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lines of credit...PRIME RATE


Guest TabeshDDS

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Guest depump

Hi everyone, yea, just to add to the bizzareness of it all, I found that with a gurantor at Socita Bank that if you visit the Public Notary Services for signing the gurantor papers you can tell your gurantor to sign an unlimited aggreement of which you can borrow as you need. It's true with what Guyver has said, with all my processing time including the increased LOC from 31 500 to 45 K for me, it took less than 2 weeks to process including Socita sending back my VISA and life insurance coverage for the borrowed amount!

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Guest 1molar

You were right per te...I talked to another person at Royal bank and was told that previous loans do have an effect on the amount of LOC that one is eligible for...ok then, that means that I can't get any more than $130,000 for the four years...that sucks! I was hoping to get at least a $140,000...so can I apply for more loans from other places(banks, government) or is having a guarantor the only way that I can get more money from RBC...

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Guest depump

Guarantor, I think if I am not mistaken 1molar, they are basically asking the same questions as the ones for the national student loan. I am pretty confident that there was a line for your parents income tax. As for the nitty gritty details like how many cars your family owns and their assets such as houses and investments, I think the only one that may have appeared was the house and mortgage. Other than that, it was basically a one page document that I dropped off for my dad to fill out, take to a Public Notary Services, stamp it, pay the lawyer 20 bucks for the 2 minute service and that was that.

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Guest Guyver03

Hmm, I thought the bank only need someone to vouch for you. I didn't know the bank would check on the guarantor's equity and mortgages, and that you need a lawyer to notorize it.

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Guest Guyver03

Oh yeah, I forgot one more thing. You know how we can all apply for UBC bursaries when we are borrowing from banks and government. Does anyone know what the magic number we have to reach before applying for bursaries? And also, when do we actually apply for bursaries?

 

Also, I remember with Scotia bank LOC, you have to pay $3 a month for your account. Does anyeone know which other bank has the same LOC as Scotia bank, but without the monthly fee? Scotia allows you to borrow $31,500 a year, with prime rate for pre- and pro-graduation.:D

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Guest sn0w0wl

Hi guys,

 

I spoke in person with RBC today in Saskatoon, and I just wanted to give everyone a head's up to make sure your info is current, because the rep told me that the plan changed just last month (they are trying to stay competitive)!!

 

What I was told (though I'm med, not dent) was:

-150K max (no annual limit, split it up as you like)

-interest=prime (undergrad+residency, though I neglected to ask about interest during repayment time)

-no banking fees

-start repaying principle 12mo after grad (ie. residency for us)

-automatic monthly interest payments can be set up

-no deductions for student loans or credit cards (but I was asking about this DURING school, as I'm debt-free so far)

-life insurance is optional (quoted $0.79/$1000 used)

-can get a VISA gold (good perks) or classic II (rewards program)--no annual fees for either

 

I normally bank with CIBC, but I think I'll switch to RBC because RBC offers a higher max (CIBC=125k) and interest stays at prime during residency (not prime+1 after first year as CIBC quoted).

 

The RBC website is vague (they want you to come in and talk) and they gave me the number for a dedicated med/dent line: 1800 807-2683.

 

Happy hunting!

sn0

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Guest pearlywhitesBC

Hi,

 

I was interested in hearing more about RBCs LOC after reading the last post so I called them again this morning.

 

The lady I spoke with gave me pretty much the same information - free VISA, limit of $150,000 etc. etc. But she did tell me that the limit of $150,000 INCLUDES government student loans. I've heard this from every person that I've spoken with at RBC so either sn0w0wl was lucky or the person that they spoke with was mistaken.

 

The interest rate they gave me was prime while I'm in school, but they said that they wouldn't set a rate for after graduation until AFTER graduation. I asked the lady if she could give me an estimate but she said that it was basically up to the branch that you were working with. Has anyone signed up for one and been able to lock in a rate for after graduation? I'm trying my hardest to be pushy everywhere I go but it's not working. I think I need to take a mean pill. Maybe I'm being too nice. :)

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Guest physiology

I'm a incoming med student at UBC, but to those in BC, go through George Tsonis at the Broadway/Cambie branch. If you are going to go through him, private message me, I can tell you what's he's like (good guy overall)

 

I mean it's all laid out in this brochure so I don't see how the bank rep could change it all that much.

 

Private me if you want more details but in a nutshell:

 

1) 150 k - NO restrictions (student loans not held against you) and you NO annual max

 

2) VISA, Student Price Card, free bank account

 

3) Interest at prime during med/dent school; Prime during residency and prime to be negotiated during fellowship (depends on the fellowship)

 

4) Principal repayments one year after graduation from residency/fellowship

 

5) No co-signer

 

6) Life insurance = 12 cents/$1000 (you can go to a private third party, or have no life insurance at all, it's up to you)

 

7) you get this CD that tells you which scholarships you're eligible for

 

8) As a added bonus, RBC also offers these $5000 scholarships to incoming first year med/dental students.

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  • 4 weeks later...
Guest 1molar

Hey guys, I thought I would let you know that I was able to get $150 000 LOC from RBC in Toronto and that my previous loans(OSAP as an undergrad) had no effect on this limit whatsoever. This plan really is great...no charge, no annual limit, VISA, prime rate and excellent service. The person in charge of the student loans at RBC made it all seem so easy...

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Guest HOTfuchsia

I'm confused with what each bank is offering. I had appointments last week with Royal Bank and CIBC, and they both said prime plus 1%. I even told them that I knew of people just getting prime, and they said no. I asked if they were sure, and they called their head office, who said prime plus 1% is the rate. So, how is this possible??? BMO is giving me just prime, so I think I just have to go with them. What do you guys think? Did you go to the actual banks in TO...because they told me it doesn't matter???

