Loc

[FABS]

Hi everyone!

 

thanks for all the helpful advice. Here are my most recent experiences:

 

BMO

-Spoke with representatives in East (ON) and West (BC) and they recently moved to Prime + ...so DONT GO WITH THEM unless they offer you at prime with a guarantee in writing.

-Airmiles only works for debit transactions where you are in person swiping your card and not for online/phone banking or cheques....can u pay tuition by debit?

 

TD:

-required a cosigner...no thanks

 

Scotia:

-great deal as most ppl have already pointed out, BUT required me to cancel any credit cards I had with other banks and pay out my BC student loan from my line of credit even though its a gov loan and interest free till I graduate

 

MD Financial/National Bank

-looks great, met all the above expectations everyone has outlined, even offers a points credit card and waives fee for two years

-does limit your amount per year, but can be increased with request

 

I chose MD Financial, I found they had the best service and were really pulling for me

[macmed12]

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.

 

yup, they were very co-operative too. lol talk about confusing

[waterluv]

I went with TD because I've been using TD forever but it took them over a month to approve me <150K and I have to pay back 1 yr post med school. Now I am not so sure that I want to stay with TD.

[Jochi1543]

I went with TD because I've been using TD forever but it took them over a month to approve me <150K and I have to pay back 1 yr post med school. Now I am not so sure that I want to stay with TD.

 

Ummm, definitely not, lol.

[rmorelan]

I went with TD because I've been using TD forever but it took them over a month to approve me <150K and I have to pay back 1 yr post med school. Now I am not so sure that I want to stay with TD.

 

Yeah, that would be a negative - if they aren't showing you the respect, then they shouldn't get your business

[future_doc]

I went with TD because I've been using TD forever but it took them over a month to approve me <150K and I have to pay back 1 yr post med school. Now I am not so sure that I want to stay with TD.

 

And you should! They need your business, you certainly don't need them.

[waterluv]

Just to update, I talked to Scocia rep that comes to school and everything was done surprisingly quick. I guess I'm not used to fast service..or anything fast at all.

NOW I can think about buying 600$+ equipments. Probably won't, but I like the option of being able to buy stuffs yet choosing not buy them.

[future_doc]

Great! Sounds very professional and to the point.

[paks54]

You can get a LOC for $200,000.00 for the four years ~ $50,000.00 each year. With the LOC you get an unlimited chequing account, Visa Card no fee, Overdraft on your chequing account.

The rate is PRIME flat. Once you are completed your studies the rate STAYS at prime flat until the loan is paid off. ( someone said it went to Prime plus 1 1/2% not true... i work for Scotiabank and I called our head office to confirm just incase I missed an internal writing but NO it remains at PRIME) If you go into a specailty program over three years you can get a higher limit on your LOC.

 

I am in Vancouver and if you want you can contact me at

 

pat.scrase@scotiabank.com

 

I can also refer you to other Scotiabank experts in our student LOC across Canada.

[lostintime]

Just wondering, if we suddenly die, what happens to our LOC? I didn't have a co-signer....are my parents liable for it?

[Jochi1543]

Just wondering, if we suddenly die, what happens to our LOC? I didn't have a co-signer....are my parents liable for it?

 

No, they would only be liable if they cosigned. I believe they can use your estate (whatever kind of estate a med student has....a couple of old USB keys?) to pay the debt, but no one is liable for the rest, altho banks will try and make you think they would be.

[paks54]

You can get your LOC insured with loss of life, it is not a requirement of the LOC. If you don't have life insurance the LOC is attached to your estate, what ever is in your estate goes to firstly to pay down government monies owing ie income tax, then the bank would fall next in line. I recommend life insurance if you are married and with or with out children. One thing you should consider is disabilty insurance (DI), if you are injured you still have to pay the interest monthly on the LOC. One of my second year students got poked with a needle and ended up with hep C, her DI covered her payments while she was off sick and gave her money to live off. Keep in mind the younger you are the cheaper the insurance and the more likely you are to get it.

[rmorelan]

No, they would only be liable if they cosigned. I believe they can use your estate (whatever kind of estate a med student has....a couple of old USB keys?) to pay the debt, but no one is liable for the rest, altho banks will try and make you think they would be.

 

That's my understanding as well - your parents are not responsible for your debts in any way once you are an adult.

 

However since your estate would not have a positive value with debt considered, your funeral arrangments would be something that will have to be paid in some other way.

[Jochi1543]

That's my understanding as well - your parents are not responsible for your debts in any way once you are an adult.

 

However since your estate would not have a positive value with debt considered, your funeral arrangments would be something that will have to be paid in some other way.

 

Just bury my heart at Wounded Knee.

[astudentis]

That's my understanding as well - your parents are not responsible for your debts in any way once you are an adult.

