future_doc Posted May 24, 2013 Report Share Posted May 24, 2013 Mortgages and the LOC have both been lower in past years. Link to comment Share on other sites More sharing options...
schmitty Posted May 24, 2013 Report Share Posted May 24, 2013 Mortgages and the LOC have both been lower in past years. Yeah, it was a touch lower at the end of 2009/start of 2010, but only for a few months and that was the lowest it has been in over 50 years. Link to comment Share on other sites More sharing options...
BoyInTheBubble Posted May 24, 2013 Report Share Posted May 24, 2013 You can get a mortgage for less than 3%. I just got offered one for instance at 2.79%. The LOC prime rate is NOT the lowest mortgage a med student or resident can get. Once again we have a insanely good advantage there. Side note - that was on top of my LOC - so I have both the option of a full LOC of 275K now and a full mortgage up to a rather high amount as well. With a mortgage you have to pay interest AND principal the entire time. If you buy a 150-200 000 home outright, you can pay interest only until you finish residency and earn a more significant paycheck. And you can pay it back at any time, if you wish. 200 000 at 3% equals 500/month. No way you pay 500 dollars in a mortgage. This is however using a HUGE chunk of your LOC for non-tuition. Considering it would only help if you have money to pay for other things. You can also use it to increase your down payment. Link to comment Share on other sites More sharing options...
future_doc Posted May 24, 2013 Report Share Posted May 24, 2013 Yeah, it was a touch lower at the end of 2009/start of 2010, but only for a few months and that was the lowest it has been in over 50 years. A few years back, a friend was paying less than 2% on her mortgage! Link to comment Share on other sites More sharing options...
rmorelan Posted May 25, 2013 Report Share Posted May 25, 2013 With a mortgage you have to pay interest AND principal the entire time. If you buy a 150-200 000 home outright, you can pay interest only until you finish residency and earn a more significant paycheck. And you can pay it back at any time, if you wish. 200 000 at 3% equals 500/month. No way you pay 500 dollars in a mortgage. This is however using a HUGE chunk of your LOC for non-tuition. Considering it would only help if you have money to pay for other things. You can also use it to increase your down payment. I have asked for the all the details about the mortgage they are offering me and will post it when I do I will say you don't pay back much principle in the first five years of any mortgage so you could probably argue you aren't paying initially much more than principle. Link to comment Share on other sites More sharing options...
future_doc Posted May 25, 2013 Report Share Posted May 25, 2013 Buying a house, are we? Enjoy! Link to comment Share on other sites More sharing options...
rmorelan Posted May 25, 2013 Report Share Posted May 25, 2013 Buying a house, are we? Enjoy! Well just looking into the options really. I want to know exactly where I stand etc Link to comment Share on other sites More sharing options...
future_doc Posted May 25, 2013 Report Share Posted May 25, 2013 Exploratory surgery, eh. Gotta start the process sometime, somewhere. Link to comment Share on other sites More sharing options...
BoyInTheBubble Posted May 25, 2013 Report Share Posted May 25, 2013 I have asked for the all the details about the mortgage they are offering me and will post it when I do I will say you don't pay back much principle in the first five years of any mortgage so you could probably argue you aren't paying initially much more than principle. That's because in the early years you pay a higher proportion of the total interest. (You're payment stays the same over time.) That's why people add in extra payments when they can. It's on the principal. If you paid an equal portion of the principal every month, plus the appropriate interest (which would be decreasing each month), you'd have a front end heavy payment plan which most people don't want. Using the LOC is like back loading it. (I think.) You still have to make all the payments, you can just defer until you make more money. Link to comment Share on other sites More sharing options...
rmorelan Posted May 25, 2013 Report Share Posted May 25, 2013 That's because in the early years you pay a higher proportion of the total interest. (You're payment stays the same over time.) That's why people add in extra payments when they can. It's on the principal. If you paid an equal portion of the principal every month, plus the appropriate interest (which would be decreasing each month), you'd have a front end heavy payment plan which most people don't want. Using the LOC is like back loading it. (I think.) You still have to make all the payments, you can just defer until you make more money. Oh why it is mostly interest in the beginning - my point was that the cost would be similar I will let everyone know! Got to love hard numbers! Link to comment Share on other sites More sharing options...
