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

[oshaku]

ok, that sucks.

 

As a reminder of sorts I suppose - always, always, always make sure you are meeting with the professional student loan manager. Not just some regular loan officer. Each bank has one, and if you are not talking to that person you are talking to the WRONG person. You cannot just walk in the bank.

 

Basically ask prior to meeting (seriously ask):

a) how many professional student loans for medical school do you manage personally.

b ) right now tell me what the interest rate and max amount is for your professional med student loan.

 

They should IMMEDIATELY know the answers to both (no looking stuff up etc) and the answers should be a) a lot more than a few and b ) prime and 200K+. If they don't = wrong person.

 

While things loans are important to us in truth they are quite overall rare for the bank to deal with - thus there are often not really a good way to funnel the students to the right person - which probably is not at your branch. So they make mistakes. Then you have a problem.

 

I had the exact - and I mean exact - same problem with I originally went to my home TD branch - the bank I used for many, many years in June after I got my acceptance. It was horrible - and clearly the person didn't know what was going on (max loan was 30K, at prime +3, no free student stuff - and that was after 1 hr of her calling people and looking up things on their computer). I see then haven't fixed it in the past 6 years.

The advisor also told me something similar (50k, 4% interest, need co-signer). I booked an appointment ahead of time at TD asking to meet with a financial advisor to speak about med student line of credit. Guess the message never went through.

 

On the other hand, I randomly stopped by my current bank and asked about this stuff and they set me up with a meeting immediately with an advisor (who's on her first day at the job) who gave me most of the information I needed. Times like this I do love my bank (just not enough to overlook their fees).

[rmorelan]

The advisor also told me something similar (50k, 4% interest, need co-signer). I booked an appointment ahead of time at TD asking to meet with a financial advisor to speak about med student line of credit. Guess the message never went through.

 

On the other hand, I randomly stopped by my current bank and asked about this stuff and they set me up with a meeting immediately with an advisor (who's on her first day at the job) who gave me most of the information I needed. Times like this I do love my bank (just not enough to overlook their fees).

 

ha

 

no fees as a medical student.

 

No fees as a resident either for that matter.

[jmatt1122]

So take out a LOC at the end of the government loans (i.e. end of med school), and then just pay it back altogether? 

 

U of A's tuition is $12,000 (+$1000 in other fees). Pretty sure government loans cover that amount. 

 

Thanks a lot for your help! 

 

Nice, I'm jealous! Still though, unless Alberta's loan program is way better than Ontario's (which it may very well be...) you'll still need to cover living expenses. I know OSAP tops out at ~14k (unless the program is full-year). 

[rmorelan]

Nice, I'm jealous! Still though, unless Alberta's loan program is way better than Ontario's (which it may very well be...) you'll still need to cover living expenses. I know OSAP tops out at ~14k (unless the program is full-year). 

 

osap tops out by week not by school year so for medical students with the longer years you do get more than 14K You would get 21Kish for instance in clerkship year, and more like 17-18K in a regularly year - since there is a bursary component the amount matters

Edited May 14, 2015 by rmorelan

[advisor.nalin]

ok, that sucks.

 

As a reminder of sorts I suppose - always, always, always make sure you are meeting with the professional student loan manager. Not just some regular loan officer. Each bank has one, and if you are not talking to that person you are talking to the WRONG person. You cannot just walk in the bank.

 

Basically ask prior to meeting (seriously ask):

a) how many professional student loans for medical school do you manage personally.

b ) right now tell me what the interest rate and max amount is for your professional med student loan.

 

They should IMMEDIATELY know the answers to both (no looking stuff up etc) and the answers should be a) a lot more than a few and b ) prime and 200K+. If they don't = wrong person.

 

While things loans are important to us in truth they are quite overall rare for the bank to deal with - thus there are often not really a good way to funnel the students to the right person - which probably is not at your branch. So they make mistakes. Then you have a problem.

 

I had the exact - and I mean exact - same problem with I originally went to my home TD branch - the bank I used for many, many years in June after I got my acceptance. It was horrible - and clearly the person didn't know what was going on (max loan was 30K, at prime +3, no free student stuff - and that was after 1 hr of her calling people and looking up things on their computer). I see then haven't fixed it in the past 6 years.

 

Congratulations to all those who have been accepted!

 

 

 

You should always ask for an advisor who has had previous experience in handling professional lines of credit and also how long they have been with that bank or in banking industry. Most branch reps do not get training on these, and will quote you the features of a regular line of credit. Asking the two questions mentioned above will save you time in not dealing with an inexperienced rep.

