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

[oshaku]

I know but that's what I was told by the Montreal rep. I must have asked her to verify that three times before I ran out of ways of subtly voicing my incredulity. What if you wanted to take some low-paying international work?

 

CIBC does the same thing though.

 

hm.. I'll verify that with Scotia.  

 

You can get RBC in Montreal to waive the vip fee for a year and if you wait till July they'll throw in a free ipad mini.

 

That being said, be critical of what they're delivering for 125$ a year.

 

I was told if I want the iPad mini, then the first year VIP fee would not be waived.  

 

At RBC, any amount owed in excesxs of $50,000 is repayable over a 15 year amortization, $25,000 to $50,000 is 10 years and anything under $25,000 its 5 year repayment - these are blended payments (principle and interest) at prime rate

 

Thanks for the clarification about repayment.  

[...]

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[xkittens]

I went to TD bank, I wasn't impressed. 

Does anyone know LOC specialists in Toronto?

[qszwdxefc]

I started contacting RBC, Scotia, and TD regarding LOCs. For TD, you'll need to find the "small business advisor" at the branch nearest to your med school and they should be knowledgeable about the medical LOC.

 

Since people don't really talk about TD here I'll list some details I got from TD:

- $250000

- Interest is prime as with other banks

- After you finish you can repay 1% of the principle each month or convert to a professional LOC (they said this can be discussed later)

- No cosignor

- TD platinum card waived for the first year

 

Going to try and bargain with them since I have an all-inclusive account (all you need is to keep $5000 in your chequing account)

[Tacrolimus]

Can you get a LOC midway through med school.. like beginning of 3rd year, or does it have to be done at the start? I do not need it right now because of government student loans, but I don't want to close the doors completely. 

[rmorelan]

Can you get a LOC midway through med school.. like beginning of 3rd year, or does it have to be done at the start? I do not need it right now because of government student loans, but I don't want to close the doors completely.

 

You can but generally there is still no reason not to get it now even if not needed - for starters some times rarely people have trouble getting it for various reasons - that's the kind of thing you would want to know about now rather than 1/2 way through.

[rmorelan]

I started contacting RBC, Scotia, and TD regarding LOCs. For TD, you'll need to find the "small business advisor" at the branch nearest to your med school and they should be knowledgeable about the medical LOC.

 

Since people don't really talk about TD here I'll list some details I got from TD:

- $250000

- Interest is prime as with other banks

- After you finish you can repay 1% of the principle each month or convert to a professional LOC (they said this can be discussed later)

- No cosignor

- TD platinum card waived for the first year

 

Going to try and bargain with them since I have an all-inclusive account (all you need is to keep $5000 in your chequing account)

If you use the loc beyond 5k that 5000 in your chequing is costing you 150 a year approx in interest. I hate those min balance things

[rmorelan]

I don't disagree that it's important.  My point is that banks are always improving the plans.  And by the time you reach the point where you are required to repay the loan the available options will likely have changed drastically.

Yeah I would have to agree with that - I mean I have watched these for at least 7 years and during that time the rules have changed vastly (nearly doubling the loc, reward plans, repayment changes, rate changes....) no bank would want to lock in rules as the market is too fluid - they need to make adjustments to remain competitive. They would be squashed by their competition otherwise.

[rmorelan]

That seems unlikely since I've heard from multiple sources that Scotia goes for a ten year repayment, while 3% monthly plus interest would make it under three years. That may be the case for their regular student LOC, but I doubt is the case with the medical student LOC.

Yeah is not for sure - as I hold the repayment terms in my hand. 10 years is the term

[qszwdxefc]

If you use the loc beyond 5k that 5000 in your chequing is costing you 150 a year approx in interest. I hate those min balance things

 

Totally agree. Luckily for me I have a good sum of money already in there along with family support for things like food/rent so I'm getting the LOC as more of a "just in case" thing. Can't invest said amount of money because the last time I did that in undergrad I lost about 3k in bursary money lol.

 

Also the TD rep I'm talking with just told me that with the all-inclusive account they will waive the first year off ANY card (pending TD visa approval). Aeroplan infinite privilege here I come . After that I can switch back to the infinite travel card which comes with the all inclusive account.

 

Also I learned of 1 drawback with the TD LOC: funds can be accessed during residency but NOT during fellowships. "Although if more money is needed this can be further discussed at the end of residency" whatever that means.

[rmorelan]

Totally agree. Luckily for me I have a good sum of money already in there along with family support for things like food/rent so I'm getting the LOC as more of a "just in case" thing. Can't invest said amount of money because the last time I did that in undergrad I lost about 3k in bursary money lol.

 

Also the TD rep I'm talking with just told me that with the all-inclusive account they will waive the first year off ANY card (pending TD visa approval). Aeroplan infinite privilege here I come . After that I can switch back to the infinite travel card which comes with the all inclusive account.

 

Also I learned of 1 drawback with the TD LOC: funds can be accessed during residency but NOT during fellowships. "Although if more money is needed this can be further discussed at the end of residency" whatever that means.

 

hmm actually that is kind of odd - during fellowships is often a kind of important time to access your LOC (you often have to move for the fellowship, it may be in a high cost area (TO, Vancouver, the US....the higher the quality of the fellowship the more likely it is in a high cost city), not in position yet to make repayments, sometimes you have to do multiple fellowships, near the end of your fellowships you may want to use the LOC to help your final move get settled prior to the staff phase...).

