Lines of Credit: Options

[Vincent Freeman]

Many of us this year will head down to United States to Study. We might as well research the Lines of Credit available to us. Keith_015 posted good information on private loans from the States:

 

http://www.premed101.com/forums/showthread.php?t=39381&highlight=LOC's

 

If you guys find some of the missing information please feel free to update. Most if not all of these lines of credit require a Canadian co-signor.

 

1. National Bank

Line of Credit Max: $ 200 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school 2) defer interest and principle for up to 12 months after you complete your studies

Other charges: No account handling charges

Note: Canadian Students studying in the U.S qualify

 

2. RBC

Line of Credit Max: $ 150 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

3. Scotiabank

Line of Credit Max: $ 200 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school 2) defer interest and principle till graduation

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

 

4.CIBC

Line of Credit Max: $ 150 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

 

5.TD Bank

Line of Credit Max: $ 150 000 and in can be increased depending on co-signors income and debt

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students studying in the U.S qualify

 

 

6. BMO

Line of Credit Max: $ 150 000 ( 30 000/year)

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students studying in the U.S qualify

 

 

There is more information I have to find out but the two I prefer are Scotibank and Bank National because 1) higher limit 2) you can defer interest and principle payment. The rest are more or less the same. However, devil is in the details. Each one of them had different fees and slightly different products to offer. If any of you guys have anything to add please feel free to update the chart.

 

Some questions I would ask before signing an LOC are:

 

1. Can I lock in the prime rate for the duration of the loan until repayment of capital?

2. When do you begin the repayment of capital?

3. Any annual fees? dispensing fees? application fees? rip me off fees I should know?

4. Can I use the line of credit as a chequing account?

5. Is there a credit limit per year? for example BMO limits 30 000 withdrawal per year.

 

My question: how wealthy does the co-signor have to be? Can they have a good job only? or do they need to own property?

 

From looking at things in this forum, the best bet is to use 1) LOC's + government student loan like OSAP 2) private loans in the States as Keith_015 discussed.

 

cheers,

 

V.F

[keith_015]

Many of us this year will head down to United States to Study. We might as well research the Lines of Credit available to us. Keith_015 posted good information on private loans from the States:

 

Private Student Loan Options Thread

 

If you guys find some of the missing information please feel free to update. Most if not all of these lines of credit require a Canadian co-signor.

 

1. National Bank

Line of Credit Max: $ 200 000 Dispersed unevenly. For MD: $50k, $40k, $30k, $30k. Rez: $25k, $25k

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school 2) defer interest and principle for up to 12 months after you complete your studies

Other charges: No account handling charges

Note: Canadian Students studying in the U.S qualify

 

2. RBC

Line of Credit Max: $ 150 000 Dispersed evenly over 4 years

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students in the U.S. qualify

 

3. Scotiabank

Line of Credit Max: $ 200 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school 2) defer interest and principle till graduation

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

 

4.CIBC

Line of Credit Max: $ 150 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

 

5.TD Bank

Line of Credit Max: $ 150 000 and in can be increased depending on co-signors income and debt

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students studying in the U.S qualify

 

 

6. BMO

Line of Credit Max: $ 150 000 ( 30 000/year)

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students studying in the U.S qualify

 

 

There is more information I have to find out but the two I prefer are Scotibank and Bank National because 1) higher limit 2) you can defer interest and principle payment. The rest are more or less the same. However, devil is in the details. Each one of them had different fees and slightly different products to offer. If any of you guys have anything to add please feel free to update the chart.

 

Some questions I would ask before signing an LOC are:

 

1. Can I lock in the prime rate for the duration of the loan until repayment of capital?

2. When do you begin the repayment of capital?

3. Any annual fees? dispensing fees? application fees? rip me off fees I should know?

4. Can I use the line of credit as a chequing account?

5. Is there a credit limit per year? for example BMO limits 30 000 withdrawal per year.

 

My question: how wealthy does the co-signor have to be? Can they have a good job only? or do they need to own property?

 

From looking at things in this forum, the best bet is to use 1) LOC's + government student loan like OSAP 2) private loans in the States as Keith_015 discussed.

 

cheers,

 

V.F

 

I've bolded any updates I added

[future_doc]

Good posts guys!