 

However since your estate would not have a positive value with debt considered, your funeral arrangments would be something that will have to be paid in some other way.

 

Say we get that free life insurance from OMA, do we not have to put the bank as the beneficiary (even if there is no cosigner)? Can we just say another person can get the $$?

[Jochi1543]

Say we get that free life insurance from OMA, do we not have to put the bank as the beneficiary (even if there is no cosigner)? Can we just say another person can get the $$?

 

OMG, don't put the bank as a beneficiary....why would you!? Put someone else. If you still owe $ to the bank when you die, the bank will file for their part of that life insurance. If you make the bank the beneficiary, they will get the entire amount.

[future_doc]

Say we get that free life insurance from OMA, do we not have to put the bank as the beneficiary (even if there is no cosigner)? Can we just say another person can get the $$?

 

Presumably, you would put your Estate as beneficiary. Make a Will, even one written out in your own handwriting date and declared to bw your last will and testament. It requires no witnesses but must be completely in your handwriting. You appoint an Executor, someone you trust and name to whom you wish to leave all your assets. So, your Estate would be able to pay off the bank andwhatever is left, after fineral expenses, will go theloved one you select. If this person is an adult, presumably you will name this person as your sole executor, so that this person remains in total control, e.g., this person will appoint the lawyer to probate the Will , etc. and will be required to sign all documents so will know what is going on. You also save on potentially expensive executor fees.

[Laika]

If you still owe $ to the bank when you die, the bank will file for their part of that life insurance.

 

If the life insurance was not used as a collateral assignment for the LOC (which it is not, in the case of med student LOCs), then the bank has no right to claim any of it, assuming the beneficiary is not the estate (see below).

 

Presumably, you would put your Estate as beneficiary.

 

Do not do this unless you are aware of all of the potential implications. I highly recommend listing the beneficiary as an individual (e.g., your kids, parents or siblings), not your estate. For example, for the average med student, listing the estate as the beneficiary would (a) force the insurance proceeds to be used to pay down the LOC and ( require probate for the estate, a costly and time consuming process. As well, should the person die intestate (a very real possibility for a med student), there is no guarantee the insurance will be distributed as you wish. I believe OMA insurance reps can offer advice about this type of thing.

[future_doc]

If the life insurance was not used as a collateral assignment for the LOC (which it is not, in the case of med student LOCs), then the bank has no right to claim any of it, assuming the beneficiary is not the estate (see below).

 

 

 

Do not do this unless you are aware of all of the potential implications. I highly recommend listing the beneficiary as an individual (e.g., your kids, parents or siblings), not your estate. For example, for the average med student, listing the estate as the beneficiary would (a) force the insurance proceeds to be used to pay down the LOC and ( require probate for the estate, a costly and time consuming process. As well, should the person die intestate (a very real possibility for a med student), there is no guarantee the insurance will be distributed as you wish. I believe OMA insurance reps can offer advice about this type of thing.

 

There are ethical, moral and legal implications. Morally and ethically, if I were to die, I would want to pay off the bank and making the Estate the beneficiary guarantees this will happen, yes, there will be the cost of probate which is just the way things go. And you cannot die intestate when you make the Will, on the contrary, you are guaranteeing that your debts will be paid. By leaving the monies directly to a family member, you are guaranteeing that there will be no certainty, as you leaving it for others to decide whether or not your debts will be paid. Human natue is such that it won't. As a matter of honour, legalities aside, it should be paid in my view, and the Will ensures exactly this.

[Laika]

There are ethical, moral and legal implications.

 

There are also financial implications. When the bank gives you an unsecured LOC for $200K, they are fully prepared to accept the loss if the occasional med student dies. If you prefer the bank, gov't, and lawyers receive funds instead of your family, that's certainly your choice.

[live101]

Before getting an LOC, do they do anything to you to check your health status? In other words, do insurance companies and such make you do a physical and blood tests?

[paks54]

Should you apply for the LOC you don't have to take life insurance, you can apply if you wish. Should you decide to get insurance of any kind from our bank you will be required to complete a health questionaire. If you respond no to all questions you will be insured for the LOC. If reply yes to any of the questions you will be required to take a blood test. I do believe insurance obtained from a broker will also require you to take a blood test.

[live101]

If I already have life insurance, does my LOC get covered under that even though I get the LOC after I got the insurance?

[paks54]

It depends on what type of insurance you have. Again, you don't need to have insurance as a condition of the LOC. You are wise to have it just in case something happens to you. You are weclome to call me @ 604-619-4699., so I can better understand what type of insurance you have

[Laika]

do insurance companies and such make you do a physical and blood tests?

 

The life and disability insurance sold by the OMA to med students don't require a physical or blood tests. I'm not sure about insurance sold by med associations in other provinces.