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

[rmorelan]

Why stop at 2?

 

if it was raining money I probably would want a bag more than an umbrella. Ha, how rich do you have to be to say to yourself I really don't want all this money to land on me.

 

Are you trying to do so for non-Canadian schools?

 

Otherwise you should have zero reason to even consider this hypothetically.

 

That said, its strongly discouraged and any good banker wouldn't allow this. That said, i have heard of people doing exactly as you said - go to 2 banks on the same day and hope for the best. It worked out for them.

 

The problem is, if you somehow had 400k+ in LOC usage...and something happened? Get sick? Injured? Could lead to a lot of problems.

 

really - they managed to get two actual signed LOCs? That is really supposed to be impossible as I understand it (and would be discovered in any case with the yearly checks). if so someone better be patching up that hole in the system pronto (the interest rates are based on risk - if people are doing more risky things like having massive, massive loans then risk is higher and we would collectively have to pay more interest. I don't want to pay more interest )

 

if you could do it then the sick/injured could just be dealt with using insurance. That actually isn't a problem (use critical illness insurance for a lump sum to buy out the loans in case of serious illness). 

Edited April 12, 2016 by rmorelan

[JohnGrisham]

if it was raining money I probably would want a bag more than an umbrella. Ha, how rich do you have to be to say to yourself I really don't want all this money to land on me.

 

 

really - they managed to get two actual signed LOCs? That is really supposed to be impossible as I understand it (and would be discovered in any case with the yearly checks). if so someone better be patching up that hole in the system pronto (the interest rates are based on risk - if people are doing more risky things like having massive, massive loans then risk is higher and we would collectively have to pay more interest. I don't want to pay more interest )

 

if you could do it then the sick/injured could just be dealt with using insurance. That actually isn't a problem (use critical illness insurance for a lump sum to buy out the loans in case of serious illness).

Yah I was extremely skeptical as well and thouhgjt it wasn't possible but they provided proof...and then my faith in the banking system crumbled(already little to begin with).

[rmorelan]

Yah I was extremely skeptical as well and thouhgjt it wasn't possible but they provided proof...and then my faith in the banking system crumbled(already little to begin with).

 

I agree - again shouldn't be possible. That is a major flaw in the system there or some sort of a glitch. Some would be working out how that happened so it didn't happen again.

 

Banks have been burned before on LOCs - people vanishing with 250K for instance right before school starts. Ha, they have a lot on the line with these and not really much short term profit.

[MDLaval]

I think that getting 2 LOCs is actually pretty possible. However, after the 1st annual check done by the 2 banks there might be some explaining to do and I would expect it shouldn't be possible to keep both of them... IMO.

[LeBronto2019]

Anyone have experience with TD? 

[rmorelan]

I think that getting 2 LOCs is actually pretty possible. However, after the 1st annual check done by the 2 banks there might be some explaining to do and I would expect it shouldn't be possible to keep both of them... IMO.

 

I actually asked the bankers about that - will be interested in what they say. ha - I will still cling to the idea that it is supposed to be impossible with effect credit checks (which also would show if another bank has even recently asked about your credit etc). A lot of opportunities for fraud otherwise (not necessarily in just LOCs).

[hypersomniac]

I dont understand why ppl say scotia is better than RBC? scotia's total limit for the first 4 years is 200 with 50/year limit while RBC's limit is 275 and releases everything up front.

Also is there a reason why no one mentions TD in the Med LOC market? (their annual limit is 85/year).

 

Thanks

[JohnGrisham]

I dont understand why ppl say scotia is better than RBC? scotia's total limit for the first 4 years is 200 with 50/year limit while RBC's limit is 275 and releases everything up front.

Also is there a reason why no one mentions TD in the Med LOC market? (their annual limit is 85/year).

 

Thanks

The annual limits shouldn't really be a factor - they are all high enough to be well beyond what you should be spending anyways- barring very unique personal situations(i.e. have a family to feed where you were the sole breadwinner etc etc).

[RedLily]

Interested in this as well, is there updated info? Or is this pretty much still valid

 

 

Also wondering about this 

[Bambi]

I originally contacted TD and had a problem finding someone who knew what they were doing. So, I simply moved on and crossed them off my list. I went to BN until they started acting like idiots. I did not try to convince them otherwise, I simply left. I made a phone call to RBC, set up an appointment with their specialist for 30 minutes later, and within 15 minutes I signed all the documents to transfer and have been a happy camper ever since.  

[rmorelan]

I dont understand why ppl say scotia is better than RBC? scotia's total limit for the first 4 years is 200 with 50/year limit while RBC's limit is 275 and releases everything up front.

Also is there a reason why no one mentions TD in the Med LOC market? (their annual limit is 85/year).

 

Thanks

 

part of it is RBC and scotia service is I would say better than the other banks - clearly both of them have worked hard on trying to capture that market - in part because they also both have excellent subsequent support in setting up a practise (ie another loan) and tie ins with other investment services moving forward. They both heavily support schools as well in their efforts. Basically both of them are in the game.