 

I would imagine, but don't know, that Canadian banks would require a sufficiently solvent Canadian cosignor for a Canadian studying in the US. After all, the risk increases for the bank, given that the Canadian student may decide to remain in the US, which would increase the cost and complexity of collecting by the bank in the event of default. I expect it is presumed that a student going to aq Canadian med school will remain in Canada (although this is not necessarily the reality).

[Hackintosh]

thank you, this should be stickied asap!

[keith_015]

Parity anyone? With the interest rate of Canadian LOC's vs. US, and with the dollar where it is, I think I will go the CDN route this year at least.

[ChicoMaki]

+1

They said it was coming...I'll probably stick to Cdn LOCs this year also

[keith_015]

I saw under the dental forum here that a RBC rep posted that Dental LOCs were up to $200k. So I decided to speak with a RBC rep today online. He has given me the impression that $150k isn't "firm". If you need more than the $150k, they can probably do that for you. Read log below

 

Keith

Initial Question/Comment: Is the med student LOC at $150k or $200k now?

 

11:07:03 RBC

You are being transferred to another queue. Please stand by...

 

11:07:13 RBC

Zachary Boudreau has joined this session!

 

11:07:13 RBC

Connected with Zachary Boudreau

 

11:07:23 Zachary Boudreau

Hi Keith.

 

11:07:26 Keith

Hello

 

11:07:53 Zachary Boudreau

I can double check that for you. Are you asking about your own or looking for a new one?

 

11:08:45 Keith

Well, I am planning for this Aug. I saw the Nova Scotia rep post online about the Dental LOC being raised to $200k and was wondering if the medical allotment had switched as well.

 

11:10:23 Zachary Boudreau

We base the program maximum on the average expected expenses, which we still have as $150,000. However, we want to be sure to allocate enough to get your through the program.

 

11:10:43 Zachary Boudreau

So, if you have a breakdown of the costs and it exceeds $150,000, we might still be able to do that.

 

11:12:13 Keith

Ok. I am still unclear if I will be in the US or Canada at this point. I spoke with a rep at a branch a few months back and was under the impression that $150k would be the limit, although for US schools, certainly this would not be enough to cover.

 

11:13:26 Keith

As well, I was told the limit was capped in equal allotments of 4, but I get the impression from the website that there is no limit per year. Certainly if RBC can loan out more than $150k uncapped, it would be a viable option.

 

11:15:03 Zachary Boudreau

Funds can be released as needed, if an update breakdown is provided.

 

11:15:38 Zachary Boudreau

We just want to help avoid using funds for other purposes and risk not having enough to continue on.

 

11:16:42 Keith

Oh I definitely understand. The US is a lot more expensive however and having those funds year to year is important. Restricting funds for students in CDN would make sense.

 

11:17:19 Keith

So would the possibility be there if a person was to go to the US to get a LOC greater than $150k?

 

11:17:38 Zachary Boudreau

Yes.

 

11:18:08 Zachary Boudreau

$150,000 is simply the average based on figures available to us.

 

11:18:44 Keith

I guess everybody I have spoken with has been under the impression that $150k was firm

 

11:19:48 Zachary Boudreau

We don't necessarily want to limit our clients either, so we may be able to exceed that/

 

11:20:13 Keith

Is there an upper unwritten cap?

 

11:20:33 Zachary Boudreau

No.

 

11:21:33 Zachary Boudreau

Another important point - if you do decide to study in Canada, the full amount can be made available right away and you are more likely to not need a cosigner. Studying abroad does present more of a risk, that's why there may be limitations in some cases.

 

11:22:42 Keith

The cosigner thing is definitely something I know about already.

 

11:23:34 Zachary Boudreau

Of course, because of the amount, we'll do what we can to do it without when possible.

 

11:24:06 Keith

So if I would end up going to the US and would set up and LOC with RBC, who would be the best to speak with? One of the reps posted on the list online, or would reps at branches be as knowledgeable?

 

11:25:18 Zachary Boudreau

Whichever you prefer. We have access to the same information and the application process is the same.

[Vincent Freeman]

Has anyone figured out how to get two professional student line of credit? Reading the forum I heard some people apply to two places during the same day. Is this even possible?

 

V.F

[Samira]

Has anyone figured out how to get two professional student line of credit? Reading the forum I heard some people apply to two places during the same day. Is this even possible?

 

V.F

 

Have the same question.........