 

 

 

Canadian students do not require a co-borrower unless you have bad credit, and the interest rate should be prime (2.85%). If you guys have any specific questions please do not hesitate to give me a call! 416-757-6780 ext 345

 

[makingfetchhappen]

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 the next phase - a real business relationship with a bank that potentially will follow you the rest of your life, and be of great service to you moving forward.

 

Don't chose a bank because they will give you the money immediately, but yeah chose a bank that will step up and meet your needs.

My account manager treats me like I am super important and basically jumps whenever I have a question or concern. It's hilarious because as a business account manager, he actually keeps a close eye on my business accounts and he knows that I do not make a tonne of money. I sure love him for pretending I'm a high value client though! It's a huge stress relief to have that level of service. 

[JohnGrisham]

So, what are some perks (i.e credit cards with good cash back?) that banks offering professional LOCs are offering to differentiate? 

Or has it been pretty much just whoever you subjectively like better and that will offer good, knowledgeable customer service?

[rmorelan]

My account manager treats me like I am super important and basically jumps whenever I have a question or concern. It's hilarious because as a business account manager, he actually keeps a close eye on my business accounts and he knows that I do not make a tonne of money. I sure love him for pretending I'm a high value client though! It's a huge stress relief to have that level of service. 

 

well not yet - that is the thing - you are a lawyer so they have no idea where you will need up. Service is everything

 

I want everyone who gets an LOC to feel them same way about their banker, and also more importantly be getting the advice and service they have earned The power balance should be tipped in the direction of the med student and not the other way around.

[rmorelan]

So, what are some perks (i.e credit cards with good cash back?) that banks offering professional LOCs are offering to differentiate? 

 

Or has it been pretty much just whoever you subjectively like better and that will offer good, knowledgeable customer service?

 

personally I find the latter to be way more important than the minor difference in the other stuff - the important things you get are free banking, and good 5K card that is mid tier at least. People endless debate the cards of course - when you do the math there differences are relatively minor

[makingfetchhappen]

well not yet - that is the thing - you are a lawyer so they have no idea where you will need up. Service is everything

 

I want everyone who gets an LOC to feel them same way about their banker, and also more importantly be getting the advice and service they have earned The power balance should be tipped in the direction of the med student and not the other way around.

In high school I was voted "most likely to be rich." I'm not joking, but I find it pretty funny!

 

And yes I totally agree, it's all about finding someone who is eager to please you.

 

For credit cards though, I'd recommend an RBC Avion Visa for the points. You don't need to bank somewhere to have a Visa there.

[Candie]

Does it make a difference at which branch I apply for the LOC - one closer to the med school or closer to where I am now? The former would feel strange, because it would be over correspondence right now. I'm guessing the only difference is convenience? 

[rmorelan]

Does it make a difference at which branch I apply for the LOC - one closer to the med school or closer to where I am now? The former would feel strange, because it would be over correspondence right now. I'm guessing the only difference is convenience? 

 

the person you are dealing with matters - you need to talk to a professional student loan manager. Often that is someone NOT at your local branch.

 

as for strange corresponding don't worry about that - this is the big leagues. You can set up a phone meeting, they send the paperwork to your home branch and you sign it there.

 

or meet them in person when you are checking out places to stay for the fall. Either way. My banker routinely came to the school to do business and we just met him there. My insurance agent from London visits us in Ottawa to do business. This is all new of course to all new grads but you have to start thinking a different way about your bank and other professionals that you are working with  

[oshaku]

Wellp, I just met with Scotia today and the difference was huge. I got the jump when I had questions treatment, which was so weird since I've never been treated like that. They were very professional and experienced in the matter. The advisor was definitely in sell mode.

 

Meeting with RBC on Wednesday and we'll see how that goes.

 

Does anyone have experience with BMO? They're the only other bank I might be interested in talking to but I also don't want to spend mow time in back meetings if it's not going to be extremely useful.

[RichardHammond]

I'm also looking to hear some feedback about BMO. Can someone chime in?

[rmorelan]

Wellp, I just met with Scotia today and the difference was huge. I got the jump when I had questions treatment, which was so weird since I've never been treated like that. They were very professional and experienced in the matter. The advisor was definitely in sell mode.

 

Meeting with RBC on Wednesday and we'll see how that goes.

