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What bank did you choose for LOC  

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  1. 1. What bank did you choose for LOC



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How have others been doing with the line of credit hunt for this 2010 cycle?

I just came back from CIBC and the lady offered me barely $80,000 at prime with my fiancee as a co-signer.

 

I'm curious if the 2009 trends at the beginning of this thread is still holding for other banks.

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How have others been doing with the line of credit hunt for this 2010 cycle?

I just came back from CIBC and the lady offered me barely $80,000 at prime with my fiancee as a co-signer.

 

I'm curious if the 2009 trends at the beginning of this thread is still holding for other banks.

 

That lady clearly didn't know the LoCs for medical schools. If you really want to use CIBC ask to speak to anyone service agent or bring a print off from the CIBC website on the medical student LoC

 

http://www.cibc.com/ca/loans/prof-edg-st-pers-ln-credit.html

 

"Medical and dentistry students can apply for up to $150,000"

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  • 1 month later...

I just came back from Scotia and they offered me the same deal that Hercegovka outlined here. Of course prime is now at 2.75%. Very simple, no cosigner required and they said they'd take care of obtaining the proof of enrollment for me. No payments till 12 months after residency, and interest remains at prime. Although they did mention that any existing debt would be taken off the $200k, but I've yet to negotiate about that.

 

Edit: The branch that I visited is close to a med school, but it isn't the same one that I'll be attending. The banker at Scotia said it would be no problem to get my information transferred.

 

CIBC could only offer prime + 1% and required either a cosigner or lots of assets to prove that I can make the interest payments. No option to add the interest to the principal. I had printed out the information from other banks to see if I could convince them to match their terms. The banker there actually told me straight up that MD Financial would be a better deal for me. They mentioned something about a previous bad experience with a med student maxing out their lines of credit and then declaring bankruptcy.

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CIBC could only offer prime + 1% and required either a cosigner or lots of assets to prove that I can make the interest payments. No option to add the interest to the principal. I had printed out the information from other banks to see if I could convince them to match their terms. The banker there actually told me straight up that MD Financial would be a better deal for me. They mentioned something about a previous bad experience with a med student maxing out their lines of credit and then declaring bankruptcy.

 

yeah that is my understanding of that bank as well - they were hurt in the past via med student loans and thus are shy of them now.

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Well, CIBC should simply refuse to make "med student loans" b/c they are uncompetitive and really would be taking advantage of the ignorance of any med student who is not aware of what the competition offers. No knowledgeable med student would want to obtain a LOC from CIBC under these circumstances.

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What bewilders me about Scotia is that they will give you:

 

$200K - (OSAP loans + credit card credit availability + any other LOC's)

 

Sure, I can understand subtracting OSAP and other LOC's, but credit available from credit cards?

 

I'm happy with RBC, $200K with no limits on access, decent credit card (won't be using it much, but it is a good no fee Visa compared to the other banks), and the staff I encountered were VERY respectful and understanding.

 

I've been with Scotia my whole life, but wasn't happy with their treatment of my situation.

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What bewilders me about Scotia is that they will give you:

 

$200K - (OSAP loans + credit card credit availability + any other LOC's)

 

Sure, I can understand subtracting OSAP and other LOC's, but credit available from credit cards?

 

I'm happy with RBC, $200K with no limits on access, decent credit card (won't be using it much, but it is a good no fee Visa compared to the other banks), and the staff I encountered were VERY respectful and understanding.

 

I've been with Scotia my whole life, but wasn't happy with their treatment of my situation.

 

they don't minus the osap loans - which to me is bigger than any credit card stuff (I mean how much do you have on a CC at this point? or need for that matter on one). If they were trying that for you then they were doing something wrong :)

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they don't minus the osap loans - which to me is bigger than any credit card stuff (I mean how much do you have on a CC at this point? or need for that matter on one). If they were trying that for you then they were doing something wrong :)

 

Heh, I guess I was talking to the wrong guy, he was trying to subtract as much as possible on the LOC availability

 

Oh well, I'm happy with RBC, if only MD Financial offered $200K upfront (or $200K by the time you get to residency), I would have probably went with them, but...no sense in thinking of "what ifs"

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Heh, I guess I was talking to the wrong guy, he was trying to subtract as much as possible on the LOC availability

 

Oh well, I'm happy with RBC, if only MD Financial offered $200K upfront (or $200K by the time you get to residency), I would have probably went with them, but...no sense in thinking of "what ifs"

 

Yeah they are all good in the end. Everyone should just make sure they are happy with the bank, get in writing prime rate during school and beyond, and the 200,000 amount now that it seems to be becoming standard. Maybe getting the full amount up front as well although I am still not convinced as to how important that is as with out it I still get 65,000 with LOC and OSAP a year - which better be more than enough :) The rest is minor details.

