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lines of credit...PRIME RATE


Guest TabeshDDS

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Guest TabeshDDS

Hey guys,

 

I know UofT has a deal with scotia bank that lends us money at prime + 0.5%....i've found someone who'll lend up to $150,000 at prime, which in the long run saves you a ton of cash. if you're interested, email me and i'll give you all the details.

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Guest JMTM

For all interested Royal's dent line of credit lends at prime for up to $150 000 with no annual limit. Check out the website.

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Guest pearlywhitesBC

I went to RBC and they said that they would give me the $150,000. The problem was that they wouldn't give me a good idea of what rate I would be paying once the LOC got converted to a loan. The guy I spoke with said that it could be up to prime + 5%! Then he went on with some little speech about how they would try and do the best they could because they would want to keep my business - so they could even go as low as prime + 3.5%. What a rip! I don't know if it was just the guy that I was talking to - he didn't seem to know much about the professional student LOCs. Maybe I was just talking to the wrong person. Anyone had any better experiences with RBC?

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Guest Ian Wong

As mentioned in the Med Students forum, you need to go to the branch that regularly deals with professional students. They are usually the only ones knowledgeable enough to access the Medical/Dental Student Professional LOC's. Many of the other banks are clueless, and will offer you a generic deal that includes a painful interest rate. If you contact your dental school, they should be able to put you in contact with the bank branch where previous med/dental students have gotten their LOC's. You should all be getting prime rate. :)

 

Ian

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Guest per te

The limit may be 150,000 but most people have previous government student loans and RBC takes that amount away from your total credit limit.

 

~*per te*~

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Guest 1molar

Thanks guys! all this info is so helpful...i am so naive about all the financial stuff...so what other "catches" are involved when applying for these loans?

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Guest bcdentalgirl

At Royal, if you are in BC, ask for Claire Gilbert. She is the dental student go-between. You should be getting 160,000 at prime + 0 and several current students are getting the same rate after grad (you have to push a bit for it - the after grad prime).

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Guest LestatZinnie

hi bcdentalgirl:

 

how's it going? I noticed that the UBC tuition for class of 2008 is slightly lower than for 2007. Did they lower the tuition for your year (2007) as well? thx

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Guest Ian Wong

Please start a new thread if you are asking about stuff that isn't related to LOC's. Let's try to keep this thread on-topic please. :)

 

Thanks!

 

Ian

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Guest Savedby

if you have a LOC, are you paying the monthly interest or are you waiting after school to pay the principal and accumulated/compounded interest?

and if interest was not paid monthly, does anyone know how much interest it will cost a loan of $120K after 4 yrs (assuming the prime rate stays at 4%)?

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Guest pearlywhitesBC

Hey BCdentalgirl!

 

Which RBS branch does Claire Gilbert work at?

 

Thanks!! I'm going to call her up - I had found an LOC that charged prime while I was in school, but haven't yet been able to negotiate prime AFTER graduation.

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Guest predent2003

Hey peralywhitesBC,

 

I have applied my LOC with Scotia. They quote me prime during school and prime or just prime plus 0.5 after school if I can pay it off within 10 years.

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Guest 1molar

Hi guys, I was looking into the LOC from Scotia...when I called, I was told that the maximun LOC they provide is a mere $100,000...that is just enough for the fees! What sort of LOC have you guys been able to get from Scotia(in Toronto)?

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Guest per te

Hi 1molar,

 

I think it depends on your financial situation but I believe Scotia offers around $125K (more or less) for dental students through the Scotia Professional Plan for Students. Why don't you try contacting someone in Toronto, especially if you will be going to UofT.

 

~*per te*~

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Guest Guyver03

I just talked with Bill Wilson of Point Grey branch here in Vancouver. He said the max amount is $31,500 a year at prime rate, so that comes to about $125k. After graduation, the interest rate remains at prime rate, unlike other banks. You can pay back the principal anytime you want without penalties. However, he said that they can't increase the amount to cover UBC's tuition costs.