 

I never saw the max loan amount to really be a limitation (I mean with osap and bursaries etc I had at least 50K above tuition in year one alone - and it just kept piling on). Ha, I do know some others that would have seriously messed themselves up if they had the full amount all at once with overspending though (so I get suspicious when people eyeing  50K don't think it is enough etc because I have seen the following blood bath ) There are just really only a few people that are going to need that money - and if for some reason you are in the category then you can just go to scotia and work something out (that is the point - the LOC is really a test for you and them to see if that is the sort of bank you will use for the rest of your life. We are talking service here, it is all about the service in the end ha.). If/when the interest rates rise you do NOT want to be the person holding on to the maxed 250K loan - ha, residency and fellowships can be a long, long time here.

 

Are they close - sure of course - they are directly going at each other ( to our benefit). Scotia used to be higher than RBC until they recently increased things. We will see what the on going competition brings next.

Edited April 20, 2016 by rmorelan

[NeuroD]

I dont understand why ppl say scotia is better than RBC? scotia's total limit for the first 4 years is 200 with 50/year limit while RBC's limit is 275 and releases everything up front.

Also is there a reason why no one mentions TD in the Med LOC market? (their annual limit is 85/year).

 

Thanks

I'm wondering about CIBC, are they not as good service-wise as RBC and Scotia?.

 

I heard from U of T students that last year CIBC cut their rate bellow everyone else by 0.25 last minute. It might have been just the rep @ U of T though.

[rmorelan]

I'm wondering about CIBC, are they not as good service-wise as RBC and Scotia?.

 

I heard from U of T students that last year CIBC cut their rate bellow everyone else by 0.25 last minute. It might have been just the rep @ U of T though.

 

no they are no better interest rate than anyone else - historically actually CIBC was at a higher rate than the other banks, and thus didn't get the same sort of attention (no logical reason to go to a place with a higher rate).

 

again it is more that scotia and RBC have made this one of their focuses. That means internal support for it, training, funding, outreach, interest in what people say about them for these sorts of loans. There are people at scotia/RBC whose entire job is to do nothing but these loans for instance - imagine people who actually have their egos wrapped up and internal promotions depending on the outcome of these loans. This isn't a side job ha.

[JohnGrisham]

I'm with CIBC, and to be honest most of the perks the different banks offer are very minimally differentiated - at this point of being in the medical school portion, the "customer service" factor matters very, very little.

You get a LOC, you get a free credit card, and then you move on and never really need to talk to them again for the next 4 years. 

Same interest rates, generally similiar overall values for maximums(which are generally all above what you should actually need etc), all offer some sort of credit card for free that is a perk(no annual fees). Really the miniscule differences come with the credit cards, some will give you the "mumbo jumbo 5000 world premier card" with the 200$ annual fee waived. But really, for most people your not spending enough (or at least you shouldn't be) that the differences are so much more worth it to choose one bank over the other.

I did all my research, knew the factors inside and out - and settled on the bank that was the closest walking distance from my home and had a branch on campus. And had a mobile app, so that I never really have to go in person to the bank.

This is the case for at least 70%+ of students.  The finer details and such come down to the minority of cases of individuals whom have special circumstances: Families and extra expenses to take account off, prior debt loads that they need to address and manage, expensive tastes/hobbies that they don't intend on quitting just because they don't have an income etc etc. In those cases, then it may make sense to shop around for the "Best" credit card perk or w.e, to get that slightly better return on your credit spending.  

Even if you make the "Wrong" choice of bank provider, you can walk away at any time and change over to a different bank.

[_ _]

Is it easier (or recommended) to go with the bank that you also have your regular bank accounts with? Assuming all other factors were equal, as it seems to be for Scotia/RBC.  For example, to avoid any charges for e-transfers between them if that was needed. Or would it be irreverent? 

[JohnGrisham]

Is it easier (or recommended) to go with the bank that you also have your regular bank accounts with? Assuming all other factors were equal, as it seems to be for Scotia/RBC.  For example, to avoid any charges for e-transfers between them if that was needed. Or would it be irreverent? 

Well, you could just get new regular accounts with the LOC bank ofc as well .That would make the most sense to have your accounts all in one place. All of those basic accounts are generally waived as a student anyways.

[johndough123]

I'm having a hard time deciding between RBC and Scotiabank. I spoke with an Ontario RBC rep who was very helpful with everything, however, the Avion fees after the first year are putting me off. 

 

From what i'm reading, Scotiabank is identical in terms of what it is offering LOC-wise with the exception of the two cards it offers (VISA + American Express) and the timing of when the funds are allotted.

 

Can anyone speak as to how experienced/helpful the Montreal Scotiabank rep (according to the website, the McGill rep is Maria El-Hamedi) is in this matter?

 

And can anyone comment on which bank is better, given that I want to maximize travel reward points (ideally without paying out of pocket for annual fees).

