Loc

[xi88]

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.

 

1. RBC seems to approve 150K with no cosigner, that you can access completely right away with a prime interest rate. Many other banks offer similar things, but may have restrictions on how much of the 150K you can access each year, or may require you to have a cosigner. From the posts, it seems that CIBC does not give prime interest rates.

 

I personally have BMO, and I was able to barter my way to the same plan RBC has. I chose BMO because BMO will allow you to access funds as long as you show them your acceptance letter. RBC requires you to be registered and everything first. I needed to access right away because I needed to pay a down payment for a mortgage. Otherwise, I would have gone with RBC.

 

 

2. Very unlikely to lock in a prime rate. At least not now. I would say that it is impossible to lock in at 2.25 since this basically is the lowest possible rate. Usually, if your interest is prime, it is always variable to whatever prime is at the time.

[justletmein]

 

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'm pretty sure this is impossible.

The student in question may have misunderstood.

[golf_squared]

I asked this in another thread, but it probably belongs here (sorry about the cross-post). Does anyone have the contact emails or numbers of the representative they spoke to at RBC and Scotia in the downtown T.O area?

 

Thanks.

[MoSquared]

I asked this in another thread, but it probably belongs here (sorry about the cross-post). Does anyone have the contact emails or numbers of the representative they spoke to at RBC and Scotia in the downtown T.O area?

 

Thanks.

 

I found the link for you:

 

http://www.rbcroyalbank.com/RBC:SkOTMI71A8UATzA8R3U/student/medical/specialists.html

 

You can talk to anyone you want but I suggest using the rep who is going to be closest to your medical school.

 

And although it says prime+1% on the website, they should, and will give you prime....

[golf_squared]

Thanks. I found the scotia one as well.

 

http://scotiabank.com/images/en/filesbusiness/20954.pdf

 

Since I live in Toronto, I guess I will have to go to the "U of T" rep, even though I am going to Queen's. I can't see this making a difference though.

[MoSquared]

Thanks. I found the scotia one as well.

 

http://scotiabank.com/images/en/filesbusiness/20954.pdf

 

Since I live in Toronto, I guess I will have to go to the "U of T" rep, even though I am going to Queen's. I can't see this making a difference though.

 

I live in Toronto too, and going to Queen's. I was up in Kingston looking for a place and decided to talk to Gail at the RBC . She was great! She's been doing LOCs for Queen's med for like 20 years. Everything was done in 20 minutes. She forwarded all the loan documents to a branch near my house for me to sign, so I didn't even have to go back up there.

 

I am sure the UT specialists are just as good, but if you are up in Kingston for any reason stop by a see her, it might be easier in school if you have any questions to be able to go see her at the branch...

[MP10]

I just signed up with RBC. The LOC's not yet approved...but it should go through. I believe I got what everyone else here got. 150 000 @ prime without co-signor, $5000 VISA, etc. Just wasn't sure about a few things.

 

-I declined loan protector insurance for now. The specialist said this was optional, but indicated that most students would take it. Does anyone know if MD Management covers us with something similar?

 

-Did any of you guys get free cheques with the student account. My specialist said that this is usually not possible, but she would try and give me 100 free cheques the first time round. But when processing, she said the option to waive fees was no longer allowed on the system...so I would have to pay for cheques. Is this negotiable??

 

Thanks for any input.

[flying kumquat]

If you're in Ontario, the OMA will provide you with $100k life insurance for free as a medical student. Some other provinces' medical associations are also in on this plan. You don't need to get insurance through Royal Bank. I guess you really don't need to get any insurance, but it's not a bad idea considering it's free.

 

I got free cheques when I initially signed up. When I needed more, I got hassled by the tellers. I managed to speak to someone (at reception, I think? Seemed more customer service-oriented than the tellers) and complained about the cheque replacement fee, considering how much money I was giving them monthly in interest. She got me a bunch of free cheques right away. It definitely seemed like the cheque fee was up to the discretion of certain people.

