Loc

[Laura_333]

Hello everyone,

 

I've spent a lot of time reading the LOC info in this forum and overall it has been very helpful. I'm just curious about what banks people ultimately chose to bank with and why. Overall it seems standard to get about $150,000 at prime. I'm curious what was the tipping factor to choosing the bank for your LOC (perks, airmiles, service, etc).

 

If you are comfortable perhaps say your interest rates, amount of LOC, and perks you were able to get. To be honest I'm dreading going to all the banks and having to 'negotiate' a fair LOC. I already talked to one bank (CIBC) who offered prime + 1% and I was annoyed b/c I don't want to have to ask for prime, I think it should be offered initially when so many banks are offering it!

 

Thanks!

 

Oh, and I forgot to put in MD financial...I guess that can be 'other'

[xi88]

BMO. prime. 50000 the first year, and then 100000 added on the second year totalling 150000. Only pay interest until a year after residency. No co-signer.

[Guest rpuff]

RBC and TD offer LOC @ prime (2.25%). you should never have to negotiate that as a med student.

 

Co-signers were previously not necessary but with today's market a lot of banks require one, even for med students.

[DrDo]

Are most of these banks offering prime that is floating or fixed at 2.25 until after a year completing residency?

[shaolin_28]

All of my previous banking and line of credits had been with CIBC. From the info on their website, i had to phone telephone banking to find more information. The guy told me prime + 2-3% depending on my credit score. I asked if he was serious, and repeated it was for a medical school line of credit, and shouldn't they be giving prime plus 0. They also wanted a co-signer...I then phoned scotiabank's medical school rep for McMaster, and I was able to quickly do an application (I use them for my mortgage) and it was easy. Prime plus zero, interest capitalizes monthly so you don't have to take money out each month on your LOC to pay the interest on your LOC if you don't want to. Overall, i've been very impressed with the service. It's a shame that CIBC essentially lost my business of 25 years...oh well.

[RobynM]

I think the most important thing is to go to the branch of whichever bank that is closest to campus. The people working in these branches are going to be the most familiar with the med student banking package that the bank offers and they will be able to give you the correct info. Luckily my home RBC branch is the one near campus, I walked in, told them I was going to med school and they basically fell all over themselves to get me all set up with all their services. I got a $150,000 LOC at prime + 0% with no co-signer. There is no yearly limit to how much I can take out either so I could take it all out right now if I wanted!

 

I think all the banks offer something similar, you just need to make sure you're talking to people that are well versed in the program and you're going to find them at the branches near campus usually.

[NL_bioc]

I went with Scotia. Unlimited chequing account, free overdraft, LOC at prime forever, free LOC cheques, $5000 cash-back visa, and a med student specialist in my area. Plus if you do any traveling you can use a lot of overseas ATMs with NO fees.

 

In terms of the other banks these are my experiences:

 

RBC: I was ready to sign up with RBC but two things turned me off. a) They told me that RBC will only guarantee prime until the completion of residency. At that point it it depends on your credit rating and if you have any other products (e.g. mortgage) with RBC. Every other bank I spoke with told me that it goes in writing that your interest remains at prime forever. You need to manually transfer LOC funds to your chequing account every month. Seemed like a hassle to me.

 

BMO: I didn't go with BMO because they seemed to nickle and dime you a lot and I don't like that. If you check your account balance, that's considered a transaction. No other bank does that from what I can tell. Plus there was no med specialist in my area.

 

TD: They did not have a medical student specialist in my province. The person who I spoke with didn't even know TD had a medical student LOC and initially told me I could only get $30 000 at prime +2% with a cosigner.

 

CIBC: I didn't even bother to approach them based on how many negative things I've heard.

[aRnonymous]

I went with RBC. They gave me 150k to use however I want (no limits per year) at prime

[mimi21]

Thanks for info,

This will make it easier for me....

[biogirl]

All of my previous banking and line of credits had been with CIBC. From the info on their website, i had to phone telephone banking to find more information. The guy told me prime + 2-3% depending on my credit score. I asked if he was serious, and repeated it was for a medical school line of credit, and shouldn't they be giving prime plus 0. They also wanted a co-signer...I then phoned scotiabank's medical school rep for McMaster, and I was able to quickly do an application (I use them for my mortgage) and it was easy. Prime plus zero, interest capitalizes monthly so you don't have to take money out each month on your LOC to pay the interest on your LOC if you don't want to. Overall, i've been very impressed with the service. It's a shame that CIBC essentially lost my business of 25 years...oh well.

 

I've also always dealt with CIBC but it doesn't look like they are going to get my business in the future. I was told prime + 1%... I'm going to try talking to one more person at CIBC... and if nothing changes I'm moving to another bank.

[justletmein]

I've also always dealt with CIBC but it doesn't look like they are going to get my business in the future. I was told prime + 1%... I'm going to try talking to one more person at CIBC... and if nothing changes I'm moving to another bank.

 

Speak to a manager or try filtering through their website for a contact.

 

You should not accept higher than prime, but at the same time, it's a pain in the butt to change banks.

