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

[House,M.D]

It's a limit of $50K/yr for the four years of med school (200 total), then potentially up to $75K more once residency begins, you just have to mention it around that time you need it. Also the 50K limits are flexible.

 

That's what I thought. Thanks for confirming. The Scotia website doesn't actually list the amounts.

[snacks]

That's what I thought. Thanks for confirming. The Scotia website doesn't actually list the amounts.

 

I noticed that just now! I have a paper copy of what they offered. I guess it gives them some leeway to tailor their offers to different branches, provinces, etc?

[lisait'syourbirthday]

Just want to confirm, are guys referring to the ScotiaGold Passport Visa + Scotiabank Amex Gold? Also, was this in Ontario?

 

I'd be curious to know if anyone else pulled off getting both cards with fees waived for all 4 years.

Just want to confirm, are guys referring to the ScotiaGold Passport Visa + Scotiabank Amex Gold? Also, was this in Ontario?

 

I'd be curious to know if anyone else pulled off getting both cards with fees waived for all 4 years.

Yes, I got the visa gold passport and the Amex Gold at Scotiabank with fees waived on both cards for all the years until I'm a full fledged doctor (so med school and residency). It was in Ontario. I got the Amex gold card with fees waived in exchange for giving up the $5000 overdraft protection on my visa gold passport, which is fine, because I have no use for a 5000 overdraft protection

[rmorelan]

I noticed that just now! I have a paper copy of what they offered. I guess it gives them some leeway to tailor their offers to different branches, provinces, etc?

 

basically - also as discussed sometimes the amounts are actually less etc because people are holding on to other forms of credit etc.

 

I have never found the limits with scotia particularly troublesome - there is usually some flexibility, and also really you don't want to spend ANYWHERE near the 50K amount a year - besides the now interest payments that would start, you would lose some flexibility for later (throwing OSAP onto your loan, more serious purchases as you start residency, emergency funds........). Everyone loves freedom but personally the limit is so high it doesn't matter, and the total amount with Scotia is the highest amount given ultimately.

[cndeh]

I've heard from someone I know he got a 2nd LOC with a different bank.

 

Firstly, I didn't even know that it was possible.

 

Secondly, why would anyone even envision graduating with that amount of debt??

[rmorelan]

I've heard from someone I know he got a 2nd LOC with a different bank.

 

Firstly, I didn't even know that it was possible.

 

Secondly, why would anyone even envision graduating with that amount of debt??

 

ahhhhhh

 

to say I am surprised would be an understatement unless there is additional factors at play (another co-signer, some form of equity....).

 

They do run yearly checks to make sure you haven't obtained additional credit. For both their protection and yeah yours as well.

[futurefamilydoc]

Good news for LOC's (but not good for the economy I imagine), the BoC just announced the interest rate is going down to 0.5%

http://www.thestar.com/business/2015/07/15/bank-of-canada-cuts-interest-rate.html

[House,M.D]

Good news for LOC's (but not good for the economy I imagine), the BoC just announced the interest rate is going down to 0.5%

http://www.thestar.com/business/2015/07/15/bank-of-canada-cuts-interest-rate.html

 

Doesn't your LOC get locked in at the interest rate you initially signed for?

[snacks]

Doesn't your LOC get locked in at the interest rate you initially signed for?

 

Nope. Your interest fluctuates with Prime, through the bad times and the good.

[photato]

Did anyone with a Scotia LOC add on the life and disability insurance or is there a better/cheaper provider?

[futurefamilydoc]

Did anyone with a Scotia LOC add on the life and disability insurance or is there a better/cheaper provider?

For most people the best deal is to go with the OMA policies

[snacks]

Did anyone with a Scotia LOC add on the life and disability insurance or is there a better/cheaper provider?

 

My dad convinced me to take it for now...You can cancel it any month you choose and it's theoretically free until you start carrying a balance. Eventually I'll look into insurance more thoroughly.

[ieatpremeds]

Good news for LOC's (but not good for the economy I imagine), the BoC just announced the interest rate is going down to 0.5%

http://www.thestar.com/business/2015/07/15/bank-of-canada-cuts-interest-rate.html

Unfortunately banks will benefit and likely only pass a 0.1% cut to us

[Bambi]

Better than nothing. 

[Bambi]

My dad convinced me to take it for now...You can cancel it any month you choose and it's theoretically free until you start carrying a balance. Eventually I'll look into insurance more thoroughly.

It is an unnecessary expense, so let your dad pay. If you die in debt, the bank collects nothing. If you insist upon life insurance, buy 10 yr term from Transamerica, it is cheaper. If you name your father beneficiary and die, he receives the death benefit which he does not need to share with the bank. Regarding disability insurance, I took it out in 4th year as the discount carries through forever when taken as a student, I believe it was RBC Insurance.