[MP10]

thanks. the problem is that it isnt free...it costs $0.13 per $1000 that is withdrawn from your LOC, charged monthly I believe

[rmorelan]

If you're in Ontario, the OMA will provide you with $100k life insurance for free as a medical student. Some other provinces' medical associations are also in on this plan. You don't need to get insurance through Royal Bank. I guess you really don't need to get any insurance, but it's not a bad idea considering it's free.

 

Hmmm, sounds good! Do you have to do anything in particular for that? Some sort of registration?

[mandolin]

I have free cheques from MD management.

[flying kumquat]

Hmmm, sounds good! Do you have to do anything in particular for that? Some sort of registration?

 

First, get a CMA/OMA membership for ~$22. Then, contact MD Management. You should be able to sign up at this point (i.e., summer before 1st year), given you have your acceptance and all that jazz. If you can't, there's not really any rush; you can sign up when 1st year starts. There's a short form you have fill out and mail off. It's pretty straightforward.

 

thanks. the problem is that it isnt free...it costs $0.13 per $1000 that is withdrawn from your LOC, charged monthly I believe

 

This is RBC's life insurance on your LOC plan. The OMA plan, which I was describing, is free for the first $100k. You're not required to get insurance from RBC. You don't need any insurance at all, but if it's free and available to you, I don't see how it can hurt.

[Laura_333]

Lots of good posts here! I've narrowed down my choice of banks to BMO and RBC. Talking to the specialists in my area (BC) and I know I can get access to the money with no limits, and both seem very similar. RBC seems to have more dealings with med students and it seems easier to get the loan up to 200,000 in residency. However, BMO has airmiles points when using debit card to pay for tuition, which seems like a perk no one else has. I know RBC has the gold credit card, not sure about what BMO has. Does anyone have any other points or experience to add to sway a decision? Pretty sure either would be fine but i hate to simply flip a coin haha.

[Jochi1543]

Well, BMO told me I would get prime + 0.5% (I tried to get them to lower it, she called, and no luck) AND they limit you to $30,000 a year, then, for whatever reason, let you access the remaining $30,000 in PGY-1 and 2 - why, I don't know, I'd rather have credit when I'm in school than when I'm getting paid. Anyway, even the interest rate alone was enough to keep me away from BMO, even though they are my primary bank.

 

I went with MD Management, btw.

[Laura_333]

Hmm that's really weird. In BC they said if I really wanted I could have access right away and that interest was at prime. That is one thing though that has made me slightly nervous of BMO is that they seem to not have a standardized program because it is fairly new. Were you talking to a medical student specialist at your branch?

[Jochi1543]

Hmm that's really weird. In BC they said if I really wanted I could have access right away and that interest was at prime. That is one thing though that has made me slightly nervous of BMO is that they seem to not have a standardized program because it is fairly new. Were you talking to a medical student specialist at your branch?

 

Yeah, from what I understood, she was the one responsible for med students in Edmonton.

 

If they tell you that it's at prime and you can access right away, then go for it, just make sure you pay close attention to everything in the contract.

[Halcyon]

150k LoC at prime, with 37.5k released every year at RBC.

 

Just a question about student loan repayments - are they not tax deductibles or did I just make that up?

 

You are probably thinking about OSAP?

 

I've got a regular, undergrad student LOC and I've never been able to use the interest charged for tax purposes.

 

Unless this has changed....?

[Version 2]

I had it narrowed down to 3: RBC, Scotia, and TD.

 

TD eliminated themselves by not living up to the basic conditions most loans have. Their rate was a full percent higher (3.5%) and they were not willing to match other banks. Before anyone makes suggestions, yes, I did speak with a student professional loan specialist and yes, I made extra sure that this was actually the case. I don't know if TD reads these forums, but you may wish to look into your Calgary branch. They are losing you business.

