Jump to content
Premed 101 Forums

Lines of Credit for Medical Students (Scotia is the best option)


Recommended Posts

  • Replies 2.1k
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

Honestly,    Thank you to pm101 for helping the mandem out. You all are so great. This sharing of information takes the power away from the banks and puts back in our hands. They were trying to play

I contacted RBC and scotiabank recently and this is a comparison: 1. Credit cards annual fee: both top of the line cards, mostly similar/comparable perks with Scotia having slight upper hand. Dif

true - it isn't the money though.   It is the entire point of this process - to make sure you are at a bank that has your back. Everyone will give you prime and enough money. You are trying to enter

Posted Images

Along with a LOC (at prime), some people are able to get free chequeing and drafts, so it might worth asking for these features as well.

 

I am just wondering, what kind of credit cards can we reasonably ask for?

 

Most get automatically with this a pretty good card from the major players - travel cards or cash back. Basically cards that are in the 100 dollars a year range for their fee with the fee waved. Scotia Gold card is an example.

 

Limit is usually set at 5K. Not an issue because the LOC is there to cover things anyway.

 

and yeah most places do give free cheques, wave the account fee etc. You know on one hand it sometimes seems almost silly - all of us that ultimately will be doing very well have all these incredible fee deals etc. Still that doesn't mean you shouldn't take them :)

Link to post
Share on other sites

Does anyone on here have experience with a credit union? I've been wanting to take my banking more local for a while and now seems like the perfect opportunity. Currently my plan was to go to the big banks, find out what's available, and then go to a local credit union and see to what extent they'd be able to meet me in matching it. Any advice?

Link to post
Share on other sites
Does anyone on here have experience with a credit union? I've been wanting to take my banking more local for a while and now seems like the perfect opportunity. Currently my plan was to go to the big banks, find out what's available, and then go to a local credit union and see to what extent they'd be able to meet me in matching it. Any advice?

 

Go and ask them! The major banks compete so much for med trainees banking that they make pretty well no money on us until much later. As such, I highly doubt a credit union will be able to sweet the pot. However, if you want to support a local credit union and they can offer you a similar deal - why not!

Link to post
Share on other sites
Does anyone on here have experience with a credit union? I've been wanting to take my banking more local for a while and now seems like the perfect opportunity. Currently my plan was to go to the big banks, find out what's available, and then go to a local credit union and see to what extent they'd be able to meet me in matching it. Any advice?

 

I tried to see my local credit union, but no credit unions offer LOC for professional programs specifically. Your luck may vary but probably best to stick with the big players and go back to a credit union when in practice.

Link to post
Share on other sites

Did anyone have their RBC Avion fee waived for more than one year? If not, I think Scotia is a much better deal. Both cards give you 1 point per dollar but Scotia waives their annual $100 fee while RBC still charges $120. And Scotia gives 4 points per dollar spent at some merchants!!

 

I just called the RBC Avion people and asked for my one-time $120 fee waive and will get that credited to my next bill. They told me no one gets more than a one-year fee wave.

Link to post
Share on other sites
Did anyone have their RBC Avion fee waived for more than one year? If not, I think Scotia is a much better deal. Both cards give you 1 point per dollar but Scotia waives their annual $100 fee while RBC still charges $120. And Scotia gives 4 points per dollar spent at some merchants!!

 

I just called the RBC Avion people and asked for my one-time $120 fee waive and will get that credited to my next bill. They told me no one gets more than a one-year fee wave.

 

The Avion does not compare exactly to the Scotia Passport.

Earning points is the same, however point redemption on flights is not.

 

Avion also offers 2x the points at certain resturants and you earn bonus points when you shop online at the RBC Rewards eMall.

 

Hope this helps!

Link to post
Share on other sites

How exactly does a LOC work? I understand that you get certain allotments of $X, but is that money directly deposited into a bank account of your choice or kept in an account at TD, RBC, etc.? Also, are you able to use a Mastercard not with those banks and use the LOC to pay it off? Reason I ask is that I already have points with a Credit Union MC but would never get the $200,000 LOC from them in a million years.

Link to post
Share on other sites
How exactly does a LOC work? I understand that you get certain allotments of $X, but is that money directly deposited into a bank account of your choice or kept in an account at TD, RBC, etc.? Also, are you able to use a Mastercard not with those banks and use the LOC to pay it off? Reason I ask is that I already have points with a Credit Union MC but would never get the $200,000 LOC from them in a million years.

 

You are given an account from which you can draw funds up to the amount allocated. You can choice to take as little or as much as you chose - you start paying interest on anything you take out.

 

You can keep credit at other banks (I did) - obviously they would prefer you moved everything to the LOC bank :) What they can do is reduce the max LOC you can get by the whatever you have in terms of credit elsewhere.

