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

[rogerroger]

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

Yes, agreed.

 

RBC wasn't giving me what I wanted. I threatened to leave and take my LOC with me. They still wouldn't budge so I left, it was super easy to transfer to another bank with a better arrangement. RBC is the worst. Their LOC repayment scheme isn't the best. Their credit cards are not the best. Their customer service stinks. They are always confused about the unique needs of medical trainees etc.

 

FYI: If you are transitioning into practice soon, take a close look at the National Bank. 

Edited August 27, 2016 by rogerroger

[rmorelan]

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

 

oh I agree some will - I just wonder exactly how many would bother. For many people there is a lot of inertia. I think you have to be active at seeking deals but that I think may be a minority position.

 

If you think about this whole thing wouldn't cost CIBC much - the LOC would not be used much in year one for many (1st year, use up any savings, family support......) so the rate is not as relevant. It is the rate in residency and beyond that really matters when you are at your highest loan amounts.

[hurthouse]

oh I agree some will - I just wonder exactly how many would bother. For many people there is a lot of inertia. I think you have to be active at seeking deals but that I think may be a minority position.

 

If you think about this whole thing wouldn't cost CIBC much - the LOC would not be used much in year one for many (1st year, use up any savings, family support......) so the rate is not as relevant. It is the rate in residency and beyond that really matters when you are at your highest loan amounts.

 

Exactly what I'm mulling over right now. CIBC's transition to practice is not ideal -- my rep told me that either you change your loan to a professional LoC (prime+1) or to a term loan (typically higher than prime+1). My Scotiabank rep says that their professional LoC, which you transition to following residency, remains at prime.

 

I'm thinking it might be good to switch over to CIBC now and move to an institution with more favourable terms in late residency.

[shady]

Exactly what I'm mulling over right now. CIBC's transition to practice is not ideal -- my rep told me that either you change your loan to a professional LoC (prime+1) or to a term loan (typically higher than prime+1). My Scotiabank rep says that their professional LoC, which you transition to following residency, remains at prime.

 

I'm thinking it might be good to switch over to CIBC now and move to an institution with more favourable terms in late residency.

Hmm that's interesting. I spoke to two reps at my branch, and they both said rate and limits stay the same beyond residency, including practice. It's just the name that changes to "Professional LoC". However, any extra LoC's beyond this one (or limit increases beyond $275k), are to be at prime + 1%

 

You're right. If there's so much uncertainty, this won't hold well. Might switch again in late residency

 

Rmorlean: I'm suprised how much inertia there is. I have many friends who would save hundreds with this offer, but won't bother switching because it's too much work o.O

 

EDIT: typos

[hurthouse]

Hmm that's interesting. Ispike to two reps at my branch, and they both said rate and limits stay the same beyond residency, including practice. It's just the name that changes to "Professional LoC". However, and extra LoC's beyond this one (or limit increases beyond $275k), are to be at prime + 1%

 

You're right. If there's so much uncertainty, this won't hold well. Might switch again in late residency

 

Rmorlean: I'm suprised how much inertia there is. I have many friends who would save hundreds with this offer, but won't bother switching because it's too much work o.O

 

Hmm, you seem to be right. The CIBC page says repayment options are based on CIBC prime... I guess my rep doesn't do these too often, or misunderstood my inquiry.

 

https://www.cibc.com/en/personal-banking/loans-and-lines-of-credit/student-lines-of-credit/professional-students.html

 

With that, it's even more difficult to justify sticking with Scotia.

[Arztin]

• $275,000* as a medical or dentistry student (including any residency programs such as radiology, anesthesiology, osteopathy and psychiatry) - from the link you provided

   

  Hmm, you seem to be right. The CIBC page says repayment options are based on CIBC prime... I guess my rep doesn't do these too often, or misunderstood my inquiry.

   

  https://www.cibc.com/en/personal-banking/loans-and-lines-of-credit/student-lines-of-credit/professional-students.html

   

  With that, it's even more difficult to justify sticking with Scotia.

  I gotta say, this doesn't give me any reason to trust them. They don't seem to even know what are the residency options

I feel like very often, it just depends on the rep.

 

Initially in 2014, I shopped in 3 different banks: CIBC, national bank, and RBC.

My only bank account back then was CIBC. Naturally I went there, and the rep was simply absurdly stupid. He tried to make it sound like it was hard to get a line of credit. He told me if I was going to get a part time job to pay interests. I told him, no. He says that it would be easier to get it approved if I had a source of income. He then kept talking, making it sound like it's hard to get a line of credit for med students, so I started to get really annoyed, so I just got up, took my coat and left. Needlessly to say, he looked very flustered and showed a face of ''oh crap I completely screwed up''.

 

I then went to National Bank, and the rep asked me 6 times within 20 minutes if I was about to start pharmacy school. I deemed that person untrustworthy and left.

 

I ended up signing with RBC, even though the agent didn't know what fellowship means.

 

Meanwhile, some other reps work so hard to convince people to sign with them in an anon forum.

[ploughboy]

RBC wasn't giving me what I wanted... Their LOC repayment scheme isn't the best.

 

I'm curious what they offered you for LOC repayment.  When I met with my RBC adviser earlier this summer, one of the things on my agenda was to confirm (actually, re-confirm, since we've talked about it before) that I would be converting my LOC to a professional LOC at prime after my first year post-residency.  Well she started to talk kind of fast and wave her hands a lot, saying that I would have to provide proof of income during my first year, and depending on what that was the bank would decide on terms.  She also seemed to want to push me into a term loan.

