return to the US currency. BUT I hope I am wrong and it does. Link to comment Share on other sites More sharing options...
future_doc Posted May 30, 2009 Report Share Posted May 30, 2009 I don't know if that is true. With the economy and the deficit thing going on, I would be surprised if it goes up much higher. I bought 10k yesterday and if it goes up to 95 I will get another 10. I don't think it will hit parity. The US economy is starting to get better and confidence will return to the US currency. BUT I hope I am wrong and it does. Good judgment VanMD in properly hedging your bets. None of us know the future, especially the forecasters who are not on the money often. Link to comment Share on other sites More sharing options...
Dayne67 Posted May 30, 2009 Author Report Share Posted May 30, 2009 I don't know if that is true. With the economy and the deficit thing going on, I would be surprised if it goes up much higher. I bought 10k yesterday and if it goes up to 95 I will get another 10. I don't think it will hit parity. The US economy is starting to get better and confidence will return to the US currency. BUT I hope I am wrong and it does. Despite the deficit though, the Canadian dollar's rise is being powered by the increase in prices for crude oil and minerals and more importantly, the continuously weakening US economy. Hopefully, the Bank of Canada does not step in to stem the tide if we do reach close to parity. No one can predict the future, but I think that patience is key - at least for now - especially in light of all these forecasts. Link to comment Share on other sites More sharing options...
token Posted May 30, 2009 Report Share Posted May 30, 2009 I was on the more pessimistic side until news of a 50bn deficit came out and the dollar still rose. Yikes. People are really betting against the USD...I don't think we'll see this much economic uncertainty in the US (coupled with their rising deficit and higher commodity prices) again in the next 4 years. So I think it makes sense to change as much as you can before the end of the year...don't know whether to start changing next week or a few months from now though. The moment we start hearing the BoC talk about reining it in I'm going for it, ha Link to comment Share on other sites More sharing options...
DrEvil Posted May 31, 2009 Report Share Posted May 31, 2009 This is a great thread guys. Thanks for all the helpful information!!! Which private companies have the best rates for converting from CDN to USD ?! I hear they are much better than going to the bank. Evil Link to comment Share on other sites More sharing options...
Dayne67 Posted May 31, 2009 Author Report Share Posted May 31, 2009 This is a great thread guys. Thanks for all the helpful information!!! Which private companies have the best rates for converting from CDN to USD ?! I hear they are much better than going to the bank. Evil The most well known is XE. I hear they offer great rates. There are others as well (i.e. Jameson, PeerFX, etc.) There's some pretty good info on companies this thread at redflagdeals.com: http://www.redflagdeals.com/forums/showthread.php?t=732780 Link to comment Share on other sites More sharing options...
VanMD Posted June 2, 2009 Report Share Posted June 2, 2009 I guess it went up a bit today then dropped a bit before closing. I hope it continues to go up this week. I need more for tuition money and living in the US. Link to comment Share on other sites More sharing options...
DrEvil Posted June 2, 2009 Report Share Posted June 2, 2009 Anyone know if there's a way to lock in the current exchange rate for the next four years. I've heard there's a way. Went up a bit today !!! Evil Link to comment Share on other sites More sharing options...
DrEvil Posted June 3, 2009 Report Share Posted June 3, 2009 Looks like the Canadian dollar is falling! Link to comment Share on other sites More sharing options...
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