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Guest depump

Hi everyone, it seems pretty bizzare with how banks are treating LOCs with different quotes and different interest rates with the same bank. If it helps anyone here, I finished completing the paperwork with Scotiabank here in Calgary, and they can borrow me 45 K per year. Like Guyver said, there is a cap of 31500, but I was able to get the extra bit by some more paperwork. I dunnno what exactly the extra paperwork is, but it involved my parents signing as a gurantor. My parents signed a basic agreement stating that if I, for some reason take off with the 45 K boot it to Mexico w/o paying a cent back, they are liable for the debt I owe Scotiabank. See, the weirdest thing now is, Guyver, did Bill Wilson give you a quote for prime only? B/c I'm dealing with prime + 0.5 %! Has anyone else that dealt with Scotia have a different rate as well? I know how much the tuition sucks at UBC and how frustrating it is to go to different banks to get LOCs, but it seems like Scotia has been the best so far. Give me a shout in my inbox and I'll send you more info about my loan with Socitabank. Hope this helps!

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Guest Guyver03

When I talked with Bill, he did say that if my total loan exceed $60k, then I would need a guarantor. But since he said the max amount per year is $31,500, that would happen in the second year of study. As for repayment after graduation, Bill said that since they have to keep up with their competitors, the interest rate after graduation stays at prime rate, so +0%. That was the quote he gave me today afternoon depump, so I suppose if you hassle your branch in Calgary a bit, maybe they will remove that annoying +0.5%. If not you could always say that the Vancouver branch or other competitor gives a better rate.

 

One more thing, Bill asked me if I have done any research on other banks, I said BMO is prime +0.5%, whereas CIBC is prime +0%. Use that as a leverage, depump.

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Guest 1molar

Thanks for the info! I did some more research and I think that I will be applying for LOC with the Royal Bank...that's because they provide a $150,000 limit at prime...and there is no annual maximum! Also, whereas Scotia has a 6 month grace period for payback after graduation, Royal bank allows a 12 month grace period after graduation...nice to have the extra 6 months until we start paying back...:D

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Guest pearlywhitesBC

It's so weird that everyone gets different rates etc from RBC. I think that they offer prime for when you're in school, but did you make sure that you will be getting prime AFTER you graduate? The guy that I spoke with quoted rates as high as prime +5% (but said he could try and give me a deal with prime +3.5%. OK whatver. I'm thinking I should try another branch because maybe he was just clueless?)

 

And don't forget - any money that you get from the government as a student loan will get deducted off of your $150,000 total (so if you get 10,000 a year then you can only get up to 110K from the bank).

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Guest Guyver03

I just got an email reply from Pat Scrase from Scotia, she's the main person who knows all details of professional student loan. In June, the director for student package is coming to Vancouver to talk with UBC and make changes to the existing plan. Not to worst but to better. After graduation, you have a 6 months grace period, but during this time, you have to sit down with them and talk about consolidation. Pat said it can extend up to 18 months with interest only. As for lending more, she said that it is possible to do so at prime rate, but we would need a guarantor. One more thing, it only takes 5-7 days between signing the agreement and receiving the money, I would suggest anyone who's shopping for loan to hold it for a while, because so far I think Scotia is the best in their professional student.

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Guest 1molar

The lady from Royal bank told me that she was "pretty sure" that I would be getting prime after graduation...and surprisingly enough, she said that my previous loans will have no effect on the $150,000 limit...but I don't know how sure she was about that...I won't believe anything until I see it in writing....:smokin

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Guest Ian Wong
The guy that I spoke with quoted rates as high as prime +5% (but said he could try and give me a deal with prime +3.5%. OK whatver. I'm thinking I should try another branch because maybe he was just clueless?)
That's a bogus deal. Find someone else, preferably the main person at the branch where all of dental students have negotiated their LOC's (this is usually the branch that is located closest to the dental school).

 

Your interest rate on your LOC should remain prime until the LOC is paid off; there should be no increase in the interest rate after graduation, nor at any other time. Don't budge on that point.

 

What WILL happen, however, is that at some negotiated fixed point in the future (ie. after graduation, or some time after that), your LOC will require you to start paying some of your principle back as well. In other words, you are no longer making interest-only payments each month, but now are expected to make interest+principle payments each month.

 

That means that your monthly payment does indeed go up, but not because the interest rate got higher, but rather because you are starting to pay back some of the actual debt itself, in addition to the interest generated on that debt.

 

Ian

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Guest per te

1molar,

 

I know for sure that Royal Bank takes into account your previous loans. I would call back and check with another person because this one lady I spoke to over the phone seemed to think that the credit limit isn't affected by gov loans either... but that's just not the case...

 

~*per te*~

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