Changing LOCs from one bank to the other after using first LOC

[MCATwannabe]

Hi,

Is it possible to change LOCs from one bank to another after you have drawn some money from your bank?

Say, I have 30 k balance on my LOC, and realize another bank is giving a better deal. Can I open up another LOC at the other bank and transfer the money from that bank to the old one to close it?

Is this thing possible?

I just realized Scotia has a Prime rate until after 10 years, while RBC has only until 1 year after graduation. So I want to know if such a transfer is possible?

Any response will be appreciated.

[1234]

I just realized Scotia has a Prime rate until after 10 years

 

What exactly does this mean?

[gb35]

Hi,

Is it possible to change LOCs from one bank to another after you have drawn some money from your bank?

Say, I have 30 k balance on my LOC, and realize another bank is giving a better deal. Can I open up another LOC at the other bank and transfer the money from that bank to the old one to close it?

Is this thing possible?

I just realized Scotia has a Prime rate until after 10 years, while RBC has only until 1 year after graduation. So I want to know if such a transfer is possible?

Any response will be appreciated.

 

My impression from RBC was that it would stay at prime through repayment...

[rmorelan]

My impression from RBC was that it would stay at prime through repayment...

 

check the fine print - no bank I am aware of offers that.

[rmorelan]

Hi,

Is it possible to change LOCs from one bank to another after you have drawn some money from your bank?

Say, I have 30 k balance on my LOC, and realize another bank is giving a better deal. Can I open up another LOC at the other bank and transfer the money from that bank to the old one to close it?

Is this thing possible?

I just realized Scotia has a Prime rate until after 10 years, while RBC has only until 1 year after graduation. So I want to know if such a transfer is possible?

Any response will be appreciated.

 

You can, and many actually do transfer if they feel they can get better service/deal. Still I don't think scotia (unless something radically has changed) has a 10 year prime repayment policy(?) That is a huge shift if they do (it would be awesome mind you). Where did you hear that - I would love to confirm

[future_doc]

We are in the driver's seat, not the banks and, anogther bank would welcome you.

[holiday1001]

check the fine print - no bank I am aware of offers that.

that's correct. repayment mode's interest is not fixed at prime.

[MCATwannabe]

Yeah a few people are saying this, and I heard the bank rep told me something about the 10 year thing on the phone.

 

Ok. So if it is true, I'm wondering if I just switch now, or next year. Do you know if there are any bad consequences for changing LOCs? What's the procedure?

[PhoenixFlare500]

Yeah a few people are saying this, and I heard the bank rep told me something about the 10 year thing on the phone.

 

Ok. So if it is true, I'm wondering if I just switch now, or next year. Do you know if there are any bad consequences for changing LOCs? What's the procedure?

 

Changing LOCs is pretty simple, you just go to another bank and sign up for theirs and they should just be able to do it all for you. Before you go through the trouble I'd make sure to find out exactly what the deal is with this 10 year thing. Bank reps use very deceiving wording, the classic one being that you "don't pay interest" on a line of credit until after you graduate. And you can switch any time you want. I'm sure they'd frown upon you switching back and forth if you weren't happy with the first switch, but then again they do want your money anyways.

[it'sallgood]

You can, and my actually do transfer if they feel they can get better service/deal. Still I don't think scotia (unless something radically has changed) has a 10 year prime repayment policy(?) That is a huge shift if they do (it would be awesome mind you). Where did you hear that - I would love to confirm

 

Here is the thread I read this on! I just posted this to another thread but will post again because it does confirm this.

 

I'm holding my Scotia docs in hand. My package was up and running and I took my first advance last Friday. I was approved for $200K, $5000 Gold Passport Visa fee waived indefinitely, $5000 overdraft, free account, free bank drafts etc. Note that the small print in section 6 of my docs says that once I am in the payback period I have 10 years AT PRIME to pay it back if the balance is $10k or higher; 5 yrs if lower. Payback at prime is a big plus!

 

Scotia will also allow you another $75K ($15k per yr to max of 5 yrs) once in residency as long as your credit is still good and they will also give you an additional $30K to purchase a car in residency.

 

My experience has been great! BTW I got mine in my very small home town with the small business rep who was excellent.

[PCC]

I said this in a different thread but I'll put it here as well.

 

I tried switching into Scotia for other reasons, and basically, they wouldn't give me the whole 200K. They would only offer 150 k since I have only 2 years left.

 

If someone else has heard differently, I'd love to know where. But two separate reps (oh and med specialists too) have said the exact same thing to me. I don't understand how offering me less money is in anyway looking for my business.

[MCATwannabe]

I said this in a different thread but I'll put it here as well.

 

I tried switching into Scotia for other reasons, and basically, they wouldn't give me the whole 200K. They would only offer 150 k since I have only 2 years left.

 

If someone else has heard differently, I'd love to know where. But two separate reps (oh and med specialists too) have said the exact same thing to me. I don't understand how offering me less money is in anyway looking for my business.

 

Can't you tell them I want to completely switch over. Then They should give you???

[gb35]

What my rep told me is that they won't put it in writing, because they reserve the right to bump the rate during repayment, but that she has never had anyone get bumped above prime during repayment.

[ScotiabankMedsAdvisorLOC]

Okay, so here's some clarification...

Some Financial Institutions actually have it in writing on their contract that the interest rate will increase once in repayment and it does.

Historically Scotiabank's line of credit has never increased from prime but we do not state this on the contract because we cannot predict that it won't happen in the future.

[MCATwannabe]

Okay, so here's the scoop...

Some Financial Institutions actually have it in writing on their contract that the interest rate will increase once in repayment and it does.

Historically Scotiabank's line of credit has never increased from prime but we do not state this on the contract because we cannot predict that it won't happen in the future.

 

I think that should clear things up.

[future_doc]

Okay, so here's the scoop...

Some Financial Institutions actually have it in writing on their contract that the interest rate will increase once in repayment and it does.

Historically Scotiabank's line of credit has never increased from prime but we do not state this on the contract because we cannot predict that it won't happen in the future.

 

Hi Catherine,

 

This is not rocket science. Scotia wants the option to increase the rate above prime - its that simple. Although they are making a profit and creating loyalty for the future, they may decide to increase ther interest rate beyond prime during repayment. They easily can agree not to. History is meaningless without it being in writing - as a banker, you know this, so do we.

[ScotiabankMedsAdvisorLOC]

Please understand that a student line of credit is completely open and can be paid out and transfered to another financial institution at any time .

 

Of course we value you as clients and we are going to do our best to provide the best service and rate possible.

 

Hi Catherine,

 

This is not rocket science. Scotia wants the option to increase the rate above prime - its that simple. Although they are making a profit and creating loyalty for the future, they may decide to increase ther interest rate beyond prime during repayment. They easily can agree not to. History is meaningless without it being in writing - as a banker, you know this, so do we.

[future_doc]

Sotia has an opporunity to become a Leader if t is willing to step up to he plate.

 

Bu it is not willing.

[dentopia11]

they hardly do it for charity..do they now?

[mm88]

Sotia has an opporunity to become a Leader if t is willing to step up to he plate.

 

Bu it is not willing.

 

It really dep on who you're dealing with. I've met terrible FSRs at every bank but I've also met some great one at those very same banks. It's the same for all financial services, sometimes its not just the institution but who you're dealing with!