 

The one thing about RBC that annoyed me was they don't automatically take the money out of the LOC to pay the interest - you have to remember to take it out of the LOC and more it to your chequing account. I hate that - and when busy forgot to do it more than once. I actually set up a third account to help with that in the end although eventually I moved the LOC anyway.

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Just out of curosity, which bank did you finally decide one?

 

It was scotia - at the time it was the only one with 200,000 limit (a few other are now on board), guaranteed prime through residency + fellowship + 12 months after in writing, the interest comes off the loc directly instead of some stupid secondary account, no other bank had anything else that was better and as an added bonus scotia really supports the school (although if they had a worse plan that wouldn't matter as business is business :)). They also have a rep at uwo on campus twice a week at lunch so you can just drop by instead of ever having to go to the bank.

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It was scotia - at the time it was the only one with 200,000 limit (a few other are now on board), guaranteed prime through residency + fellowship + 12 months after in writing, the interest comes off the loc directly instead of some stupid secondary account, no other bank had anything else that was better and as an added bonus scotia really supports the school (although if they had a worse plan that wouldn't matter as business is business :)). They also have a rep at uwo on campus twice a week at lunch so you can just drop by instead of ever having to go to the bank.

 

Ah fair enough. I went with MD Financial. The deal is the same plus I got a sweet credit card & bank card :) Actually the thing with the biggest appeal to me was probably the salaried CMA financial advisor... it's just easier to trust people who aren't making money off you.

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Keep in mind when you enter a residencey program over three years Scotiabank can look at getting a higher LOC ... Also, your rate stays at prime while in residencey, infact until paid in full. Some of the other banks increase your rate. I have residents switch to Scotiabank as a result of the increase. With Scotiabank you receive a no fee credit card, overdraft protection on the unlimited transaction bank account (no fee). The deduction of your credit card limit usually doesn't make a big difference.

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Scotiabankers are salaried as well!!:)

 

Actually this is true - there is a bonus for high performance but nothing tied to making a LOC "sale" etc :) i didn't mention the credit card etc (probably because those things just don't really matter to me :)) but of course you get that as well.

 

One of the great things about this forum is because we can all talk about what we get etc people then approach banks with full knowledge. This forces the banks to compete a lot more and generally improves LOCs over time.

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Those poor med students who are not members and end up with CIBC. :mad:

 

hehehe :) Well at western (and I am sure at other schools) we do advertise the differences again to everyone once here. Our councils do try to make sure no one is ripped off - although ripped off is probably not the right term. CIBC is probably just trying to recover from earlier losses (these LOCs are not huge money makers, if they make anything at all. Getting a bunch of high income people to stay with the bank long term is money making ). Still business is business and we will not be encouraging people to go over a higher rate of course :)

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hehehe :) Well at western (and I am sure at other schools) we do advertise the differences again to everyone once here. Our councils do try to make sure no one is ripped off - although ripped off is probably not the right term. CIBC is probably just trying to

 

Actually, "ripped off" is the accurate desription. And CIBC is better advised staying out of this market, thereby avoiding losing any business they may obtain frokm ignorant med students who would never trust CIBC again, and rightly so.

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Actually, "ripped off" is the accurate desription. And CIBC is better advised staying out of this market, thereby avoiding losing any business they may obtain frokm ignorant med students who would never trust CIBC again, and rightly so.

 

Well, business is business right? Even though I'll probably be leaving them for Scotia at the moment, I wouldn't hesitate to go back in a few years' time if they offer me a good deal on a mortgage or chequing account (through PC Financial), for example.

 

It's true though, why would they bother offering the product if the terms are so much worse than the competition? Maybe what they give to other professional students (law, optometry, pharmacy, nursing, etc) under the same product is actually competitive compared to other banks (RBC for example also gives prime + 1% for them), and medicine/dentistry is just there to round things out?

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