 

+1 can confirm that 150K won't be the limit for US school (verified with 3 RBC credit advisors randomly over last month). I explained them that the tuition alone will be more than 200K, so they even verified it with their supervisors and confirmed that if you show them the letter from school or smth stating ur expences they can go way higher in that limit. I even verified if the school requires e-scrow account where all 4 year tuition has to go to (around 250K) they said they r ok with that, but u have to be paying off the interest while in school on that whole amount.

 

P.S I didn't apply to med school yet but I was really concerned abt financial options as a Canadian in order to be prepared in regards of my credit history etc....

 

Hope that helps:)

[keith_015]

Just got off the phone with RBC. I am going to pursue this in the next few weeks. I am starting the process of getting a $300k LOC with RBC. I was told that it would be possible to get a loan this high, provided they see proof to justify a loan that high. The cosigner though has to be financially strong (which mine is). Because my cosigner is in another province, this will take a little bit of time to figure out, and for my to tell you guys the result.

 

It might be worth a shot to try going above the typical CDN school limit with other banks as well, seeing as though you can justify the need. The guy was a little thrown off seeing as though I asked for $300k, but then when he found out how much tuition was, his tone changed. Anyways, good luck to you others who are looking at financing now too! GO PARITY (OR BEYOND)!

[Hercegovka]

I was accepted at a US school and I'm waiting to hear back from Ontario, but I need proof that I can pay for US tuition so I did some research

 

I visited RBC, TD, ScotiaBank and National Bank yesterday and today and was able to compare them.

 

ScotiaBank, in my opinion, is the best choice.

 

FYI I posted this info in 2 other threads...

 

Here is my breakdown of info I've gathered

 

NOTES for All 4 institutions:

1) interest rate = prime rate = 2.25% as of today

2) there are no additional charges or fees associated

3) repayment period for the principal loan beings 12 months after residency

4) Canadian students studying in the U.S. qualify

5) you can use the money however you want (they won't be checking up on you... I saw in one thread someone mentioned this so I asked...) as long as you don't go over the annual cap (see each Bank separately for details)

6) you cannot lock the prime rate (have a fixed rate) while in school

7) if you are studying in the US -- you need a guarantor/co-signer

 

ScotiaBank

--> Line of Credit Max: $200 000 dispersed evenly over 4 years... if you don't use the max of 50 k per year, you can use the remainder of the line of credit during your residency so the money you do not use in years 1-4 does not go to waste

--> Repayment Option:

1) pay interest monthly while in school for up to 12 months after residency, after that (after residency + 12 month grace period) you pay principal + interest

2) defer interest payment + principal payment until 12 months after residency... in this case, you would have to leave some room for interest to accrue on the principal amount so the annual limit will be slightly less than 50 k ... but you can make any payments while in school if you choose to (combination of 1 and 2)

--> Amortization period is 15 years

--> Once repayment period starts (12 months after residency) you can switch from the prime rate to a (most likely) fixed rate that will not fluctuate

--> The line of credit also comes with a personal line of credit of $15 000, a Gold Visa with a limit of $5000, and overdraft protection of $5000

--> no co-signer/guarantor needed if you are studying in Canada and have a good credit rating

 

National Bank

--> they stated it was designed for students studying in Canada

--> Line of Credit Max: $200 000 dispersed unevenly: 50 k max in first year, 40 k max in second year, and 30 k years 3 and 4 (150 000 max during MD) and the other $50 000 goes towards your residency with a max of $20 000 per year

--> Repayment Option:

1) pay interest monthly while in school for up to 12 months after residency, after that (after residency + 12 month grace period) you pay principal + interest

2) defer interest payment + principal payment until 12 months after residency... in this case, you would have to leave some room for interest to accrue on the principal amount so the annual limit will be slightly less than 50 k ... but you can make any payments while in school if you choose to (combination of 1 and 2)

--> Amortization period is 15 years

--> Once repayment period starts (12 months after residency) you can switch from the prime rate to a (most likely) fixed rate that will not fluctuate

--> no fee checking account

--> platinum mastercard -- free to use for the first two years (lots of perks like travel insurance and points)

--> no co-signer/guarantor needed if you are studying in Canada and have a good credit rating

 

RBC

--> Line of Credit Max: $150 000 dispersed evenly over 4 years

--> Repayment Option: pay interest monthly while in school for up to 12 months after residency, after that (after residency + 12 month grace period) you pay principal + interest

