Kines. Posted June 17, 2009 Report Share Posted June 17, 2009 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? I just completed getting my LOC from National Bank of Canada through the CMA (i.e. MD Financial). I was also approved by RBC but chose National Bank instead. Both had identical things to offer except NBC limits how much you can take out each year. I didn't think this was a big deal. What sold me on NBC was that my representative from CMA created a debt projection spreadsheet with me based on anticipated income and costs that I will incur during school, which is helping me plan my budget well. He is (apparently) knowledgeable in the needs of med students, and once residency hits I'll have a new rep that knows about residency-related financial issues. I'm not sure how much I'll need to utilize them (if at all) but it made me feel comfortable working with them. Also, they offer debt counseling later on as well as asset management and investment strategies for physicians (as they say - for physicians by physicians). Plus their LOC acts as a checking account so I can write checks directly from it and use Interac from the account as well. Link to comment Share on other sites More sharing options...
xi88 Posted June 17, 2009 Report Share Posted June 17, 2009 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? Banks borrow money at the bank of Canada overnight rate, which is currently at 0.25%. The charge us interest at prime (2.25%). They make money. Prime rate is always higher than the government overnight rate, so banks always make money from lending money to consumers. Link to comment Share on other sites More sharing options...
MoSquared Posted June 17, 2009 Report Share Posted June 17, 2009 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. My RBC specialist told me that my rate would stay at prime forever, well until I pay it off.... Link to comment Share on other sites More sharing options...
rmorelan Posted June 17, 2009 Report Share Posted June 17, 2009 My RBC specialist told me that my rate would stay at prime forever, well until I pay it off.... When has everyone in the past gotten access to thier LOC? I am trying to figure out the best way to pay for the down payment on something here, and the LOC rate is cheaper than a mortgage rate. Link to comment Share on other sites More sharing options...
xi88 Posted June 17, 2009 Report Share Posted June 17, 2009 When has everyone in the past gotten access to thier LOC? I am trying to figure out the best way to pay for the down payment on something here, and the LOC rate is cheaper than a mortgage rate. I got access 2 days after I went in to apply for it...which was over 2 weeks ago. Just had to show them my acceptance letter. (BMO) Link to comment Share on other sites More sharing options...
rmorelan Posted June 17, 2009 Report Share Posted June 17, 2009 I got access 2 days after I went in to apply for it...which was over 2 weeks ago. Just had to show them my acceptance letter. (BMO) good to know Link to comment Share on other sites More sharing options...
The_B Posted June 17, 2009 Report Share Posted June 17, 2009 I just completed getting my LOC from National Bank of Canada through the CMA (i.e. MD Financial). I was also approved by RBC but chose National Bank instead. Both had identical things to offer except NBC limits how much you can take out each year. I didn't think this was a big deal. What sold me on NBC was that my representative from CMA created a debt projection spreadsheet with me based on anticipated income and costs that I will incur during school, which is helping me plan my budget well. He is (apparently) knowledgeable in the needs of med students, and once residency hits I'll have a new rep that knows about residency-related financial issues. I'm not sure how much I'll need to utilize them (if at all) but it made me feel comfortable working with them. Also, they offer debt counseling later on as well as asset management and investment strategies for physicians (as they say - for physicians by physicians). Plus their LOC acts as a checking account so I can write checks directly from it and use Interac from the account as well. I have NBC as well, and I am really happy with them, but I thought I would correct one thing you said here. MD financial will provide all of the services you listed no matter who (or even if) you bank with for your LOC. Link to comment Share on other sites More sharing options...
Jochi1543 Posted June 17, 2009 Report Share Posted June 17, 2009 I have NBC as well, and I am really happy with them, but I thought I would correct one thing you said here. MD financial will provide all of the services you listed no matter who (or even if) you bank with for your LOC. Yeah, and I definitely saved that spreadsheet even though I don't plan on going with MD Financial for my LOC. The things that turned me off from MD Financial were 1) yearly limits 2) difficulty finding banks/ATMs. There's only 1 NBC branch in Edmonton, I think. He said I could deal with a bunch of credit unions they have agreements with, but credit union braches also tend to be scarce. Link to comment Share on other sites More sharing options...
