paks54 Posted November 5, 2009 Report Share Posted November 5, 2009 Hi Everyone, I am the BC professional loan expert for Scotiabank. We are very pleased to announce we have a new authorized LOC limit for Medical and Dental students. Our rate is Prime, follows you into residency and remains so until your LOC is paid off. I can get you other province expert names ... just ask Patty Link to comment Share on other sites More sharing options...
leviathan Posted November 5, 2009 Report Share Posted November 5, 2009 I have a 200K LOC with Scotia. The good thing is that you only have to pay interest until you're finished residency and start making an income. Link to comment Share on other sites More sharing options...
future_doc Posted November 7, 2009 Report Share Posted November 7, 2009 Is 200k the upper limit with Scotia? Link to comment Share on other sites More sharing options...
leviathan Posted November 7, 2009 Report Share Posted November 7, 2009 Is 200k the upper limit with Scotia? I'm not sure but I think I could have got more if I needed it, and if my parents as the cosigners had the equity to cover it. Link to comment Share on other sites More sharing options...
future_doc Posted November 7, 2009 Report Share Posted November 7, 2009 Understood. Of course, one would prefer not to involve one's parents. Link to comment Share on other sites More sharing options...
rmorelan Posted November 8, 2009 Report Share Posted November 8, 2009 I would hope you wouldn't need more than 200K! The general estimate is 30 -35 thousand a year at even the more expensive schools I think. Link to comment Share on other sites More sharing options...
future_doc Posted November 8, 2009 Report Share Posted November 8, 2009 You are quite correct. Link to comment Share on other sites More sharing options...
newbie_01 Posted November 10, 2009 Report Share Posted November 10, 2009 ....i was always curious about the 'you don't have to pay till you are done residency' part. you do get charged for interest right during residency? its just that you don't start paying "base loan + interest" till after residency right? Link to comment Share on other sites More sharing options...
future_doc Posted November 10, 2009 Report Share Posted November 10, 2009 It would appear that the answer to both your questions is a resounding "Yes". To be absolutely sure, however, a PM to the OP will do it. Link to comment Share on other sites More sharing options...
leviathan Posted November 10, 2009 Report Share Posted November 10, 2009 That's right...you just pay the interest until you're done residency. After residency you must start paying the principle. Link to comment Share on other sites More sharing options...
rmorelan Posted November 11, 2009 Report Share Posted November 11, 2009 That's right...you just pay the interest until you're done residency. After residency you must start paying the principle. Now is it the same as the med school frame - where you actually use the LOC to pay the interest as you go along? Or is the entire LOC frozen during residency and you really do have to pay the interest out of salary etc. Not that it matters much, more of a curiosity thing than anything. I would hope I can actually start replying the loan itself during residency. Link to comment Share on other sites More sharing options...
future_doc Posted November 11, 2009 Report Share Posted November 11, 2009 It would make sense to me that they apply the payment first to interest owing and the remainder of the payment toward capital reduction. Of course, during the build up period, part of te capital would consist of 'capitalized interest' that was not paid while you were a student. Link to comment Share on other sites More sharing options...
rmorelan Posted November 11, 2009 Report Share Posted November 11, 2009 It would make sense to me that they apply the payment first to interest owing and the remainder of the payment toward capital reduction. Of course, during the build up period, part of te capital would consist of 'capitalized interest' that was not paid while you were a student. Absolutely! I am wondering if the LOC actually gets frozen then during the residency, or whether you can continue to use it during it until you become completely trained. For that matter, what happens to it after that Link to comment Share on other sites More sharing options...
future_doc Posted November 11, 2009 Report Share Posted November 11, 2009 Although only the OP knows for sure (plus residents), it woulod make sense that the loan continues to be available during residency which is part of our education - and after all, the banks compete for our business, the purpose of obtainingour business is to make loans available, the greater the loan, the greater the profit for the bank in terms of interest..and they would want us all to max out our laon during med school and residency to max their profits. Link to comment Share on other sites More sharing options...