 

Given that I had just told her what my yearly gross income would be, and that it will be well in excess of what I owe on my line of credit, I found this quite irritating.  Just curious if RBC gave you the same runaround, or if they cheesed you off in a completely different way.

[PurpleS]

I looked into switching into the CIBC prime-0.25%: What put me off is the fact that when I asked explicitly if they can include the terms of the interest rate within the contract so I have it on paper and both of us have signed, she kind of backed out saying she will put a note in my account.

 

This led me to believe that the prime-0.25% was very adviser dependent and that when it would actually make a difference later on when I use more of my LOC, they would switch back to prime which definitely would not make it worth it to switch.

[NeuroD]

FYI I spoke with a few advisors from different branches in Hamilton today. Looks like the offer has no spread to other branches, and they got final confirmation today that the discount is permanent.

[hurthouse]

FYI I spoke with a few advisors from different branches in Hamilton today. Looks like the offer has no spread to other branches, and they got final confirmation today that the discount is permanent.

 

Permanent as in it stays at Prime-0.25 once you get it, or permanent as in this offer will be around for the long term with no application deadline?

[NeuroD]

Permanent as in it stays at Prime-0.25 once you get it, or permanent as in this offer will be around for the long term with no application deadline?

Permanent as in it stays at Prime-0.25 once you get it.

[trynagetintomed]

cibc is also offering prime - .25% at ubc...however only the cibc on the ubc campus

[ploughboy]

Permanent as in it stays at Prime-0.25 once you get it.

 

That's really good.  A good deal now, and an even better deal if and when interest rates rise.  As I posted upthread, not that long ago prime was 5.75%.

[JohnGrisham]

cibc is also offering prime - .25% at ubc...however only the cibc on the ubc campus

Is this true?

[rmorelan]

That's really good.  A good deal now, and an even better deal if and when interest rates rise.  As I posted upthread, not that long ago prime was 5.75%.

 

yeah I always say we cannot get TOO used to the low rates. As much as they have hung around quite a bit actually ha

 

No one wants to be stuck holding the bag when they go to more historical levels - we are more than spoiled right now I think 

[rmorelan]

cibc is also offering prime - .25% at ubc...however only the cibc on the ubc campus

 

this pocketed approach is extremely weird - I mean get if you can of course but wow to have different policies within a bank. That is just confusing for everyone. 

[trynagetintomed]

Is this true?

yeah I went to financial services night yesterday at the MSAC and it was being offered...they said only for ubc.

[chem391]

Can confirm CIBC at ubc is offering prime -0.25%. I'll check whether it's during the whole term of school and residency.

[PurpleS]

this pocketed approach is extremely weird - I mean get if you can of course but wow to have different policies within a bank. That is just confusing for everyone. 

 

I think this is because it's extremely adviser specific. As in probably only 1 adviser at that bank can get it approved and as soon as that adviser leave, your interest rates will go up to prime.

[shady]

As in probably only 1 adviser at that bank can get it approved and as soon as that adviser leave, your interest rates will go up to prime.

 

Pretty big claim that rates go up when the bank promises that it won't. To be clear, is this speculation or do you have insider knowledge?

[PurpleS]

Pretty big claim that rates go up when the bank promises that it won't. To be clear, is this speculation or do you have insider knowledge?

 

I suspected as much when I asked directly if I can get it in writing that it won't go up for as long as I have the LOC and they couldn't deliver that. Someone's word doesn't really mean much to me if they can't guarantee it in writing - especially if I need to switch locations with a different rep during residency. At that point, my debt would have accumulated more and the 0.25% in interest actually makes a bigger difference.

[rmorelan]

I suspected as much when I asked directly if I can get it in writing that it won't go up for as long as I have the LOC and they couldn't deliver that. Someone's word doesn't really mean much to me if they can't guarantee it in writing - especially if I need to switch locations with a different rep during residency. At that point, my debt would have accumulated more and the 0.25% in interest actually makes a bigger difference.

 

As far as I can tell none of the banks guarantee the rate on paper - this is all just held together with the forces of competition and fear of backlash from us the consumer from broken verbal promises. 

[rmorelan]

I think this is because it's extremely adviser specific. As in probably only 1 adviser at that bank can get it approved and as soon as that adviser leave, your interest rates will go up to prime.

 

yeah but if I was any other advisor at that bank I would be going - look Bob got this in XYZ and Sally did in ABC and look their business bumped up. I want a) my business to bump up too as  that is how you get promoted at a bank b ) my clients are upset they cannot get the better rate c) my competition is still dominating my area and I want them to get crushed. Why should they just get the upgrade? That is confusing for us, and confusing for our customers. 

Edited September 4, 2016 by rmorelan

[shady]

I suspected as much when I asked directly if I can get it in writing that it won't go up for as long as I have the LOC and they couldn't deliver that. Someone's word doesn't really mean much to me if they can't guarantee it in writing - especially if I need to switch locations with a different rep during residency. At that point, my debt would have accumulated more and the 0.25% in interest actually makes a bigger difference.

Like rmorlean said, none of the banks provide guarentees in writing. My old prime loan was also subject to change on a whim. All the bank had to do is give me 30 days notice.

 

So really, CIBC isn't any different

[PurpleS]

Ahhh. Perhaps I just have trouble trusting advisors without doing my own research first. Usually if something seems too good to be true, it probably is.

 

I guess I am also suspicious because if it was reasonable for CIBC to offer prime-0.25%, why would other banks not match the rate to keep their customers? I suppose the premium credit cards and other perks would play a role?