 

Does anyone have experience with BMO? They're the only other bank I might be interested in talking to but I also don't want to spend mow time in back meetings if it's not going to be extremely useful.

 

ha, see the difference

[dassy]

Wellp, I just met with Scotia today and the difference was huge. I got the jump when I had questions treatment, which was so weird since I've never been treated like that. They were very professional and experienced in the matter. The advisor was definitely in sell mode.

 

Meeting with RBC on Wednesday and we'll see how that goes.

 

Does anyone have experience with BMO? They're the only other bank I might be interested in talking to but I also don't want to spend mow time in back meetings if it's not going to be extremely useful.

 

I'm also looking to hear some feedback about BMO. Can someone chime in?

 

I have BMO LOC, but I'm one of the few in the class. I had a very good experience with it. It really depends on getting a good advisor because they can sometimes do more for you than advertised. I made sure I went with a bank that counted residency/fellowship as still in school so I wouldn't have to start making payments. I also got the best credit card I could that has travel insurance built in to it AND no yearly charge as long as I'm 'in school'. BMO gives the normal $250K loan at the normal interest rate. (I also got the perk for free lounge visits at the airport!)

I bank normally with RBC, but I wasn't happy with the advisor they gave me and how inflexible he was. It's important to shop around not only between banks but between advisors!

[not my real name]

The advisor also told me something similar (50k, 4% interest, need co-signer). I booked an appointment ahead of time at TD asking to meet with a financial advisor to speak about med student line of credit. Guess the message never went through.

 

On the other hand, I randomly stopped by my current bank and asked about this stuff and they set me up with a meeting immediately with an advisor (who's on her first day at the job) who gave me most of the information I needed. Times like this I do love my bank (just not enough to overlook their fees).

That is pathetic. The person I spoke to had done med loans before, but double checked everything on their system too, and all of the info is written explicitly in their system (prime, 250k, no co signer if credit score is decent). Why other employees fail to find this info is baffling to me.

[amichel]

Honestly the incompetence is kind of staggering. I set mine up with a proper advisor, but had to sign the papers at my home branch. The lady there was so clueless and managed to screw everything up even though it was all already in the system.

 

Even though she knew it was a professional student LOC, and my med/dent advisor had left her multiple notes and all she had to do was sign the papers, she insisted I didn't get overdraft protection and free accounts. So I showed her their website which explicitly said that I did. I know they don't deal with these accounts often but when it's on your public website? Do a little research. She said it was taken care of but I was actually charged account fees for several months because she STILL managed to screw it up. My advisor here was awesome and got that all refunded, but still.

 

Anyways, moral of the story is be certain the people you are working with have a clue, haha.

[trojjanhorse]

It all comes down to the service you get from your financial advisor. I shopped at every bank and spoke to few advisors from each bank. I even signed up with 2 advisors and canceled shortly after as their level of service just plummeted after signing the papers. Just keep looking around until you find someone who is good at what they do and actually care about making you happy. I find that the senior advisors have a great portfolio as is and don't try as hard. There are many loopholes and nifty tricks you can take advantage of if you are aware of them... but you'll need someone to point them out to you, like a good advisor. I think I've already mentioned that I went with CIBC. My financial advisor started a thread in this subforum answering questions. His user is adivisor.nalin

 

If you guys have questions for me, please feel free to ask.

[rmorelan]

Honestly the incompetence is kind of staggering. I set mine up with a proper advisor, but had to sign the papers at my home branch. The lady there was so clueless and managed to screw everything up even though it was all already in the system.

 

Even though she knew it was a professional student LOC, and my med/dent advisor had left her multiple notes and all she had to do was sign the papers, she insisted I didn't get overdraft protection and free accounts. So I showed her their website which explicitly said that I did. I know they don't deal with these accounts often but when it's on your public website? Do a little research. She said it was taken care of but I was actually charged account fees for several months because she STILL managed to screw it up. My advisor here was awesome and got that all refunded, but still.

 

Anyways, moral of the story is be certain the people you are working with have a clue, haha.

 

In their defence there really are a ton of different products, procedures etc and it makes sense they wouldn't really understand med students. Plus our LOCs really are crazy compared to anything else they do (so....they get 250K without any colateral or cosigner and they have no job at present.....at prime you say....and free everything else.....for how many years.....upwards of 10+ years huh....so maybe we will make money off of them 15 years from now? ahhh ok.... and when they are done though we get rid of the LOC or up the rate right? No....they keep it for life. At prime. I see. and every other bank is doing this.....they are, ok.....)

