Hockeynut Posted June 19, 2014 Report Share Posted June 19, 2014 So, do many students hold a LOC with a bank separate than the bank in which they do their own personal banking? Currently, I have all of my accounts, credit card, etc with BMO but their LOC is less impressive than some of the other banks, such as Scotia. Is it annoying to be dealing with separate institutions? Or does it work just fine? Any advice is appreciated! I've banked with TD all my life, set up my LOC last week with RBC. RBC had a tonne of incentives for my med school, beyond those on their website, so ask! (TD told me their interest rate was prime+1 and weren't willing to change it to be competitive, happened at two branches in different cities so I went elsewhere. Oh also they weren't willing to bump me up to an unlimited transaction account with the fees waived.) It's not/hasn't been a pain as of yet, just had to set up an account with the other institution. Quote Link to comment Share on other sites More sharing options...
ikillreid Posted June 19, 2014 Report Share Posted June 19, 2014 So, do many students hold a LOC with a bank separate than the bank in which they do their own personal banking? Currently, I have all of my accounts, credit card, etc with BMO but their LOC is less impressive than some of the other banks, such as Scotia. Is it annoying to be dealing with separate institutions? Or does it work just fine? Any advice is appreciated! I got my LOC with Scotia, but I'm keeping my chequing account with TD for now. I'd prefer to consolidate into one bank, just because it involves logging into fewer websites to stay on top of things, but Scotia doesn't let you set up personal payees unless you jump through some hoops with documentation AND it needs to be a recurring payment situation. I just can't stand surcharges associated with e-mail transfers and whatnot... irks me like no other lol. Quote Link to comment Share on other sites More sharing options...
chanman82 Posted June 19, 2014 Report Share Posted June 19, 2014 There are a few things in life where one should not cheap out as it influences every aspect of life: Food, Mattress and shoes. In my opinion those three things can totally change the way someone lives/feels and considering the amount of time you spend on/in each of these things they are worth investing in. I can't imagine anyone regretting buying a nice comfortable mattress or a comfortable pair of shoes. @Jaybird What happened to all the Queen's/Tri-colour stuff in your signature? Truer words have never been spoken...I splurged on a "Luxury Pillowtop" Posturepedic mattress (same model as in Fairmont hotels) and it is fantastic! Quote Link to comment Share on other sites More sharing options...
rmorelan Posted June 19, 2014 Report Share Posted June 19, 2014 I got my LOC with Scotia, but I'm keeping my chequing account with TD for now. I'd prefer to consolidate into one bank, just because it involves logging into fewer websites to stay on top of things, but Scotia doesn't let you set up personal payees unless you jump through some hoops with documentation AND it needs to be a recurring payment situation. I just can't stand surcharges associated with e-mail transfers and whatnot... irks me like no other lol. actually that really is the one thing scotia sucks at. TD was much better. Since as a student both banks charge no fees I did keep accounts open at two banks. Not really all that important but it let me compartmentalize my finances a bit. Quote Link to comment Share on other sites More sharing options...
Sarvish Posted June 20, 2014 Report Share Posted June 20, 2014 I got my LOC with Scotia, but I'm keeping my chequing account with TD for now. I'd prefer to consolidate into one bank, just because it involves logging into fewer websites to stay on top of things, but Scotia doesn't let you set up personal payees unless you jump through some hoops with documentation AND it needs to be a recurring payment situation. I just can't stand surcharges associated with e-mail transfers and whatnot... irks me like no other lol. Exactly the same reason I'm going to keep my TD account open, it's such a small thing but it's so horribly annoying. I've also been a TD customer all my life but went with Scotia for my LOC. Quote Link to comment Share on other sites More sharing options...
doc.tea Posted June 20, 2014 Report Share Posted June 20, 2014 I visited several banks but I decided to go with RBC because it offered what I needed in terms of LOC and daily banking. Although RBC may not offer the highest LOC right now (personally, I think 250K is plenty), that may be subject to change. Like many have stated, the interest rate is prime +0%. If you're still debating on which bank to go with, I'd recommend seeing the medical student specialist at each bank. For those in downtown Montreal and interested in RBC, I went to see Johnnie Vu and he was super helpful. Quote Link to comment Share on other sites More sharing options...
Med2018__ Posted June 22, 2014 Report Share Posted June 22, 2014 I've banked with TD all my life, set up my LOC last week with RBC. RBC had a tonne of incentives for my med school, beyond those on their website, so ask! (TD told me their interest rate was prime+1 and weren't willing to change it to be competitive, happened at two branches in different cities so I went elsewhere. Oh also they weren't willing to bump me up to an unlimited transaction account with the fees waived.) It's not/hasn't been a pain as of yet, just had to set up an account with the other institution. I'm in the same situation as you (banking with TD) and have been offered prime for the LOC. I was wondering if you could list the incentives RBC offered you? Quote Link to comment Share on other sites More sharing options...