[rmorelan]

Better than nothing. 

 

True - and also likely not really a problem from the Bank of Canada's point of view - they have a bigger problem - they want to stimulate the economy but means making credit easier BUT they are also simultaneously worried that the housing market is over heated and homes thus are markedly overvalued (cheap mortgages encourages people to buy homes - and more important more expensive ones - when the rates adjust those same people may be seriously in trouble and that can suddenly cause a crisis and harm the entire economy). We are already in a recession - the economy is already fragile - not a lot of wiggle room.

 

They want to tread carefully - they also knew of course EXACTLY how the banks would respond - they probably don't want mortgages to fall all that much really.

 

Overall this announcement is not exactly good news - sure we all get 0.1 drop in our LOCs - so the best case we save what 250 dollars a year approx (0.1 of maxed out 250K loan). Sure it is better than nothing but then as a resident going into contract negotiations for raises etc the government will (and perhaps rightfully so)  what to curtail any raises due to the poor economy and lower tax revenue thus. This will very likely cost us a lot more on the flip side than we would ever save on the LOC itself (and it is very rare to have a maxed out LOC). Not to mention what it will do to physician income (those raises they won't get will eventually mean that there well be raises YOU won't get down the line, as we are all just getting raises on top of the prior rates).

 

You have to basically stop thinking we are immune to the economy as a whole - we are not

 

Plus (hehehehe I love economics) the lower interest rate means no one wants Canadian dollars on the international market (you need Canada dollars to buy Canadian bonds - but now the interest rate on Canadian bonds in lower, why would you want them?) If no one wants something then it is then worth less - and than means the Canadian dollar will fall in value - which is exactly what happened today after the announcement - a big sudden drop. That means all imports will cost more (we have to buy imports with Canadian dollars - which are less valuable). It also means those international trips will be more expensive - flights, etc, etc, etc...... Since gas is also bought on the international market in non Canadian dollars that will bump up in price likely as well. Those costs will raise - things often med students etc care about.

 

Oh well - recessions suck. Hopefully we can get back on track soon.

[Bambi]

Excellent summary! 

[Tacrolimus]

So I talked to Scotia today and applied for the LOC. My advisor said she could only waive the fees for one of the cards, and not both (i.e. Amex Gold and Passport Gold Visa). How did you guys convince them to waive both? I mentioned potentially reducing LOC by $5k or something, and she said she will look into it. 

[Economist]

So I talked to Scotia today and applied for the LOC. My advisor said she could only waive the fees for one of the cards, and not both (i.e. Amex Gold and Passport Gold Visa). How did you guys convince them to waive both? I mentioned potentially reducing LOC by $5k or something, and she said she will look into it. 

Tell him your friend's advisor would do it and see how he responds. I didn't even have to ask for the amex, he just did it automatically. I even upgraded my passport visa to visa infinite momentum, all 4 years waived.

[House,M.D]

Tell him your friend's advisor would do it and see how he responds. I didn't even have to ask for the amex, he just did it automatically. I even upgraded my passport visa to visa infinite momentum, all 4 years waived.

 

Any advantage to getting the visa infinite momentum? I noticed that it's 4% cash back, whereas the passport visa is simply a travel points card.

[Nitrix]

Any advantage to getting the visa infinite momentum? I noticed that it's 4% cash back, whereas the passport visa is simply a travel points card.

 

Infinite Momentum >>>>>>>>>>>>>> passport visa

[House,M.D]

Infinite Momentum >>>>>>>>>>>>>> passport visa

 

I looked into it, and they would only waive the 1st year fees. They also require income verification, and as a med student, I will have zero income

[photato]

I was automatically given both without asking. I was told that both are included as part of the LOC now, but that change isn't official yet.

[Tacrolimus]

I was automatically given both without asking. I was told that both are included as part of the LOC now, but that change isn't official yet.

 

Tell him your friend's advisor would do it and see how he responds. I didn't even have to ask for the amex, he just did it automatically. I even upgraded my passport visa to visa infinite momentum, all 4 years waived.

 

Ah, okay. Thanks for the information! I don't understand why they can't just inform all of their advisors via email or something. The variability is annoying. 

[LavalMed]

Tell him your friend's advisor would do it and see how he responds. I didn't even have to ask for the amex, he just did it automatically. I even upgraded my passport visa to visa infinite momentum, all 4 years waived.

Could you tell us what advisor from what branch offered you that? I would sound better to have a name to mention when negotiating with Scotia than saying "some friend got that deal at some other branch".

 

Thanks