[amichel]

In their defence there really are a ton of different products, procedures etc and it makes sense they wouldn't really understand med students. Plus our LOCs really are crazy compared to anything else they do (so....they get 250K without any colateral or cosigner and they have no job at present.....at prime you say....and free everything else.....for how many years.....upwards of 10+ years huh....so maybe we will make money off of them 15 years from now? ahhh ok.... and when they are done though we get rid of the LOC or up the rate right? No....they keep it for life. At prime. I see. and every other bank is doing this.....they are, ok.....)

And I get that. But it was already set up. With a note on now to finalize it left for her.

[JohnGrisham]

It all comes down to the service you get from your financial advisor. I shopped at every bank and spoke to few advisors from each bank. I even signed up with 2 advisors and canceled shortly after as their level of service just plummeted after signing the papers. Just keep looking around until you find someone who is good at what they do and actually care about making you happy. I find that the senior advisors have a great portfolio as is and don't try as hard. There are many loopholes and nifty tricks you can take advantage of if you are aware of them... but you'll need someone to point them out to you, like a good advisor. I think I've already mentioned that I went with CIBC. My financial advisor started a thread in this subforum answering questions. His user is adivisor.nalin

 

If you guys have questions for me, please feel free to ask.

Can you elucidate some of those loopholes and things that we should look for?

[RichardHammond]

So I just called the toll free number for BMO to ask about a LoC and the rep told me I need a co-signer despite me explaining that their own website says it is not necessary. I asked to be directed to a financial adviser at a branch near UWO and she insisted I just continue to set up this loan on the phone with her instead because the adviser would tell me to call the toll free number anyway... I told her I want to talk to someone more knowledgeable about medical student LoCs and she finally forwarded me to another number... and that number was out of service... :mad:

 

Frustratedly, I just walked to a branch in downtown Toronto and was able to discuss things with someone there. So I was told about the usual terms like 250k, prime interest rate, LoC available till at least PGY2, etc. However, when I asked about perks, I was just told they don't do that kind of stuff. The only thing they would offer is a student bank account with no monthly fee.

 

So my question is, how does one go about negotiating perks? Is it just the luck of the draw with how nice (or how much power) the person you're dealing with has? Also, do perks even matter really?

[rmorelan]

So I just called the toll free number for BMO to ask about a LoC and the rep told me I need a co-signer despite me explaining that their own website says it is not necessary. I asked to be directed to a financial adviser at a branch near UWO and she insisted I just continue to set up this loan on the phone with her instead because the adviser would tell me to call the toll free number anyway... I told her I want to talk to someone more knowledgeable about medical student LoCs and she finally forwarded me to another number... and that number was out of service... :mad:

 

Frustratedly, I just walked to a branch in downtown Toronto and was able to discuss things with someone there. So I was told about the usual terms like 250k, prime interest rate, LoC available till at least PGY2, etc. However, when I asked about perks, I was just told they don't do that kind of stuff. The only thing they would offer is a student bank account with no monthly fee.

 

So my question is, how does one go about negotiating perks? Is it just the luck of the draw with how nice (or how much power) the person you're dealing with has? Also, do perks even matter really?

 

they don't really matter - I think people focus on them more just because a lot of the loans sound similar and really people don't know what else to focus on. I mean they can be nice of course but still not the main point of the exercise.

 

If you want anything you may find they simple don't offer that but still the best approach is to know what the competition is offering and to go in with that. They all know what everyone is doing so it isn't a big surprise - tell them to match etc and go from there.

 

by the way the LOC available to at least PGY 2 isn't what you want - you want it until post fellowships - which could be a good 4-6 years post PGY2. Don't settle for that!

 

this is what I was taking about with respect to service again - if you are feeling like you aren't getting the respect etc then fine - that bank just lost a doctor as a customer. It's just business. There is a reason the scotia and RBC seem to come out ahead in this game - even though the loans are similar between all the banks. They are better at the service side in general (results may vary).

[trojjanhorse]

Can you elucidate some of those loopholes and things that we should look for?

I think loopholes is the wrong term to use. As a novice, I think of them as loopholes because I get the "oh, that's clever, didn't know I could do that...", but it's all perfectly legal. I'm pretty happy with my set up and I suppose you can find an advisor that can show you the ropes and answer questions above and beyond your expectations. Just shop around and you'll see what I mean by this. I'm erring on the side of caution with the details as I'm not sure what I can say. But with all honesty, it all comes down to a good advisor.