Boo_The_Monster Posted June 26, 2014 Report Share Posted June 26, 2014 To anybody interested in banking with Scotia in Alberta, they are excellent. I'm presently in Edmonton and contacted Scotia in Ontario about setting up an LOC. They couriered the paperwork to my nearest branch and I met with Ingrid Vanelle. Even though I won't be continuing with this branch come September as I would be in Ontario, the service was exceptional. She walked me through every aspect of the paperwork and gave me enough time to read everything for myself, again. She never rushed me, even though our appointment likely went overtime and was generally patient, friendly and supportive. She also shows you how interest will be calculated on the account, if you have questions, and gives you advice on what to be careful with. She even explained the different possible charges I might face with my Visa and recommended how I could avoid them - e.g. Setting up pre-authorized deposit from my chequing to my Visa each month. When I asked if this could be drawn directly from the LOC, she made a note to look into it. I never felt pressured at any point. Even when it came time to looking at insurance, I said I would like to take a bit to think about it and compare it with the OMA plan. she was very supportive of that and gave me all the information I would need to make an educated decision. I signed up for insurance on my Visa with them since I presently have that on my TD Visa as well, but if OMA's insurance can cover me on that, I may opt out. All in all, a really comfortable and smooth experience. She is a caring and professional individual and I was impressed. After reading horror stories on other threads, I was expecting the worst but pleasantly surprised. I went alone and felt comfortable with that when I left. If you're going to be banking in Edmonton and need a LOC, I highly recommend Ingrid at the bank near the Corona LRT station Quote Link to comment Share on other sites More sharing options...
leviathan Posted June 26, 2014 Report Share Posted June 26, 2014 It can be in some cases - if you are using the resident interest relief program for instance. Also the interest rate matters - right now the tax deduction is a fixed percentage of the rate but the interest rate itself is tied to prime. Unlikely but if prime rose high enough for some loans then the balance would swing towards keeping the OSAP loan. Lastly you consume the LOC room - for some it would be better to have the flexibility of say 50K more on the LOC for emergencies vs perhaps getting close to maxing it out. I am not seeing any other reasons and except for the first on I don't think those reasons are very strong. Yeah the interest relief program would be helpful except I'm married and our family income is too much to qualify for that. Our advisor is aware of that of course too, or maybe she just forgot. Quote Link to comment Share on other sites More sharing options...
rmorelan Posted June 27, 2014 Report Share Posted June 27, 2014 Yeah the interest relief program would be helpful except I'm married and our family income is too much to qualify for that. Our advisor is aware of that of course too, or maybe she just forgot. I didn't think the Resident Loan Interest Relief Program was dependent on income? Is there a family income component to that? I didn't think they listed anything like that last time I read it over Quote Link to comment Share on other sites More sharing options...
leviathan Posted June 27, 2014 Report Share Posted June 27, 2014 Oh maybe not, but is that for Ontario? I'm not in Ontario. Quote Link to comment Share on other sites More sharing options...
rmorelan Posted June 27, 2014 Report Share Posted June 27, 2014 Oh maybe not, but is that for Ontario? I'm not in Ontario. this is why it is important to state the province always - ha, so many programs, so many rules Yeah that one is an ontario rule. Which province are you in? Quote Link to comment Share on other sites More sharing options...
alpaca Posted June 28, 2014 Report Share Posted June 28, 2014 Does anyone know what opportunities exist for people who can't get approved for a line of credit alone and do not have anyone who could cosign? Quote Link to comment Share on other sites More sharing options...
jmatt1122 Posted June 28, 2014 Report Share Posted June 28, 2014 Does anyone know what opportunities exist for people who can't get approved for a line of credit alone and do not have anyone who could cosign? That's rough. None that I'm really aware of. I remember UofT being gung-ho on them never allowing finances to be a barrier for a student, though. Maybe they, and other schools, have funding allotted for individuals with no other options. Quote Link to comment Share on other sites More sharing options...
rmorelan Posted June 28, 2014 Report Share Posted June 28, 2014 Does anyone know what opportunities exist for people who can't get approved for a line of credit alone and do not have anyone who could cosign? very messy - the big question then is why your credit is so low you cannot apply. I have walked a couple of people through that with the help of their banks and it involved maxing everything else - osap, bursaries, support from where ever else, and a deep effort to repair the credit. In the end an LOC was extended after much work that let them finish. Bottom line is you do have to PROTECT your credit - it is a horrible thought that bad credit can block you but with the newer high loan amounts I can see why the banks are a bit more cautious. Quote Link to comment Share on other sites More sharing options...