 

RBC had a terrible system. Instead of being able to phone an individual branch they made me go through a head office somewhere in Eastern Canada, and that service rep phoned branches on my behalf. That was f*ed up. Even if you could get a hold of the branch you wanted (which I eventually did), the supposed "expert" in student professional loans had no idea what the conditions were and was reading them out of their own brochure. I can do that on my own. The conditions were the same as other banks but my experience with them left me stunned at how bad their bureaucracy was.

 

With Scotia there was no long story. Their conditions were as good if not better than anywhere else and the best customer service by far of all the places I checked. No question for me.

 

So, that was my experience with bank shopping. Maybe it's a little different depending on where you live, but I was not impressed with most places in Calgary. There are other banks I haven't mentioned, but I figured I'd mention the three most common I see on the forums rather than write even more of a novel than I already have.

[Laura_333]

It really seems dependent on where you live what the banks offer and how well the service is. Your experience with RBC reading off a page, was similar to what I experienced with Scotia in BC. It seems like it is best to get advice on banks from people in your local area.

[Jochi1543]

So, that was my experience with bank shopping. Maybe it's a little different depending on where you live, but I was not impressed with most places in Calgary. There are other banks I haven't mentioned, but I figured I'd mention the three most common I see on the forums rather than write even more of a novel than I already have.

 

Why don't you just go with MD Management? The initial set-up does require you to speak with someone in ON on the phone, but then once you decide to go ahead and apply, they hook you up with someone in your area (although you can continue dealing with the ON person, if you prefer). My guy in Edmonton is a 10-min walk from my house and seemed pretty competent. Plus he had one of my favorite posters in his office (http://ricomoss.files.wordpress.com/2009/01/retards_we_all_know_one.jpg).

[Laura_333]

Doesn't MD management only give you so much per year?

[mandolin]

They tailor it to your needs so you don't wind up out of money in your final year from overspending at first. It seems like they don't have any hard and fast rules - they work with your financial picture to figure out what you need.

 

The MD Management guy for the west is great. And the service at their Edmonton office was fast and good. The Calgary rep will even come on campus and meet with you.

[Sundance]

I just got off the phone with a representative from BMO in Edmonton and was told the same thing as Jochi: prime + 0.5%. She did, however, mention that I might be able to access more money (ie, > $30,000) in the first year in order to settle up with another institution. Still, the interest rate makes me think nay.

 

Jochi, if you don't mind me asking, did you sign up with MDM fairly recently? I was told the switch in interest rates happened in June, so I wonder if MDM still offers prime? I suppose a phone call would tell me what I need to know, too...

 

Edit: I have since been contacted by the representative from BMO saying that they will be able to offer me prime + 0% after all.

[Version 2]

Why don't you just go with MD Management? The initial set-up does require you to speak with someone in ON on the phone, but then once you decide to go ahead and apply, they hook you up with someone in your area (although you can continue dealing with the ON person, if you prefer). My guy in Edmonton is a 10-min walk from my house and seemed pretty competent. Plus he had one of my favorite posters in his office (http://ricomoss.files.wordpress.com/2009/01/retards_we_all_know_one.jpg).

 

I did consider that. It was fairly appealing I must admit, but I've got a good standing history with Scotiabank and it was really easy to set up and arrange my banking that way. I also have a few connections there, which makes the service a little better than the average person walking off the street would probably get. I hate to abuse that, but that's life sometimes.

 

Also bear in mind I only mentioned the best and worst. All the rest weren't exciting enough to mention. MD financial is a solid choice, and other circumstances excluded may have been my preference.

[flamesfan]

I think I am going with TD. I have been there for a few years and I also have a waterhouse account with them. My banker there had no idea about the LOC but when I met he had researched and pulled up all the details.

 

I havent signed but he said

 

-prime (need to clarify this is for life)

-150 000 although disbursed in yearly amounts (could get more but then I have to go in or something - good to know in case)

-payment must begin 1 year post residency

-10 free drafts per year

-unlimited chequing account

-cheap currency conversion

-TD Gold Card but trying to get Infinite

 

maybe some other perks I cant remember now but ill edit if i remember