 

You could easily transfer money from the LOC bank to the credit union to pay off anything you like.

Link to post
Share on other sites
You are given an account from which you can draw funds up to the amount allocated. You can choice to take as little or as much as you chose - you start paying interest on anything you take out.

 

You can keep credit at other banks (I did) - obviously they would prefer you moved everything to the LOC bank :) What they can do is reduce the max LOC you can get by the whatever you have in terms of credit elsewhere.

 

You could easily transfer money from the LOC bank to the credit union to pay off anything you like.

 

For example, if I take out $1000 and prime is 3%, does $30 per month accumulate (thus I owe $1030 after month 1, but not obligated to pay it off)? But come residency, I am obligated to pay the $30 interest payment?

Link to post
Share on other sites
For example, if I take out $1000 and prime is 3%, does $30 per month accumulate (thus I owe $1030 after month 1, but not obligated to pay it off)? But come residency, I am obligated to pay the $30 interest payment?

 

3% per year so the monthly interest on $1000 is $2.50

 

The interest must be paid during medical school and during residency (Scotia deducts it automatically from your LOC. If you're with RBC you need to make the payments yourself). So essentially your available LOC "decreases" by the amount of interest you pay.

 

You don't begin repaying the LOC until 1 year post residency. So after you complete residency you're given a grace period of 12 months. At that point your LOC locks and changes from an LOC to a loan - so you can no longer take out money. You make monthly payments based on an amortization period (typically 10-15 years) and settle it back.

 

I believe there is the option of converting the LOC (the professional student LOC) to a personal LOC instead of locking it into a loan but I haven't inquired about that yet.

Link to post
Share on other sites
3% per year so the monthly interest on $1000 is $2.50

 

The interest must be paid during medical school and during residency (Scotia deducts it automatically from your LOC. If you're with RBC you need to make the payments yourself). So essentially your available LOC "decreases" by the amount of interest you pay.

 

You don't begin repaying the LOC until 1 year post residency. So after you complete residency you're given a grace period of 12 months. At that point your LOC locks and changes from an LOC to a loan - so you can no longer take out money. You make monthly payments based on an amortization period (typically 10-15 years) and settle it back.

 

I believe there is the option of converting the LOC (the professional student LOC) to a personal LOC instead of locking it into a loan but I haven't inquired about that yet.

 

Yup there is - you can convert it to a standard LOC if you like etc (or so I have been told).

 

Nothing stopping you from paying it back in residency if you like as well - or at least some of it. Some just don't so they can have more interesting lives during residency. Others attack it vigorously.

Link to post
Share on other sites
Yup there is - you can convert it to a standard LOC if you like etc (or so I have been told).

 

Nothing stopping you from paying it back in residency if you like as well - or at least some of it. Some just don't so they can have more interesting lives during residency. Others attack it vigorously.

 

Ah good- I like the idea of not having to make immediate payments in a loan like manner if, for some reason, I end up in unforseen financial difficulties (unemployed doctor? haha).

Link to post
Share on other sites
Yup there is - you can convert it to a standard LOC if you like etc (or so I have been told).

 

Nothing stopping you from paying it back in residency if you like as well - or at least some of it. Some just don't so they can have more interesting lives during residency. Others attack it vigorously.

 

Attack vigorously is the way. :P At least, it will be my approach. :)

Link to post
Share on other sites
Ah good- I like the idea of not having to make immediate payments in a loan like manner if, for some reason, I end up in unforseen financial difficulties (unemployed doctor? haha).

 

Ha - hopefully a null issue one year out :)

 

Even if it did happen I am sure they would work something out anyway. Spent a lot of time trying to get you as a customer by that point.

Link to post
Share on other sites
RBC Avion is only waived for 1 year while in school. You then receive $39/yr off the premium as part of the student package.

 

My representative never told me of the $39 off the premium. I've been paying $120 every year. Can RBC correct this?

Link to post
Share on other sites

Hello, I am relatively new to premed101. I am currently shopping around for a medical line of credit and was wondering if anyone had any experience with MD Physician Services. I believe they use National bank; however, I was wondering what the difference was if I went right to National bank instead of MD services. They repeatedly said they do not let the medical students over borrow, so I was wondering if anyone had any experience with this and if they could possibly explain it?

Thanks! :)

Link to post
Share on other sites
Are there any benefits of going with MD services though?

 

MD Physician Services is owned by the CMA. We are not a bank. We do have our partnership with National Bank which is only available through MD Advisors.

 

Aside from Budgeting we are there to help you with Financial Planning through medical school into residency and beyond. The basis of what we do is financial planning taylored to Physicians since we are owned by the physicians in Canada. All of the services are offered free of charge to CMA members.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...