The_B Posted June 17, 2009 Report Share Posted June 17, 2009 Yeah, and I definitely saved that spreadsheet even though I don't plan on going with MD Financial for my LOC. The things that turned me off from MD Financial were 1) yearly limits 2) difficulty finding banks/ATMs. There's only 1 NBC branch in Edmonton, I think. He said I could deal with a bunch of credit unions they have agreements with, but credit union braches also tend to be scarce. 1) It isn't MD financial, it is National Bank. They negotiate the deal with them, and all the other banks follow suit, but they are not connected otherwise. 2) You are part of the exchange network, which for me, is easier to find than even RBC http://www.the-exchange.ca/ in either case, you can't go wrong. I just went with the first one that presented itself and was convenient. Basically, the key for anyone considering an LOC, a few basic rules. Most of the big banks all play by them. 1) Prime interest rate. Anything more is a deal breaker and unacceptable. 2) Grace period post residency. You don't get a cheque right away, therefore shouldn't have to pay right away. 3) No fees (including cheques). Link to comment Share on other sites More sharing options...
biogirl Posted June 18, 2009 Report Share Posted June 18, 2009 Has anyone from Ontario gotten a LOC with BMO at prime? Last week someone on the phone from BMO told me prime and now they are saying prime + 1%... Link to comment Share on other sites More sharing options...
Jochi1543 Posted June 18, 2009 Report Share Posted June 18, 2009 Has anyone from Ontario gotten a LOC with BMO at prime? Last week someone on the phone from BMO told me prime and now they are saying prime + 1%... Go talk to them in person. The cretin I talked to on the phone at the 1-800 # (which is where they direct you if you try to call a branch) told me every med student LOC needed a cosigner, regardless of credit history - contrary to the fact that multiple people here have obtained a LOC without one. I think they are pretty clueless at the call centre when it comes to med student LOCs (which would be ok if they didn't insist they were right). Link to comment Share on other sites More sharing options...
rmorelan Posted June 18, 2009 Report Share Posted June 18, 2009 Go talk to them in person. The cretin I talked to on the phone at the 1-800 # (which is where they direct you if you try to call a branch) told me every med student LOC needed a cosigner, regardless of credit history - contrary to the fact that multiple people here have obtained a LOC without one. I think they are pretty clueless at the call centre when it comes to med student LOCs (which would be ok if they didn't insist they were right). yeah, most of people you call are unfortunately inexperienced in med LOC. Heck even at the bank you get that - I just came from TD and they tried (again) to give me the standard student line of credit (10,000 total). Not exactly what I was looking for Link to comment Share on other sites More sharing options...
biogirl Posted June 18, 2009 Report Share Posted June 18, 2009 I did have an in person meeting and the lady I met with at BMO told me it's prime + 0.5% and it is going up July 1st to prime + 1% and she said I most definitely need a cosigner. Should I just go to RBC? Link to comment Share on other sites More sharing options...
rmorelan Posted June 18, 2009 Report Share Posted June 18, 2009 I did have an in person meeting and the lady I met with at BMO told me it's prime + 0.5% and it is going up July 1st to prime + 1% and she said I most definitely need a cosigner. Should I just go to RBC? Go somewhere else. Never take anything higher than prime. Period Link to comment Share on other sites More sharing options...
hkmedbound Posted June 20, 2009 Report Share Posted June 20, 2009 Why is there an overwhelming majority of people going with RBC? Link to comment Share on other sites More sharing options...
xi88 Posted June 20, 2009 Report Share Posted June 20, 2009 Why is there an overwhelming majority of people going with RBC? because they seem to have the best deal...although I bartered the same deal out of BMO;) . Link to comment Share on other sites More sharing options...
Deanis Posted June 20, 2009 Report Share Posted June 20, 2009 All the "deals" seem to be roughly the same (what advantages does RBC really have over other banks?). I think it's more likely that RBC is, by far, the biggest bank. Link to comment Share on other sites More sharing options...