--> Did not specify amortization period (although TD told me it was 10 years for RBC)

 

TD

--> Line of Credit Max: $150 000 dispersed unevenly: 60 k max in first year, 30 k max in years 2-4

--> Repayment Option: pay interest monthly while in school for up to 12 months after residency, after that (after residency + 12 month grace period) you pay principal + interest

--> Amortization period is 20 years

[keith_015]

Just to update y'all on my RBC LOC affairs as the thread above popped up and I was in contact with my RBC account manager today. Right now my cosigner is "uneasy" about the amount I'm looking to borrow on RBC's terms, but it seems to be a ploy to release them from as much responsibility as possible. Nonetheless, the account manager has said they would be able to issue the amount asked for, or needed ($325k) and come to better terms with the cosigner. He said this matter was a bank priority (likely at their branch) for them right now, so it should be resolved shortly. Sooooo...it is possible to get 1 LOC to cover all!

[CdnatWayne]

@keith_015: Is this a secured or unsecured LoC?

[keith_015]

@keith_015: Is this a secured or unsecured LoC?

 

Not sure. I am under the impression that it is fairly unsecured. The cosigners were offering to place some money in an interest gathering account as collateral. This was mentioned prior to the bank contacting the cosigner. I'm sure they just aren't up to having too many assets tied. They are business owners and big clients of RBC and I assume they are looking out for their best interests and likely trying to make sure things are unsecured. I'm sure they have enough in their bank accounts to have as collateral for the entire amount a few times over, but oh well!

[bmelover]

Is it just me or does it seem like here is a HUGE disparity in interest rate between US and Canadian Loans? Am I missing something?

[keith_015]

Is it just me or does it seem like here is a HUGE disparity in interest rate between US and Canadian Loans? Am I missing something?

 

No, you are not missing anything. The interest rate here is attractive being at prime no matter the credit rating whereas the US loans basement out at around 4 + LIBOR, but likely only an A+ credit co-signer would fetch you that rate. The only caveat is that you could get screwed on the exchange rate, especially a week such as this. The dollar has lost over 5 cents since May 13, so the exchange difference if you would get stuck exchanging today would make it a 5% premium, thus offsetting the lower interest rate.

 

If anyone wants to track the exchange rate: http://www.google.com/finance?q=cadusd

 

As an update for myself, I am still working on my RBC credit line for $325k. I had issues with the original cosigner I had as the terms seemed to have make her timid. Things have changed and I have since got my parents involved. They have been able to get approved for $200k w/o putting a lien on the house, so this is based on one parent's income + retirement investments. I will be looking to add another cosigner to sign off on the $125k, which hopefully shouldn't be a problem based on the experience I have gone through for the past 3 weeks.

[AnxiousBoy]

Wondering what you guys' updates are for this topic.

 

I'm a rising 3rd year studying in the States, and now I've hit the financial dilemma.

 

What I have now:

 

RBC: 180K limit with NO co-signer. (not quite sure what they're doing now, but back then not too long ago, they were giving these out to US goers too)

 

So, I've looked around and here is what I found.

 

1. 2 line of credit accounts are allowed as long as you don't exceed the max cap. Max cap being $200K at Scotiabank and since you can get it all at once, the whole exercise is completely fruitless.

 

2. I went through MD management, which I thought was a branch of National Bank (I can be wrong), but they said the program does not include US goers, and so for US goers, they quoted prime + 2%. Also, their cap is $150K for US bound, so again, fruitless.

 

3. Went back to RBC, and they seem to be the most flexible about the limit while other banks were very strict on their cap. However, they wanted a co-signer on the ENTIRE loan, which i guess in your cases doesn't matter, but in my case I don't want to retro co-sign for something I've already fought for in the past and won.

 

Just wondering if anyone else found a solution yet.

[keith_015]

1. 2 line of credit accounts are allowed as long as you don't exceed the max cap. Max cap being $200K at Scotiabank and since you can get it all at once, the whole exercise is completely fruitless.

 

No idea on this. You will however need cosigners on each.

 

2. I went through MD management, which I thought was a branch of National Bank (I can be wrong), but they said the program does not include US goers, and so for US goers, they quoted prime + 2%. Also, their cap is $150K for US bound, so again, fruitless.

 

MD Management is in a way a middle man for National Bank. Go through National directly and you will get $150 for first four years and $50 for residency at prime.