[Jochi1543]

Speak to a manager or try filtering through their website for a contact.

 

You should not accept higher than prime, but at the same time, it's a pain in the butt to change banks.

 

You can get perks for switching, though. E.g. when I was at RBC a few weeks ago, they told me that they give you 1500 points for switching (forgot what their points are called, but it's like Airmiles or Aeroplan), which is enough for a short-haul flight. I don't know if that promo's still on, though.

[whale.of.a.time]

I liked RBC also. Friendlier and more helpful than TD or Scotia (the only other 2 I talked to), and seemed to really know about the med student plans. No tip-toeing around the prime +1 bull. They were very straightforward.

 

I got $150000 (can take out as much/year as I need), at prime + 0%, interest only until after residency. They also boosted my credit card up to over $7000 limit, so that I could pay tuition on it and get the points.

 

Perks: some free money orders, unlimited transactions, that kind of stuff.

[Jochi1543]

I personally would recommend going with any bank that does NOT limit your yearly withdrawals, because you never know when something bad might happen. Sure, $30,000/yr is a good amount when things are going well, but if, say, your upstairs neighbor's apartment burns down and the fire department floods yours into oblivion as the result and every single thing you own is moldy or disintegrated (as you can tell, I've gone through this ), you'll sure be glad you don't have a limit on your withdrawals. If you are honestly afraid that you wouldn't be able to control yourself when it comes to managing your money, especially if you're just out of undergrad and it's your first time living on your own, just get your parents involved and have them withdraw the $ and send it to you so you don't go overboard.

[whale.of.a.time]

Also, at RBC at least, you can decide on a yearly amount to help you budget...but if you need more it's just a phone call to the LOC rep and she will increase your annual amount. So I am starting with $30 000 per year, but if a Jochi-fire-situation arises, I can get more at any time.

 

If you are honestly afraid that you wouldn't be able to control yourself when it comes to managing your money, especially if you're just out of undergrad and it's your first time living on your own, just get your parents involved and have them withdraw the $ and send it to you so you don't go overboard.

[Imhotep]

Jochi,

 

You get the points even if you don't switch - all you need is a banker that cares enough to help you. These bonus points are available for every consumer, whether long time or new.

[three6teen]

I was just approved for a Scotia professional student line of credit. prime (2.25%) NO PAYMENTS until 1 year after residency (interest is added to the LOC). 150000 across 5 years (37500 each year) No cosigner. Free banking and free goldcard. Great deal for me IMHO

[youngdad]

Hmm. My LOC at TD was all ready to go and then was declined just now. They are telling me Med and Dental LOCs need cosigners. Guess I will be banking elsewhere.

[youngdad]

My credit rating is good. She told me it was standard procedure since income is not guaranteed during my school year. I said "who works during med school?" She said she didn't know. I said "what do your other clients on this LOC plan do?" she said she didn't have any. I wonder why.

So, some other bank gets my interest money.

[whale.of.a.time]

Ridiculous!

 

Definitely go with a bank that is used to this sort of thing.

 

My credit rating is good. She told me it was standard procedure since income is not guaranteed during my school year. I said "who works during med school?" She said she didn't know. I said "what do your other clients on this LOC plan do?" she said she didn't have any. I wonder why.

So, some other bank gets my interest money.

[shredthegnar]

Hey, I was wondering if anyone has signed up with National Bank (through the CMA/OMA), and if so how they feel about it? I haven't seen any posts related to that LOC?

[rmorelan]

Hmm. My LOC at TD was all ready to go and then was declined just now. They are telling me Med and Dental LOCs need cosigners. Guess I will be banking elsewhere.

 

gah! that isn't good. I also pre-cleared it, wonder if they will do something similar now.

 

Oh well, if they do there are more banks out there

[justletmein]

Go to RBC I got my LOC without a cosignor and had access to the $$ without any limits in 24 hrs.

 

No hassles.

[youngdad]

Had an appointment with an RBC rep today and everything looks squeeky clean so far. The guy was super helpful. He said I should be able to buy my new computer before the week is out!

 

Interesting thing about these accounts is that the banks don't make any money off them. Apparently they eat a loss in the hopes that they earn the loyalty of professionals such as a doctors, lawyers or dentists and further investments make money for them.

 

Or, so I have been told by a loan account manager. Can anyone confirm?

[justletmein]

Had an appointment with an RBC rep today and everything looks squeeky clean so far. The guy was super helpful. He said I should be able to buy my new computer before the week is out!

 

Interesting thing about these accounts is that the banks don't make any money off them. Apparently they eat a loss in the hopes that they earn the loyalty of professionals such as a doctors, lawyers or dentists and further investments make money for them.

 

Or, so I have been told by a loan account manager. Can anyone confirm?

 

They offer prime in the hopes of gaining your business.

 

But I dont see how they can possibly lose money. They are still being paid interest on every dollar you spend. Prime rate is low but it is still higher than the rate banks pay to borrow money which means they are taking a profit.

 

Bottom line = banks make a cut off EVERYTHING.