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Guest 1molar

Hey HOTfuchsia,

 

I went to the University and Dundas branch of RBC in Toronto and talked with Kevin Fernandes. I think that bank employees at other branches may not have full information regarding professional student loans. So I would suggest you to go this particular branch to get the full and correct information. Good luck!

 

1molar

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Guest dmdgirl
I'm confused with what each bank is offering. I had appointments last week with Royal Bank and CIBC, and they both said prime plus 1%. I even told them that I knew of people just getting prime, and they said no. I asked if they were sure, and they called their head office, who said prime plus 1% is the rate. So, how is this possible???

 

 

Hotfuschia: are you talking about after graduation or during school?

 

I'm borrowing from RBC and from their Agreement form, they have under Charging you interest:

 

"We charge you interest on all amounts you borrow on your line of credit, and on all overdue interest. So long as you are a student in attendance at an accredited post secondary educational institution, we charge you interest at a rate of our Prime Rate plus 1%"

 

"On the date you sign this Agreement, our Prime Rate is 3.75000% and the interest rate we charge you is 3.75000%"

 

Both of these were under the same "charging you interest" area. Why does one say prime plus 1% and the other says just prime to be paid during dental school? I asked my banker and he says just look at the 3.75% cuz thats what i will be paying...but I dont believe he knows that much about loans for professional students.

 

So are people really getting prime + 0% after graduation too? Only Scotia?

 

Isnt it set in the agreement what everyone will pay? and like someone said before, we can't know the rate after graduation UNTIL AFTER graduation, so whatever the banks decide, we could be paying up to prime rate plus 5%

 

I'm very confused now. Any inputs?

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Guest pearlywhitesBC

Yep, it seems to be a wee bit confusing with RBC.

 

I know many people have said that they are paying prime while they're in school (which I think is standard) so that's not surprising.

But many people have said that they are getting prime after they graduate as well....but the thing is that I don't know if they have this in writing. By now I must have spoken with at least 6 different people from RBC and they all say that the LOC gets converted to a personal loan after graduation and that they won't decide on the interest rate until I get there.

 

to any of you who have prime AFTER graduation at an insitution other than Scotia - do you have it in your agreement (i.e. in writing)?

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Guest HOTfuchsia

I meant getting just prime while in school (3.75%), rather than prime plus 1% (4.75%). RBC was offering me prime plus 1% while in school, but I just spoke with another lady at RBC (who deals more with actual dentists and doctors, than students) who said that prime could be given to me. So, definately sign up for just prime, and nothing more! I have heard the same thing as others have posted with getting prime after graduation.....its possible, but won't be known till graduation...so its not in writing. RBC also mentioned that most people convert their loans to personal loans after graduation and that getting prime depends on your situation then...how bright is your future...how much you are making...how good were you with your payments, etc. So, I think thats why they don't guarantee prime...its individually based....and they don't want to get screwed over.

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Guest pearlywhitesBC

Yeah, I can understand their viewpoint.

 

On the other hand, I don't want to be the one getting screwed over! It would be nice to talk to some RBC customers who have graduated in the last couple of years to see how they worked things out. That would probably be the best indicator.

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  • 3 weeks later...
Guest Kicoati

Hey,

 

How's everyone doing re getting their LOC? Does anyone know which branch of CIBC and Scotia in Toronto are best to go to negotiate professional student plans? If you know who's the right person to talk to can you let me know?

 

Also, I think I read somewhere about UofT will help pay monthly interest??? (or just my wishful thinking?)

 

I have not yet received my acceptance package, does it include bursary application info?

 

Questions specially for current UofT dents, approximately how much expense should I expect annually (tuition, books, rent, food, photocopy... etc)? Is UofT generous with bursaries? I know it differs from person to person, but I would like to know a ballpark range.

 

Thanks!!!

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Guest 1molar

I have a LOC with the Royal Bank. They seem to have the best deal really. U of T does pay the interest and that comes in the form of UTAPS I believe.

 

I didn't get any bursary info application in my acceptance package. I think that UTAPS is automatic and doesn't need to be applied for. Perhaps, we might be able to apply for other bursaries but I am not aware of those.

 

In regards to the fees, there is a summary of that on the U of T website. Generally, you are looking at $25,000 for first year, $24,000 for second year and $20,000 for third and $20,000 for the fourth year. In addition to the fees, the books cost about $2000 for the first year and far less than that in subsequent years. At least that's what I have heard from various sources. Depends on the person but maybe count $200 per month for food, $150 for miscellaneous expenses...or is that too much?

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Guest LestatZinnie

200 for food...150 for miscellaneous....wow pls tell me how you do it.

 

my living expenses is probably closer to 600-700 per month including phone, internet, food, misc purchases, etc. I'd be very interested to know how one can get by with less than $10 per day for food because even cooking myself and not go out that's almost impossible. thanks

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Guest physiology

Hello DMDGirl,

 

I have the EXACT same agreement and I was confused as well.

 

The reason why they're charging you the "prime + 1%", but actually charging prime is that they're borrowing the agreement from the ones they give for regular student loans.

 

Also, when you set up your online banking, it tells you what your interest rate is (3.75% right now). So no worries.

 

If anyone has any questions, about the RBC thing, please ask. I'm in Vancouver.

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Hey guys,

 

regarding the Line of credit, can we use it for anything, such as financing for a car or does it have to be for dental school directly?????? I was just wondering.....

 

thanks

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