 

3. Went back to RBC, and they seem to be the most flexible about the limit while other banks were very strict on their cap. However, they wanted a co-signer on the ENTIRE loan, which i guess in your cases doesn't matter, but in my case I don't want to retro co-sign for something I've already fought for in the past and won.

 

I am doing this option with RBC for the entire amount. It doesn't matter which bank you will go to now, YOU WILL NEED A COSIGNER FOR THE ENTIRE AMOUNT. Times have changed: credit is tighter, and they are wanting accountability if you won't be on CDN soil.

 

Besides, with your own credit line now, there is no way any bank will loan to you without a cosigner. Even if you haven't used your entire credit line, the bank will count the entire amount against you as debt.

[AnxiousBoy]

Besides, with your own credit line now, there is no way any bank will loan to you without a cosigner. Even if you haven't used your entire credit line, the bank will count the entire amount against you as debt.

 

I think you mis-understood me. I am willing to use a co-signer for any new credit limit I receive, but RBC wants to tag a co-signer to this AND the 180K line I already have without a co-signer. It seems it's this or no other bank wanna play ball with me. Pity because I really want to come back to Canada for residency, after which point, would I be different from any other Canadian trained MD?

 

Anyone know of any resources outside of commercial banks/Government?

[keith_015]

Sorry, I didn't get your retro-active cosigning bit before.

 

To be fair, I did get thrown a curveball on the phone which you could maybe attempt too. The first time I actually called in to RBC rather than visit a branch. The person asked if I would guarantee that I would come back to Canada, and I said I didn't know where I'd be. The person said they couldn't help me unless I would get a cosigner. You possibly could try that route too, especially if you think that's how it'll go with your direction in the future.

 

The only resources aside from commercial banks and gov't is rich relatives or winning the lottery. But if you happened to be so lucky to get financial aid from a school (which seems to be very rare), that is a very outside option too. I've looked high and low for options.

 

For you, if you can find an A+ credit rated person in the US willing to cosign, you can borrow the entire amount of cost of education. There is a thread somewhere in the forum for that too.

[BuckyBallz]

Many of us this year will head down to United States to Study. We might as well research the Lines of Credit available to us. Keith_015 posted good information on private loans from the States:

 

http://www.premed101.com/forums/showthread.php?t=39381&highlight=LOC's

 

If you guys find some of the missing information please feel free to update. Most if not all of these lines of credit require a Canadian co-signor.

 

1. National Bank

Line of Credit Max: $ 200 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school 2) defer interest and principle for up to 12 months after you complete your studies

Other charges: No account handling charges

Note: Canadian Students studying in the U.S qualify

 

2. RBC

Line of Credit Max: $ 150 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

3. Scotiabank

Line of Credit Max: $ 200 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school 2) defer interest and principle till graduation

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

 

4.CIBC

Line of Credit Max: $ 150 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

 

5.TD Bank

Line of Credit Max: $ 150 000 and in can be increased depending on co-signors income and debt

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students studying in the U.S qualify

 

 

6. BMO

Line of Credit Max: $ 150 000 ( 30 000/year)

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students studying in the U.S qualify

 

 

There is more information I have to find out but the two I prefer are Scotibank and Bank National because 1) higher limit 2) you can defer interest and principle payment. The rest are more or less the same. However, devil is in the details. Each one of them had different fees and slightly different products to offer. If any of you guys have anything to add please feel free to update the chart.

 

Some questions I would ask before signing an LOC are:

 

1. Can I lock in the prime rate for the duration of the loan until repayment of capital?

2. When do you begin the repayment of capital?

3. Any annual fees? dispensing fees? application fees? rip me off fees I should know?

4. Can I use the line of credit as a chequing account?

5. Is there a credit limit per year? for example BMO limits 30 000 withdrawal per year.

 

My question: how wealthy does the co-signor have to be? Can they have a good job only? or do they need to own property?

 

From looking at things in this forum, the best bet is to use 1) LOC's + government student loan like OSAP 2) private loans in the States as Keith_015 discussed.

 

cheers,

 

V.F

 

just to resurrect this thread...

