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

[NeuroD]

Thanks!

Sorry for the repost, just want to make sure everyone sees it:

 

I have confirmation today: -0.25% is being offered only from CIBC to Mac students (and it looks like only one branch in Hamilton too). The advisor is not authorized to offer to non-Mac students.

 

I believe RBC did the same sort of thing for U of T last year.

 

That being said, reps from a few of the banks are taking some of us out to lunch to "explain" LOCs at the end of this month. The e-mail mentioned that they have "new" offers for us, so it seems like the -0.25% might spread, at least for McMaster, which is the first step. I'll keep you guys posted after that lunch.

[GTA Med Advisor]

Hey everyone, I just wanted to pop in to announce some changes coming next week to Scotiabank's SPSP offering.

 

We will now have the option of approving a total of $275,000 and making the full limit available up front like some of the other banks. We will also be giving the option to keep the LOC open after graduation/residency at the limit you were approved for, and that should apply to all existing LOCs. These are some great changes coming our way and we should know the exact details next week.

 

If you have any questions feel free to send me a message or contact your Advisor.

[NeuroD]

Hey everyone, I just wanted to pop in to announce some changes coming next week to Scotiabank's SPSP offering.

 

We will now have the option of approving a total of $275,000 and making the full limit available up front like some of the other banks. We will also be giving the option to keep the LOC open after graduation/residency at the limit you were approved for, and that should apply to all existing LOCs. These are some great changes coming our way and we should know the exact details next week.

 

If you have any questions feel free to send me a message or contact your Advisor.

Hey Alex, great to hear that.

 

What's going through most people's mind is, will Scotia match CIBC's interest rate? I know RBC offered it in Toronto last year, and some specific branches/banks (including Scotia branches outside of Hamilton apparently) are matching it for students with written confirmation of the interest rate, but will there be more widespread, "official" adoption?

[GTA Med Advisor]

That was actually asked and addressed at the same time we found out about these changes coming. The answer we received was that we will not be matching any rates below Prime at this time, they are aware of it happening in select locations/cities by other banks but we're not getting into that. With that said just because they say that now doesn't mean it can't change in the future, so I'd check with the advisor in Hamilton (I think it's only been happening at McMaster?) now and again.

[annkathrinMD]

For CIBC, does the rate stay at Prime-0.25% throughout med school and residency? I heard that they use that deal to lock you in, and then make you renew your contract after year 1 at just Prime...  

(currently trying to decide between Scotia and CIBC)

[NeuroD]

For CIBC, does the rate stay at Prime-0.25% throughout med school and residency? I heard that they use that deal to lock you in, and then make you renew your contract after year 1 at just Prime...

 

(currently trying to decide between Scotia and CIBC)

It stays at prime-0.25%. There's no such thing as being locked in, you can always transfer your LOC between banks.

[mnbv]

Hey everyone, I just wanted to pop in to announce some changes coming next week to Scotiabank's SPSP offering.

 

We will now have the option of approving a total of $275,000 and making the full limit available up front like some of the other banks. We will also be giving the option to keep the LOC open after graduation/residency at the limit you were approved for, and that should apply to all existing LOCs. These are some great changes coming our way and we should know the exact details next week.

 

If you have any questions feel free to send me a message or contact your Advisor.

Hello,

Has there been any update/confirmation on the details of these changes?

Thanks!

[GTA Med Advisor]

Hi mnbv,

 

The changes are confirmed as stated above. Any new applicants will be approved for the full amount up front, and any existing Scotiabank SPSP clients with LOCs not in repayment can apply for the higher limit (if not already approved for the $275K) to be made available right away and to keep it open. Let me know if you have any questions regarding that.

[ScotiabankMedsAdvisor]

As Alex said these changes have been confirmed.  All applications will be processed this way going forward.  That being said people will still have the option to take the funds in a staggered format if they feel they will not budget properly without the annual limits in place.  Over the next few months we will be contacting all existing customers to discuss the changes and update there accounts if they wish.

[jebelali]

Asked the reps at Memorial. Did not know about it and said no such thing exists!

[rmorelan]

Asked the reps at Memorial. Did not know about it and said no such thing exists!

 

are you talking about the scotia thing? Maybe hasn't moved completely down the food chain yet (pretty new changes it seems). Seem real from what I have been hearing. 

[shady]

Sorry for the repost, just want to make sure everyone sees it:

 

I have confirmation today: -0.25% is being offered only from CIBC to Mac students (and it looks like only one branch in Hamilton too). The advisor is not authorized to offer to non-Mac students.

 

I believe RBC did the same sort of thing for U of T last year.

 

That being said, reps from a few of the banks are taking some of us out to lunch to "explain" LOCs at the end of this month. The e-mail mentioned that they have "new" offers for us, so it seems like the -0.25% might spread, at least for McMaster, which is the first step. I'll keep you guys posted after that lunch.

 

CIBC is not offering premium credit cards. This is unfortunate. I might still switch to them from Scotia though - the interest alone will save me ~$400/year

[hurthouse]

Hi mnbv,

 

The changes are confirmed as stated above. Any new applicants will be approved for the full amount up front, and any existing Scotiabank SPSP clients with LOCs not in repayment can apply for the higher limit (if not already approved for the $275K) to be made available right away and to keep it open. Let me know if you have any questions regarding that.