leijona88 Posted July 25, 2014 Report Share Posted July 25, 2014 Just thought I would add my experiences as well. I ended up going with RBC, mainly because I like that they make the entire LOC available up front. Having recently purchased a house, it's nice to have the money available in case I have to do any emergency repairs on the house, without worrying about an annual limit. Also they did not require a cosigner. I initially applied for the LOC at TD, since I have my mortgage there. They said they would require a cosigner "because of the mortgage and other things." Which I thought was strange because the mortgage is secured, if I don't make my payments they take the house, which was appraised at the amount of the mortgage, and med school LOC generally are never secured. But anyways, I didn't bother arguing, just brought my business to RBC lol. Would have been nice to get more than the first year fee waived for the Avion card but that's not a huge deal. Quote Link to comment Share on other sites More sharing options...
lokiki Posted July 26, 2014 Report Share Posted July 26, 2014 Does anyone know what opportunities exist for people who can't get approved for a line of credit alone and do not have anyone who could cosign? I was denied a line of credit initially through one bank, going through a med student specialist, everything. Reapplied, still denied. I went to Scotiabank, was approved in 3 days. I just signed the paperwork today. Hopefully I'll have the LOC available next week. Still, THAT was a headache I never want to go through again. I'm not sure if the "professional student specialist" I used just didn't know what was going on or what. I went though about a week of trying desperately to figure out how I was going to pay for school (you would not believe the things I was considering). UBC has a dedicated specialist to help with this sort of thing. It's her job, and she was really awesome. She really calmed my nerves about the whole thing. I've spent almost my whole life worried about money in various capacities and I am so ready for that stage of my life to be over. I am still paranoid (I don't actually have access to the funds yet) but I am sleeping at night. Quote Link to comment Share on other sites More sharing options...
zstansfi Posted August 27, 2014 Report Share Posted August 27, 2014 I can't seem to access the Google doc attached to this thread. Anyone else having issues? Quote Link to comment Share on other sites More sharing options...
airborne Posted January 21, 2015 Report Share Posted January 21, 2015 Is it true that the prime rate will fall? Quote Link to comment Share on other sites More sharing options...
meddog Posted January 21, 2015 Report Share Posted January 21, 2015 I can't seem to access the Google doc attached to this thread. Anyone else having issues? I'm in the same boat. Anyone know how we can access it? Quote Link to comment Share on other sites More sharing options...
leviathan Posted January 22, 2015 Report Share Posted January 22, 2015 Is it true that the prime rate will fall? So my extremely simplistic view of the situation is that the prime goes up when the economy is doing better. Since it's continuing to improve I'd expect it to only go up from here. That and the fact that it's at almost at an all-time low right now and doesn't have very much room to go anywhere besides up. Quote Link to comment Share on other sites More sharing options...
ralk Posted January 22, 2015 Report Share Posted January 22, 2015 So my extremely simplistic view of the situation is that the prime goes up when the economy is doing better. Since it's continuing to improve I'd expect it to only go up from here. That and the fact that it's at almost at an all-time low right now and doesn't have very much room to go anywhere besides up. There's some truth to that, though it's not necessarily true in all cases. A stronger economy will usually have higher rates and a weaker economy usually has lower rates. However, you can have a mediocre economy and a high prime rate if inflation gets out of control (see the early 80s). The prime rate generally follows the overnight lending rate set by the Bank of Canada, a rate which just got (unexpectedly) cut by 0.25% yesterday. That somewhat reflects the state of the economy, namely the low oil prices which are expected to hurt Canada's economy, namely in Alberta and Newfoundland. More importantly, there are fears from the Bank of Canada that this weakness could set off a collapse in the housing market, which is the ticking time bomb of the Canadian economy. So, while the economy has been doing better lately, it hasn't exactly been doing great either, and there's room to fall. And, when the Bank of Canada's rate was lower during the recession, the prime rate was lower than it is today. That said... the prime rate may not fall this time. It's a small change that wasn't anticipated and could be reversed within the year. TD has already stated that they won't be changing their prime rate and I haven't seen much out of other banks (including the one that sets the rate for my LOC) that indicates they'll be lowering their prime rates either. In any case, it'd be an odd situation for major banks to have different prime rates. For now, it looks like there'll be no change. If, however, the Bank of Canada's rate stays as it is for a while, it might go down slightly. Quote Link to comment Share on other sites More sharing options...
Sarvish Posted January 22, 2015 Report Share Posted January 22, 2015 I think you can still stay optimistic and hope for a change in the prime rate but it may take a little longer than usual due to the suddenness of yesterday's change. TD's statement saying they won't change it is disconcerting though Quote Link to comment Share on other sites More sharing options...
leviathan Posted January 23, 2015 Report Share Posted January 23, 2015 Well bring on the lower rate! My bank account would sure be happy. Quote Link to comment Share on other sites More sharing options...
jmatt1122 Posted January 29, 2015 Report Share Posted January 29, 2015 RBC dropped to 2.85%. Hah, I'll take the 0.15% savings... although I'm not sure that'll make a massive difference. RBC-HealthcareSpecialist 1 Quote Link to comment Share on other sites More sharing options...
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