Mourning Cloak Posted November 11, 2009 Report Share Posted November 11, 2009 My husband just finished family med. He got his LOC (at the time with a maximum lifetime limit of $150K). He used it through med school and residency - so long as you haven't hit your limit and continue to make payments, you can continue to use it until you have completed your residency. (And yes, for those who won't have an income, you can do stupid things like transfer money out of your LOC into a chequing account and then use that money to pay the interest on the LOC e.g. take it out and put it back.) Some banks have it set up so that you just roll the monthly interest over into the balance owing - that's very convenient for med students who won't have a regular monthly income to speak of. After residency (about 6 months or 12 months later, depending on the bank) you negotiate the repayment schedule. Obviously, it's best to use as little as possible and pay it down as fast as possible once you have a residency income, since usually your great interest rate (prime) goes up once you go into repayment. Interest rates are INCREDIBLE for loans right now, but there's no place for them to go but up. Link to comment Share on other sites More sharing options...
future_doc Posted November 11, 2009 Report Share Posted November 11, 2009 ......usually your great interest rate (prime) goes up once you go into repayment. Interest rates are INCREDIBLE for loans right now, but there's no place for them to go but up. What is interesting with Scotia is the following: Hi Everyone, I am the BC professional loan expert for Scotiabank. We are very pleased to announce we have a new authorized LOC limit for Medical and Dental students. Our rate is Prime, follows you into residency and remains so until your LOC is paid off. I can get you other province expert names ... just ask Patty If your interest rate goes up, might it be worthwhile flipping your loan over to Scotia:) and saving a bundle in interest over time? Link to comment Share on other sites More sharing options...
Mourning Cloak Posted November 11, 2009 Report Share Posted November 11, 2009 If your interest rate goes up, might it be worthwhile flipping your loan over to Scotia:) and saving a bundle in interest over time? OMG yes! That's quite possibly the most incredible thing I've ever heard. Repayment can go into the decades - where else do you get a repayment at prime? (It's really too good to be true). Link to comment Share on other sites More sharing options...
future_doc Posted November 11, 2009 Report Share Posted November 11, 2009 Go for it and check it out! Time may be of the essence and we all do what is in our own best interests. Once you have another bank lined up, your present bankers may well be willing to renegotiate rather than lose your business to competitors - altho Scotia hav e the added benefit of ahigh loan limit. They want to earn the interest. Use your power and your smarts! The devil is always in the details. Good luck! Link to comment Share on other sites More sharing options...
future_doc Posted November 11, 2009 Report Share Posted November 11, 2009 Its not necedssarily too good to be true. Undoubtedly, there will be other loans and having built up your loyalty, be it for mortgage, a practice loan, etc., your first choice will be to the bank that treated you well - and the interest rate will not be at prime for these type loans. So, the bank is making an investment for future business, while still making money on the exisiting professional student loan. It is simply good business on the part of the bank -and something for you to take advantage of in arranging your finances in the most cost effective way possible! Link to comment Share on other sites More sharing options...
rmorelan Posted November 11, 2009 Report Share Posted November 11, 2009 I am going to have to look into this - that really is quite an amazing program if it is as stated here. Link to comment Share on other sites More sharing options...
future_doc Posted November 11, 2009 Report Share Posted November 11, 2009 From what I see, use Scotia as your baseline - and then take it from there in assessing the competion and what is available to you. Just remember, you are in the driver's seat - they want you to sign on the dotted line more than you need them! Link to comment Share on other sites More sharing options...
White-Tiger Posted November 13, 2009 Report Share Posted November 13, 2009 Hello, I am interested in switching from RBC to ScotiaBank for my LOC. Could you possibly give me the email of the representative for Montreal, Quebec. Thank you. Link to comment Share on other sites More sharing options...
rmorelan Posted November 13, 2009 Report Share Posted November 13, 2009 RBC offers the exact same thing.It's not too good to be true. Even at prime, they are raking in the interest on the loan, and on top of that will probably secure a lifelong lucrative client in terms of personal and business financing. Hmmm, don't think my RBC loan does that right now. I will be confirming all of this shortly and post if I find out anything interesting Link to comment Share on other sites More sharing options...
future_doc Posted November 14, 2009 Report Share Posted November 14, 2009 Well, if you tell then what Scotia has on offer, give them the choice to match it with retroactive effect (if we are talking about interest) or simply tell them that you will likely flip your loan to a bank that will treat you better. They would be idiots to let you walk! Link to comment Share on other sites More sharing options...
CdnatWayne Posted November 14, 2009 Report Share Posted November 14, 2009 The 150k LoC at prime throughout residency is not unique to Scotia. I'm with RBC and I have a 150K LoC at prime that will last me through residency and fellowship (I asked my rep). I'm pretty sure TD offers a similar package. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.