 

As Alex said these changes have been confirmed.  All applications will be processed this way going forward.  That being said people will still have the option to take the funds in a staggered format if they feel they will not budget properly without the annual limits in place.  Over the next few months we will be contacting all existing customers to discuss the changes and update there accounts if they wish.

 

Any word on whether Scotiabank will match CIBC's -0.25%? I'm a happy Scotia customer right now but am really considering switching before their offer expires.

[NeuroD]

CIBC is not offering premium credit cards. This is unfortunate. I might still switch to them from Scotia though - the interest alone will save me ~$400/year

 

 

Any word on whether Scotiabank will match CIBC's -0.25%? I'm a happy Scotia customer right now but am really considering switching before their offer expires.

 

I'm at Calgary and at least a couple CIBC branches here have confirmed that they are offering the prime-0.25% rate.

Same, I'm with Scotia, but even without the credit cards I think I might switch to CIBC. Hard to beat the basics of lower interest.

[rmorelan]

Same, I'm with Scotia, but even without the credit cards I think I might switch to CIBC. Hard to beat the basics of lower interest.

 

extremely difficult.

 

That is exactly why I look at all the credit card stuff as only a secondary consideration.

 

and of course the more people that actually do switch the more pressure there is for all the remaining places to switch as well.

[JohnGrisham]

Put the pressure on so it can spread to other schools and provinces too

[ScotiabankMedsAdvisor]

With respect to the interest rate Scotia has no intention of doing sub prime lending at this time.  It is important to note from what I have heard that CIBC offered this same Prime - .25% last year to some students.  Some of these students have since had the rates increased to Prime.  All of the agreements signed will have a clause in them that allows them to amend the agreement at any time.  It seems to be an attempt to get students in when they are at the minimum balances and therefore the interest difference is miniscule.  I can't say this will happen this year as well but this is the fallout we have experienced from last year.

[NeuroD]

With respect to the interest rate Scotia has no intention of doing sub prime lending at this time.  It is important to note from what I have heard that CIBC offered this same Prime - .25% last year to some students.  Some of these students have since had the rates increased to Prime.  All of the agreements signed will have a clause in them that allows them to amend the agreement at any time.  It seems to be an attempt to get students in when they are at the minimum balances and therefore the interest difference is miniscule.  I can't say this will happen this year as well but this is the fallout we have experienced from last year.

 

Interesting.

 

My advisor assured me it was a lifetime subprime rate, although I have not seen the agreement. I doubt she would lie to me and others, but if she was mistaken I would be very disappointed. I think it is more likely that they've come to their senses and fixed the terms.

[( ͡° ͜ʖ ͡°)]

RBC in Toronto was offering subprime last year?? Was this specific to residents or all applicants? And are they still doing it this year?

[hurthouse]

With respect to the interest rate Scotia has no intention of doing sub prime lending at this time.  It is important to note from what I have heard that CIBC offered this same Prime - .25% last year to some students.  Some of these students have since had the rates increased to Prime.  All of the agreements signed will have a clause in them that allows them to amend the agreement at any time.  It seems to be an attempt to get students in when they are at the minimum balances and therefore the interest difference is miniscule.  I can't say this will happen this year as well but this is the fallout we have experienced from last year.

That's unfortunate to hear re: the rate. But thank you for mentioning the CIBC switcheroo -- I was also assured that the rate would remain for the life of the LoC. I will read over whatever it is I sign with extra attention.

[shady]

That's unfortunate to hear re: the rate. But thank you for mentioning the CIBC switcheroo -- I was also assured that the rate would remain for the life of the LoC. I will read over whatever it is I sign with extra attention.

Obv there is a glaring conflict of interest here.

 

Do read the contract carefully as usual. Yes all contracts say "subject to change". But the person making disparaging claims about CIBC has an inherent conflict of interest in the matter. Take it with a grain of salt

[NeuroD]

Obv there is a glaring conflict of interest here.

 

Do read the contract carefully as usual. Yes all contracts say "subject to change". But the person making disparaging claims about CIBC has an inherent conflict of interest in the matter. Take it with a grain of salt

Right, and it wouldn't make a lot of sense for CIBC to do that, since we can just swap out to another bank whenever we want. They'd lose a lot of customers that way, and they know it.

[hurthouse]

Obv there is a glaring conflict of interest here.

 

Do read the contract carefully as usual. Yes all contracts say "subject to change". But the person making disparaging claims about CIBC has an inherent conflict of interest in the matter. Take it with a grain of salt

 

 

Right, and it wouldn't make a lot of sense for CIBC to do that, since we can just swap out to another bank whenever we want. They'd lose a lot of customers that way, and they know it.

 

I realize there's a CoI obviously but it never hurt anyone to read their contracts carefully before signing. I don't fully believe CIBC did what was claimed here, but I'm glad they brought up the possibility.

[rmorelan]

Would they lose any customers though? - going back to prime just puts you back where everyone else is. How many would then switch just to end up back exactly with what they already had?

 

The only thing that would keep it down is the same thing that would force everyone else to drop it - competition (or fear of its effects).

[shady]

Would they lose any customers though? - going back to prime just puts you back where everyone else is. How many would then switch just to end up back exactly with what they already had?

 

The only thing that would keep it down is the same thing that would force everyone else to drop it - competition (or fear of its effects).

They aren't giving any perks (gold CC or premium chequing). Personally, I would switch to another bank with those features if they bumped my rate up to prime