 

Again, I liked the warm welcome RBC gave me, however, I am sure Scotiabank has a similar welcome. (As an aside, I noticed a big Scotiabank right next to the McGill campus so they earn some convenience points).

 

I use the website greedyrates to estimate which card was better for my needs (scotia came out on top), but I'm not sure how accurate this is.

[oshaku]

I'm having a hard time deciding between RBC and Scotiabank. I spoke with an Ontario RBC rep who was very helpful with everything, however, the Avion fees after the first year are putting me off. 

 

From what i'm reading, Scotiabank is identical in terms of what it is offering LOC-wise with the exception of the two cards it offers (VISA + American Express) and the timing of when the funds are allotted.

 

Can anyone speak as to how experienced/helpful the Montreal Scotiabank rep (according to the website, the McGill rep is Maria El-Hamedi) is in this matter?

 

And can anyone comment on which bank is better, given that I want to maximize travel reward points (ideally without paying out of pocket for annual fees).

 

Again, I liked the warm welcome RBC gave me, however, I am sure Scotiabank has a similar welcome. (As an aside, I noticed a big Scotiabank right next to the McGill campus so they earn some convenience points).

 

I use the website greedyrates to estimate which card was better for my needs (scotia came out on top), but I'm not sure how accurate this is.

 

The Avion fee also put me off and ultimately, I went with Scotia.  Interestingly, "warm welcome" is something the banks train their staff to do (I noticed it because my adviser had a summer intern). I saw it emphasized more at Scotia. 

 

For convenience - both banks are good.  McGill campus uses RBC ATM machines (including one on the 1st floor of McIntyre), so some may argue that RBC is actually more convenient for withdrawing cash on campus. 

 

If you are a Quebec resident and getting loans from AFE, an important point is that Scotia does not process AFE loans. I ended up getting a regular student account at RBC just to be able to get my student loans.  

 

I think there were complaints on this forum in years past about RBC is that interest on LOC is taken from your chequing account.  So if you didn't remember to keep enough balance on your chequing account, you might end up accumulating overdraft charges. Whereas Scotia takes the LOC interest from the LOC.

[johndough123]

The Avion fee also put me off and ultimately, I went with Scotia.  Interestingly, "warm welcome" is something the banks train their staff to do (I noticed it because my adviser had a summer intern). I saw it emphasized more at Scotia. 

 

For convenience - both banks are good.  McGill campus uses RBC ATM machines (including one on the 1st floor of McIntyre), so some may argue that RBC is actually more convenient for withdrawing cash on campus. 

 

If you are a Quebec resident and getting loans from AFE, an important point is that Scotia does not process AFE loans. I ended up getting a regular student account at RBC just to be able to get my student loans.  

 

I think there were complaints on this forum in years past about RBC is that interest on LOC is taken from your chequing account.  So if you didn't remember to keep enough balance on your chequing account, you might end up accumulating overdraft charges. Whereas Scotia takes the LOC interest from the LOC.

 

Interesting, thanks! Would you happen to know if TD can process AFE loans? 

[oshaku]

Interesting, thanks! Would you happen to know if TD can process AFE loans? 

 

nope. they can't

[RKsf]

Just to give you guys a heads up - if the $50,000 limit in first year is a concern, Scotiabank seems to pretty flexible. I told the rep that it worried me because of having an unholy amount of undergrad debt, and he said they could bump the first year limit to 70K+ with no hesitation.

[rmorelan]

Just to give you guys a heads up - if the $50,000 limit in first year is a concern, Scotiabank seems to pretty flexible. I told the rep that it worried me because of having an unholy amount of undergrad debt, and he said they could bump the first year limit to 70K+ with no hesitation.

 

Seen that before - usually it is just a case of having some logical reason for actually needing an increase. Just "wanting it" isn't enough ha.

[okidoki]

Just to give you guys a heads up - if the $50,000 limit in first year is a concern, Scotiabank seems to pretty flexible. I told the rep that it worried me because of having an unholy amount of undergrad debt, and he said they could bump the first year limit to 70K+ with no hesitation.

 

RBC doesn't seem to have any limits. Any reason why you went with Scotia over RBC?

[_ _]

RBC doesn't seem to have any limits. Any reason why you went with Scotia over RBC?

Scotia had a better travel rewards plan with the Visa for free, RBC just took 40$ off the regular cost. At least that's what I got from them, and it seemed consistent with what I found online.

 

The limits aren't something that would ever be an issue though, unless there was some very rare extenuating circumstance. So I preferred the smaller perks with Scotia

[RKsf]

RBC doesn't seem to have any limits. Any reason why you went with Scotia over RBC?

Seen that before - usually it is just a case of having some logical reason for actually needing an increase. Just "wanting it" isn't enough ha.

I just said "it doesn't leave me much wiggle room in case of emergency given that I have a lot of undergrad debt that it would have to pay off first" and they did it! Guess it's a little more logical than just wanting it, but still is kind of a "want it just in case"