Hckyplyr Posted June 20, 2009 Report Share Posted June 20, 2009 I went to MD financial to sign all the papers and everything the other day, and one thing that concerned me was that i was only applying for the 50,000 that is available for first year, and then before second year I have to reapply for the additional amount available, and same for third and fourth year....is this the way all locs work? Link to comment Share on other sites More sharing options...
Jochi1543 Posted June 20, 2009 Report Share Posted June 20, 2009 I went to MD financial to sign all the papers and everything the other day, and one thing that concerned me was that i was only applying for the 50,000 that is available for first year, and then before second year I have to reapply for the additional amount available, and same for third and fourth year....is this the way all locs work? Really? They never told me anything like that on the phone. Sounds kinda shady. Link to comment Share on other sites More sharing options...
rmorelan Posted June 20, 2009 Report Share Posted June 20, 2009 I went to MD financial to sign all the papers and everything the other day, and one thing that concerned me was that i was only applying for the 50,000 that is available for first year, and then before second year I have to reapply for the additional amount available, and same for third and fourth year....is this the way all locs work? Hasn't been for the places I have looked at - that seems very odd to me. Link to comment Share on other sites More sharing options...
flying kumquat Posted June 20, 2009 Report Share Posted June 20, 2009 I went to MD financial to sign all the papers and everything the other day, and one thing that concerned me was that i was only applying for the 50,000 that is available for first year, and then before second year I have to reapply for the additional amount available, and same for third and fourth year....is this the way all locs work? IIRC, this is what I had to do with RBC. I only signed up for $30k in the first year for budgeting purposes. I had to apply at the end of first year for more money. Because I found having to go in each year a pain, I just got them to approve me for the whole $150k with no issues. As for applying for the additional money, it seemed to me that it was a given that I would be approved. I think you would have to screw up really badly before they wouldn't approve you for more, but I don't know what situation would cause that. Link to comment Share on other sites More sharing options...
mandolin Posted June 22, 2009 Report Share Posted June 22, 2009 IIRC, reapplying with MD Financial involves faxing a letter saying that you are currently a student in good standing with the med school. Link to comment Share on other sites More sharing options...
Kines. Posted June 22, 2009 Report Share Posted June 22, 2009 IIRC, reapplying with MD Financial involves faxing a letter saying that you are currently a student in good standing with the med school. Yes. My info from MD Financial's rep was that you can choose to increase your limit each year (i.e. I have 50,000 this first year and can choose to get an additional 40K next, then 30, 30), or if I don't need it, or don't need the maximum, I need not increase my LOC. If I do need to, I just need to prove I'm still a med student with a faxed letter, which the UGME is ready to provide at all schools. I was told they do this so they can help you keep tabs on/control how much you spend each year. Link to comment Share on other sites More sharing options...
golf_squared Posted June 23, 2009 Report Share Posted June 23, 2009 So after reading through this entire thread, I am still not clear on two things: 1) Most people seem to go with RBC, because they apparently have the best "deal". Can someone clarify what this deal is versus what is typically offered? 2) When someone gets "prime for life", does this mean you always get the ever-changing prime rate, or can you lock into the current prime. I have heard from one current med student that she was able to lock into the current rate, but I am not sure about this. Has anyone else managed to get this? Thanks for the help. Link to comment Share on other sites More sharing options...
Jochi1543 Posted June 23, 2009 Report Share Posted June 23, 2009 So after reading through this entire thread, I am still not clear on two things: 1) Most people seem to go with RBC, because they apparently have the best "deal". Can someone clarify what this deal is versus what is typically offered? 2) When someone gets "prime for life", does this mean you always get the ever-changing prime rate, or can you lock into the current prime. I have heard from one current med student that she was able to lock into the current rate, but I am not sure about this. Has anyone else managed to get this? Thanks for the help. I can't fathom being able to lock into the current prime, given that it's like the lowest possible prime ever. At the time she locked in, prime must've been quite a bit higher so the bank anticipated to make more $ off of her once the prime dropped. Link to comment Share on other sites More sharing options...
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