medhopefuls2016 Posted June 15, 2012 Report Share Posted June 15, 2012 I just finished chatting with an agent at RBC, and I felt that the deal was way too good to be true. Here was what the agent said *250K max, no limiter (i.e you can take all that out at once if you want) *Interesting only for medical school AND residency (including any fellowship you might do) (??) *One year Grace after you finish all your training (residency and fellowship INCLUDED). I specifically asked about fellowships, and my agent said yes. *Collection (principal + interest) begins after the grace period at prime still (Open loan (i.e you can make large payment at any time you want) but set at 15 years) * Any funding you get from bursary/scholarship/OSAP is NOT deducted from your maximum 250K funding. --For TD, you need to start paying your principal one year AFTER MEDICAL SCHOOL. For RBC, you need to pay back one year AFTER MEDICAL SCHOOL AND RESIDENCY/FELLOWSHIP. Sounds too good to be true for me. Can anyone verify what my agent said? Comparison TD: *Max 200K. Limiter set at 60K/year max *Max 200K is what they allow. If you have OSAP/scholarship/other loans they deduct it from the max 200K you can borrow *Payment of principal beings one year after medical school at prime for interesting and 1% for principal RBC: *Max 250K. No limiter *OSAP/scholarship/loans are not deducted from the max 250K you can borrow *Option to repay principal after completion of ALL training (med, residency, fellowships...etc). Any downside to RBC's plan? Any suggestion for credit card? Link to comment Share on other sites More sharing options...
ellorie Posted June 15, 2012 Report Share Posted June 15, 2012 That's the deal I got from RBC - it's pretty standard. TD, I believe, is not one of the banks that is known for medical student lines of credit, which could be why they are offering you a less appealing package. Link to comment Share on other sites More sharing options...
1234 Posted June 15, 2012 Report Share Posted June 15, 2012 TD requires principle payment one year after residency as well. You just have to talk to the right people, which are few and far between. The RBC plan is standard. It can also be converted to a Professional Personal Line of Credit after residency, which only requires interest payments indefinitely. Link to comment Share on other sites More sharing options...
holiday1001 Posted June 15, 2012 Report Share Posted June 15, 2012 my TD person said residency is covered under the interest-free period. however, fellowship, they couldn't say for sure (she even called up above and they had no clue) Link to comment Share on other sites More sharing options...
gt3rs Posted June 15, 2012 Report Share Posted June 15, 2012 Do they put it in writing that interest rate will stay at prime until 1 year after residency? I was reading in the other LOC thread that they don't for some reason. Can someone clarify? Also, what is the interest rate 1 year after you finish residency? Does it stay at prime or does it go up? What does it say in their contract? Thanks. Link to comment Share on other sites More sharing options...
DeeDoc Posted June 15, 2012 Report Share Posted June 15, 2012 OP, make sure you read the terms of repayment of the RBC contract. Link to comment Share on other sites More sharing options...
medhopefuls2016 Posted June 15, 2012 Author Report Share Posted June 15, 2012 OP, make sure you read the terms of repayment of the RBC contract. Thanks everyone. And Deedoc I will read the contract closely for sure. When it comes down to dealing the bank, my modus operandi is that banks always win in the end, no matter how good the deal seems to be. Link to comment Share on other sites More sharing options...
1234 Posted June 15, 2012 Report Share Posted June 15, 2012 Thanks everyone. And Deedoc I will read the contract closely for sure. When it comes down to dealing the bank, my modus operandi is that banks always win in the end, no matter how good the deal seems to be. What beneficial for the bank and beneficial to the client aren't mutually exclusive. Banks offer unsecured LOCs to future doctors, because it brings in a slight income over inflation with next to minimal requirement to hedge due to minimal risk. Link to comment Share on other sites More sharing options...
rmorelan Posted June 16, 2012 Report Share Posted June 16, 2012 What beneficial for the bank and beneficial to the client aren't mutually exclusive. Banks offer unsecured LOCs to future doctors, because it brings in a slight income over inflation with next to minimal requirement to hedge due to minimal risk. In this case they at best break even with the LOC (there are more costs that inflation here - the person doing all the professional loans has an salary, office, etc, etc). They do it for the future income they will get from the doctors - huge investment accounts etc. Link to comment Share on other sites More sharing options...
PremedGuy1 Posted June 16, 2012 Report Share Posted June 16, 2012 Comparison TD: *Max 200K. Limiter set at 60K/year max *Max 200K is what they allow. If you have OSAP/scholarship/other loans they deduct it from the max 200K you can borrow *Payment of principal beings one year after medical school at prime for interesting and 1% for principal Hey OP, can you clarify the statement in bold. Are you saying the rate is prime + 1%? Link to comment Share on other sites More sharing options...
NLengr Posted June 16, 2012 Report Share Posted June 16, 2012 If you are required to pay back principle during residency, change banks. That's a terrible deal. It's one thing to choose to pay it down, it's another thing to require it. Link to comment Share on other sites More sharing options...
holiday1001 Posted June 16, 2012 Report Share Posted June 16, 2012 TD does include residency. they have no idea about fellowship though. Link to comment Share on other sites More sharing options...
rmorelan Posted June 16, 2012 Report Share Posted June 16, 2012 TD does include residency. they have no idea about fellowship though. This all being said by the time you hit a fellowship you probably would already wanting to pay back that loan a bit anyway, no? Link to comment Share on other sites More sharing options...
Dr.Henderson Posted June 16, 2012 Report Share Posted June 16, 2012 OP: that's the RBC package. I have it right now. Link to comment Share on other sites More sharing options...
holiday1001 Posted June 16, 2012 Report Share Posted June 16, 2012 This all being said by the time you hit a fellowship you probably would already wanting to pay back that loan a bit anyway, no? heh. we'll see about that Link to comment Share on other sites More sharing options...
NLengr Posted June 16, 2012 Report Share Posted June 16, 2012 This all being said by the time you hit a fellowship you probably would already wanting to pay back that loan a bit anyway, no? Considering some fellowships, especially in the US, pay less than residents make in Canada, that might not be possible. Link to comment Share on other sites More sharing options...
holiday1001 Posted June 16, 2012 Report Share Posted June 16, 2012 just to clarifies, fellowships in Canada follow the PGY pay scale right? (ie the PGY number keeps counting up) Link to comment Share on other sites More sharing options...
Lactic Folly Posted June 16, 2012 Report Share Posted June 16, 2012 Fellowships funded by the ministry of health (such as those that are part of a RCPSC program) follow the PGY pay scale.. Fellowships funded through other means will vary in compensation, but usually are in the same range. Link to comment Share on other sites More sharing options...
rmorelan Posted June 16, 2012 Report Share Posted June 16, 2012 Fellowships funded by the ministry of health (such as those that are part of a RCPSC program) follow the PGY pay scale.. Fellowships funded through other means will vary in compensation, but usually are in the same range. There are probably opportunities for moonlighting though - after you write your exams. At that point you are after all a fully licensed doctor. Link to comment Share on other sites More sharing options...
rmorelan Posted June 16, 2012 Report Share Posted June 16, 2012 There are probably opportunities for moonlighting though - after you write your exams. At that point you are after all a fully licensed doctor. Oh and according to Ian Wong you do generally follow the PGY pay scale - although you are outside of that system so things like call schedule pay etc wouldn't apply. Link to comment Share on other sites More sharing options...
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