 

NBC

• [*]max 250K....200K over 4 yrs school and 50K for residency. A guarantor is required (not a cosigner). Interest at prime (currently 3%)

 

RBC

• max 150 dispersed over 3 or 4 years (depending on your needs). A cosigner is required. Interest at prime (currently 3%)
  

 

TD

• 200K max dispersed over 4 years. In my case needed a STRONG cosigner with TD assets, accounts, etc. Interest at prime (3%)
  

[rmorelan]

Scotia has now upped things as well - to 275K maximum for a 5 year residency - that is 200K during med school and up to 75K after that at 15K a year during residency.

[Abbyboy]

Many of us this year will head down to United States to Study. We might as well research the Lines of Credit available to us. Keith_015 posted good information on private loans from the States:

 

Private Student Loan Options Thread

 

If you guys find some of the missing information please feel free to update. Most if not all of these lines of credit require a Canadian co-signor.

 

1. National Bank

Line of Credit Max: $ 200 000 Dispersed unevenly. For MD: $50k, $40k, $30k, $30k. Rez: $25k, $25k

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school 2) defer interest and principle for up to 12 months after you complete your studies

Other charges: No account handling charges

Note: Canadian Students studying in the U.S qualify

 

2. RBC

Line of Credit Max: $ 150 000 Dispersed evenly over 4 years

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students in the U.S. qualify

 

3. Scotiabank

Line of Credit Max: $ 200 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school 2) defer interest and principle till graduation

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

 

4.CIBC

Line of Credit Max: $ 150 000

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: It is unknown whether Canadian Students studying in the U.S qualify

 

 

5.TD Bank

Line of Credit Max: $ 150 000 and in can be increased depending on co-signors income and debt

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students studying in the U.S qualify

 

 

6. BMO

Line of Credit Max: $ 150 000 ( 30 000/year)

Interest rate: prime rate (2.25% March 30 2010)

Repayment Option: 1) interest alone while in school

Other charges: Unknown

Note: Canadian Students studying in the U.S qualify

 

 

There is more information I have to find out but the two I prefer are Scotibank and Bank National because 1) higher limit 2) you can defer interest and principle payment. The rest are more or less the same. However, devil is in the details. Each one of them had different fees and slightly different products to offer. If any of you guys have anything to add please feel free to update the chart.

 

Some questions I would ask before signing an LOC are:

 

1. Can I lock in the prime rate for the duration of the loan until repayment of capital?

2. When do you begin the repayment of capital?

3. Any annual fees? dispensing fees? application fees? rip me off fees I should know?

4. Can I use the line of credit as a chequing account?

5. Is there a credit limit per year? for example BMO limits 30 000 withdrawal per year.

 

My question: how wealthy does the co-signor have to be? Can they have a good job only? or do they need to own property?

 

From looking at things in this forum, the best bet is to use 1) LOC's + government student loan like OSAP 2) private loans in the States as Keith_015 discussed.

 

cheers,

 

V.F

 

I've bolded any updates I added

 

I have found TD Bank good for US applicants. The require Guarantoe or Co-signer and no charge on property. The repayment period is 20 years.

 

Scotia Professional LOC is secured one and require collateral charge on property. Customer service is worse and very BAD. I was asked to deposit $200 K in GIC or have charge on Guarantor Property.

 

RBC rules have been changed. They are strict now and require $225,000 income for the Guarantor for 4 years.

[Abbyboy]

I was accepted at a US school and I'm waiting to hear back from Ontario, but I need proof that I can pay for US tuition so I did some research

 

I visited RBC, TD, ScotiaBank and National Bank yesterday and today and was able to compare them.

 

ScotiaBank, in my opinion, is the best choice.

 

FYI I posted this info in 2 other threads...

 

Here is my breakdown of info I've gathered

 

NOTES for All 4 institutions:

1) interest rate = prime rate = 2.25% as of today

2) there are no additional charges or fees associated

3) repayment period for the principal loan beings 12 months after residency

4) Canadian students studying in the U.S. qualify

5) you can use the money however you want (they won't be checking up on you... I saw in one thread someone mentioned this so I asked...) as long as you don't go over the annual cap (see each Bank separately for details)

6) you cannot lock the prime rate (have a fixed rate) while in school

7) if you are studying in the US -- you need a guarantor/co-signer

 

ScotiaBank

--> Line of Credit Max: $200 000 dispersed evenly over 4 years... if you don't use the max of 50 k per year, you can use the remainder of the line of credit during your residency so the money you do not use in years 1-4 does not go to waste

--> Repayment Option:

1) pay interest monthly while in school for up to 12 months after residency, after that (after residency + 12 month grace period) you pay principal + interest

2) defer interest payment + principal payment until 12 months after residency... in this case, you would have to leave some room for interest to accrue on the principal amount so the annual limit will be slightly less than 50 k ... but you can make any payments while in school if you choose to (combination of 1 and 2)

--> Amortization period is 15 years

--> Once repayment period starts (12 months after residency) you can switch from the prime rate to a (most likely) fixed rate that will not fluctuate

--> The line of credit also comes with a personal line of credit of $15 000, a Gold Visa with a limit of $5000, and overdraft protection of $5000

--> no co-signer/guarantor needed if you are studying in Canada and have a good credit rating

 

National Bank

--> they stated it was designed for students studying in Canada

--> Line of Credit Max: $200 000 dispersed unevenly: 50 k max in first year, 40 k max in second year, and 30 k years 3 and 4 (150 000 max during MD) and the other $50 000 goes towards your residency with a max of $20 000 per year

--> Repayment Option:

1) pay interest monthly while in school for up to 12 months after residency, after that (after residency + 12 month grace period) you pay principal + interest

2) defer interest payment + principal payment until 12 months after residency... in this case, you would have to leave some room for interest to accrue on the principal amount so the annual limit will be slightly less than 50 k ... but you can make any payments while in school if you choose to (combination of 1 and 2)

--> Amortization period is 15 years

--> Once repayment period starts (12 months after residency) you can switch from the prime rate to a (most likely) fixed rate that will not fluctuate

--> no fee checking account

--> platinum mastercard -- free to use for the first two years (lots of perks like travel insurance and points)

--> no co-signer/guarantor needed if you are studying in Canada and have a good credit rating

 

RBC

--> Line of Credit Max: $150 000 dispersed evenly over 4 years

--> Repayment Option: pay interest monthly while in school for up to 12 months after residency, after that (after residency + 12 month grace period) you pay principal + interest

--> Did not specify amortization period (although TD told me it was 10 years for RBC)

 

TD

--> Line of Credit Max: $150 000 dispersed unevenly: 60 k max in first year, 30 k max in years 2-4

--> Repayment Option: pay interest monthly while in school for up to 12 months after residency, after that (after residency + 12 month grace period) you pay principal + interest

--> Amortization period is 20 years

 

===========================================

Here is my experience this month:

 

I have appllied for Scotia Professional LOC in Abbotsford, B.C for Studying in U.S. The Account manager was quite positive to approve us for $250 while filling up the application.

 

Two weeks later, Scotia Manager told that Scotia require secured charge (Mortgage) on Guarantor property for U.S. When we insisted that this condition was not discussed when we came to branch 2 weeks ago and why we were not informed for it. Then another excuse :

 

We were told that Underwriter is not considering our 2 Guarantors because they are not blood related and close enough. One Guarantor was my sister in law and other paternal Uncle. Who is bank to Judge our relation with Guarantor for Guarantee on loan if they full fill all conditions. One Guarantor has 1.5 million dollar home with 1.2 million equity in home and Goverment Job and another has good income.

 

On reapplying with another branch, we got answer in 48 hours that Underwriter will approve only Student LOC with charge on the Guarantor property or 200 K deposit in GIC. Why would some one (Guarantor) take mortgage charge on property for applicant when Guarantor is undertaking to pay upon default. If we need to take mortgage for the student loan, we will shop around to get mortgage at best rate not Student Loan from Scotia @ 3 %. This is worse case for Student Loan and we were denied after total of 3 weeks.

 

Some Scotia advisors with UBC and Alberta were surprised to hear processing time for our loan but they were unable to help. The Underwriters dictate policies for processing loans and all is hidden here.

 

This means that only rich can study in Dentistry and if person has no property to put mortgage charge, you will not get loan from Scotia.

 

Scotia Bank should disclose on their Website or in Branch that their Professional Student LOC for US applicants will be secured one and require these conditions fulfilled before applying in branch. This will help for saving time and frustration in visiting Scotia branches.

 

TD CANADA TRUST IS BEST FOR US APPLICANTS. Apply there with Guarantor with low TDS and some assets and in return unsecured LOC.

[lazyboy]

One reason TD is better may be because they have banking business in USA. They would have better resources to deal with situation when and if it happens in the state.