[ayang55]

Does anyone know if the eventual loan repayments are taxable? For example, hypothetically, if I make $200,000 before tax and pay back $10,000 per year, do I get taxed on the entire $200,000 or just on the remaining $190,000?  

[rmorelan]

Does anyone know if the eventual loan repayments are taxable? For example, hypothetically, if I make $200,000 before tax and pay back $10,000 per year, do I get taxed on the entire $200,000 or just on the remaining $190,000?  

 

I am afraid it is just like any other non business, non government loan - there are no tax advantages to it. The interest is not tax deductible.

 

that is another reason why people use say OSAP first and then the LOC after.

 

It makes sense though it wouldn't be really - for starters there is no way to know if you really used the LOC for your education (and often parts of it aren't - like taking trips etc).

[ayang55]

I see...thanks for the info

[xkittens]

I literally had an advisor say this to me today:

why are you going from bank to bank and being so picky? You should apply now you don't have much time! Don't wanna be stuck without tuition money when school starts!!
 

No, I did not transform into the hulk and break things *I know you were wondering*

[rmorelan]

I literally had an advisor say this to me today:

why are you going from bank to bank and being so picky? You should apply now you don't have much time! Don't wanna be stuck without tuition money when school starts!!

 

No, I did not transform into the hulk and break things *I know you were wondering*

 

ahh high pressure sales. Got to love it.

 

I mention a lot about the service aspect of LOCs on this forum - and that is a part of it. Look I know the LOC is important for the money sake but a lot of the LOCs are really so very similar that it is hard to tell them apart. So yeah getting the loan is important but this is more than that - you need a banking relationship with someone that has your trust because they earned it. Some one that treats you as what you now actually are - a professional (a junior one but still a professional) in a professional to professional relationship. That will help you in many many ways going forward (I am a resident and even still for me it has helped greatly and yeah profitably as well) - and worth way more than a particular credit card blah, blah.

[kayyy]

Hi everyone,

 

I just wanted to let you guys know about my experience with Nalin. I've dealt with other financial advisors in the past and the most important advice I can give you is to deal with someone who knows what they are doing. Unfortunately many don't because they rarely deal with professional student locs and it will reduce your chances of getting approved. Nalin was very knowledgeable. He was always on top of things and maintained constant communication with me throughout the application process. He was always prompt with his responses anytime I had a question. Everyone's financial situation is going to be different but he will work with you to get the best possible loc and rates. I highly recommend his services as he made the entire process hassle free.

[MD2015]

I literally had an advisor say this to me today:

why are you going from bank to bank and being so picky? You should apply now you don't have much time! Don't wanna be stuck without tuition money when school starts!!

 

No, I did not transform into the hulk and break things *I know you were wondering*

This is a red flag against using such person and starting a relationship.

[rmorelan]

This is a red flag against using such person and starting a relationship.

 

absolutely. This is a 250K professional loan - you shouldn't feel like you are at a used car lot with "Uncle Sall" trying to sell you a "nice reliable automobile". High pressure sales tactics are a major warning sign.

[leviathan]

Scotia now offers me 275k plus the Passport visa gold AND the AMEX gold with no fees. That's not standard but was able to work out a deal. 

[kuzco]

Scotia now offers me 275k plus the Passport visa gold AND the AMEX gold with no fees. That's not standard but was able to work out a deal. 

 

Did you meet with a Scotia representative in Toronto by any chance? I'm planning to see the Scotia rep in Hamilton someone posted in this thread about. I wonder if its worth the trip to Hamilton!

[MrSchwartz3]

What VISA card did you guys decide to go with for Scotiabank? I just got approved for my LOC yesterday with them and I have to pick one. 

[ParkourParkour]

What VISA card did you guys decide to go with for Scotiabank? I just got approved for my LOC yesterday with them and I have to pick one. 

 

try and get a combo of the Visa Infinite Momentum and Amex Gold. the Momentum gets you good cash back on groceries/gas and the Amex Gold is better than the Visa Gold Passport for travel points (ie. 4x points on groceries, gas, entertainment and dining out).

[pinkcardigan]

Hi everyone,

 

I just came back from my meeting with a Scotiabank LOC rep, and she informed me that in order to receive the full amount of $200k for medical school, I would need to close any external credit cards (i.e., TD, RBC). If not, the amount I am approved for for each credit card will be deducted from my amount that I will be approved for my LOC.

 

1. Is this common practice? 

2. Did anyone else also get 200k for Scotiabank, and then up to 75k approval in residency?

 

Thank you!

[oshaku]

Hi everyone,

 

I just came back from my meeting with a Scotiabank LOC rep, and she informed me that in order to receive the full amount of $200k for medical school, I would need to close any external credit cards (i.e., TD, RBC). If not, the amount I am approved for for each credit card will be deducted from my amount that I will be approved for my LOC.

 

1. Is this common practice? 

2. Did anyone else also get 200k for Scotiabank, and then up to 75k approval in residency?

 

Thank you!

 

that's what they offered me, but I did not hear about the need to close other credits cards.  I'll be meeting with Scotia again next week and will make sure to check that