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Student LOC question


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I have been doing a bit of research on this issue, and here is what I have come up with:

 

1. If whoever talks to you does not seem to be able to give you what you think you deserve (within reason), go elsewhere, and tell them why. You would be surprised how many times they acquiesce (sp?) in light of you growing a pair.

 

2. Accept nothing more than prime interest rate. Most banks offer this; if they tell you it's more, then they are uninformed/trying to fool you. Make sure you hash out how much the interest rate will be during your residency and after. Some are able to offer prime during residency, and even during fellowship.

 

3. APPLY FOR OSAP (maybe after your LOC -- I've heard mixed things about this) and use it before you use your line of credit, or at least let it grow some interest if you don't need it. It's a loan with no interest (until you are done school), you'd be silly to not apply. After you finish your MD, you can put your OSAP loan on your LOC for a smaller interest rate (prime) -- i.e. consolidate your debt onto the LOC.

 

4. Shop around. Try to see what they can offer you without running a credit check. If they insist, I would walk away.

 

5. You should not have to co-sign unless you have bad credit. If they tell you you need to but you are sure you have good credit, tell them to shuv it.

 

6. RBC allows you to withdraw however much you want in a given year (other banks, not necessarily so); they also have med school LOC specialists in most major canadian cities. I believe their LOC is the highest amount of all the banks.

 

7. They really shouldn't be budgeting with you. They are biased and have a vested interest in making money off of you and should not be involved in how you plan on spending the money. You should go to a financial advisor (I believe the CMA offers them for free to all med students) to plan out your budget. Your budget should not affect the amount they give you.. if they are prying, I would be wary (unless you have bad credit).

 

8. Try to ask for freebies (no limit student banking, a credit card that has good features, etc).

 

9. I would not get life insurance on your LOC unless you have dependents, and even then, getting it from elsewhere is probably cheaper, and if you were to die, whoever gets the money would get it in cash (say $250000), instead of the bank using it to pay off your LOC and no more (say $100000 or $5 or $250000). The CMA also has good insurance packages that are very cost effective.

 

10. Make sure you find out what happens if, in the rare chance, you don't match to your residency. Would you're interest rate skyrocket? Or would it be held at prime?

 

That's it for now! Good luck, and just a disclaimer, this is only based on what I have read on the internet.. but I think the best rule of thumb is to be skeptical and try to get unbiased information (i.e. no conflicts of interest).

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ok so scotiabank allots you 50k per year, which translates to 150k over 3 years. However, the guy said it's easy to up it to 200k, but it seemed like this is generally only done towards the end of the 3 years. This kinda put me off.. I'd rather have access to 200k as needed over the 3 years.

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ok so scotiabank allots you 50k per year, which translates to 150k over 3 years. However, the guy said it's easy to up it to 200k, but it seemed like this is generally only done towards the end of the 3 years. This kinda put me off.. I'd rather have access to 200k as needed over the 3 years.

 

That comes up a bit - people don't like limits although 50K is way, way more than you actually need.

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ok so scotiabank allots you 50k per year, which translates to 150k over 3 years. However, the guy said it's easy to up it to 200k, but it seemed like this is generally only done towards the end of the 3 years. This kinda put me off.. I'd rather have access to 200k as needed over the 3 years.

I got my LOC all started and done (ready for physical signing at a branch) through RBC in 20 min by phone. No limit per year, decent freebies (Visa card, etc), and they gave me 200K instead of 250K only because I am coming in with some student debt via OSAP that needs to be taken into account in my case.

 

Overall, I suggest RBC.

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I got my LOC all started and done (ready for physical signing at a branch) through RBC in 20 min by phone. No limit per year, decent freebies (Visa card, etc), and they gave me 200K instead of 250K only because I am coming in with some student debt via OSAP that needs to be taken into account in my case.

 

Overall, I suggest RBC.

 

Did you try to negotiate the Infinite Avion? Also does the RBC LOC interest rate increase during your residency or is it held at prime?

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Did you try to negotiate the Infinite Avion? Also does the RBC LOC interest rate increase during your residency or is it held at prime?

I didn't negotiate anything but I may tomorrow when I go to sign. As for the rate, it's prime (3.0 right now) and will stay there until 12 mo after residency. I will confirm all this before I sign anything anyway.

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That comes up a bit - people don't like limits although 50K is way, way more than you actually need.

I was doing up a brief budget for first year and I was at 50k already (allotted about 13k for a car though) :/

 

I spoke to RBC, and I'm definetely going with RBC... they don't give you annual limits.

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the guy at my branch said we have to submit like a budget/plan kinda thing and your credit amount is based on that. did you have to do that, or you just got the 250k?

He did it over the phone. And given I have 2 degrees worth of OSAP going into med, he gave me 200K, not 250. I'm not concerned though.

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Did you try to negotiate the Infinite Avion? Also does the RBC LOC interest rate increase during your residency or is it held at prime?

 

I nearly just peed myself on a GO Train reading this message.

 

I didn't even know the Infinite Avion (or any of the VISA Infinite cards) was on the table for negotiation. Holy bananas - nothing says I can pick you up at a bar when you whip that baby out.

 

Hey so that Mac PM101 reveal party I wanted to host - ppl still interested? PM me!

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I nearly just peed myself on a GO Train reading this message.

 

I didn't even know the Infinite Avion (or any of the VISA Infinite cards) was on the table for negotiation. Holy bananas - nothing says I can pick you up at a bar when you whip that baby out.

 

Hey so that Mac PM101 reveal party I wanted to host - ppl still interested? PM me!

 

Can we actually get the Infinite cards?!?!? That would be too cool... I'm going to give RBC a call tomorrow to see what I can work out :cool:

 

And count me in for the Mac PM101 reveal party :D

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the guy at my branch said we have to submit like a budget/plan kinda thing and your credit amount is based on that. did you have to do that, or you just got the 250k?

 

I went into RBC in downtown Toronto (someone with medical/dental school LOC experience) and no, he did not ask.

 

Frankly, it's none of their business. They will check your credit score and that should be sufficient.

 

You could always ask them for budget advice, and maybe that's what they were trying to offer.. but it can only work against you if they are only inquiring because they don't trust you.

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Rext, I called the following person, got her away message, and followed her instructions to call her colleague:

Glenda Hedley 905-521-2160 McMaster University

 

I spoke with Jarret and I found him extremely helpful.

 

Good luck! (It's a long weekend though, so you may have to call on Tuesday)

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Rext, I called the following person, got her away message, and followed her instructions to call her colleague:

Glenda Hedley 905-521-2160 McMaster University

 

I spoke with Jarret and I found him extremely helpful.

 

Good luck! (It's a long weekend though, so you may have to call on Tuesday)

 

Thanks a bunch :D

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Can we actually get the Infinite cards?!?!? That would be too cool... I'm going to give RBC a call tomorrow to see what I can work out :cool:

 

And count me in for the Mac PM101 reveal party :D

 

What did they end up telling you?? Also, has anyone ever managed to negotiate an Infinite avion before??

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