Leon Posted May 27, 2013 Report Share Posted May 27, 2013 Has anyone been able to secure a LOC yet? Both Scotia and RBC are refusing to allow access to funds until proof of enrollment- which UT doesn't provide until August. Apparently policies have become more strict and the offer letter is insufficient. I spoke to professionals who deal with medical student LOCs. Link to comment Share on other sites More sharing options...
every1knewherasnancy Posted May 27, 2013 Report Share Posted May 27, 2013 Same for me with RBC Link to comment Share on other sites More sharing options...
pink13 Posted May 27, 2013 Report Share Posted May 27, 2013 Yep same with me... But our college is going to do ours for us right away! That's what they said anyways... Link to comment Share on other sites More sharing options...
lovestruck Posted May 27, 2013 Report Share Posted May 27, 2013 I've had no mention of requiring enrollement with my Scotiabank advisor, but he could also just not be mentionning it yet? Link to comment Share on other sites More sharing options...
PhoenixFlare500 Posted May 27, 2013 Report Share Posted May 27, 2013 Ask your undergraduate office for some kind of early proof of enrolment. Link to comment Share on other sites More sharing options...
rmorelan Posted May 27, 2013 Report Share Posted May 27, 2013 Ask your undergraduate office for some kind of early proof of enrolment. Probably your best bet - interesting that they are getting a bit more tough. I wonder if someone got into a bit of trouble overspending in the summer before etc (it is not a let's go to Vegas fund ) Link to comment Share on other sites More sharing options...
Leon Posted May 27, 2013 Report Share Posted May 27, 2013 Someone intercepted an acceptance letter in the mail and used it to open a LOC and withdraw all the cash. I'm not yet sure exactly how but that's what a rep told me when I asked about why they've changed their policies so suddenly. UofT very explicitly refuses to provide any proof of enrollment until the last week of August. I've spoken with multiple people in not only the MD Registrar but also the Finance and Admission Offices. It's somewhat frustrating as I require access to funds to secure a place to live (first and last rent payments for a place downtown aren't cheap!). I asked the bank whether they could put a cap on the LOC until enrollment (eg. give me access to 10K or so until August and lift the cap after enrollment) but they said no to that too. The Admissions Office actually seems kind of annoyed by my requests at this point so I've given up on getting anything further from them, lol. Link to comment Share on other sites More sharing options...
rmorelan Posted May 27, 2013 Report Share Posted May 27, 2013 Someone intercepted an acceptance letter in the mail and used it to open a LOC and withdraw all the cash. I'm not yet sure exactly how but that's what a rep told me when I asked about why they've changed their policies so suddenly. UofT very explicitly refuses to provide any proof of enrollment until the last week of August. I've spoken with multiple people in not only the MD Registrar but also the Finance and Admission Offices. It's somewhat frustrating as I require access to funds to secure a place to live (first and last rent payments for a place downtown aren't cheap!). I asked the bank whether they could put a cap on the LOC until enrollment (eg. give me access to 10K or so until August and lift the cap after enrollment) but they said no to that too. The Admissions Office actually seems kind of annoyed by my requests at this point so I've given up on getting anything further from them, lol. wow - I always thought the policies were a bit loose but just wow - not that loose. The annoying part of that (if it holds true everywhere) is tuition is often due very early August. Sounds tight. Link to comment Share on other sites More sharing options...
Leon Posted May 27, 2013 Report Share Posted May 27, 2013 wow - I always thought the policies were a bit loose but just wow - not that loose. The annoying part of that (if it holds true everywhere) is tuition is often due very early August. Sounds tight. That's the alternative- once tuition shows up on ROSI (the online system at UofT where you pay fees, pick courses, confirm graduation etc), the bank is happy to open the LOC then too. The disadvantage is that you immediately accrue interest on the tuition paid (from the LOC). My best bet right now seems to be: Wait for tuition to show up on ROSI, defer it using the claim to OSAP, and use that as evidence of enrollment. I still think this will take till August so it's kind of ridiculous, especially as I know that the offer letter was considered valid proof all these years. A single isolated incident shouldn't cause such a huge policy change. I offered to show them my acceptance of the offer through SAM but that doesn't work either, though I can see why. I can always just "pack up and leave" so it's risky for the bank. Link to comment Share on other sites More sharing options...
rmorelan Posted May 27, 2013 Report Share Posted May 27, 2013 That's the alternative- once tuition shows up on ROSI (the online system at UofT where you pay fees, pick courses, confirm graduation etc), the bank is happy to open the LOC then too. The disadvantage is that you immediately accrue interest on the tuition paid (from the LOC). My best bet right now seems to be: Wait for tuition to show up on ROSI, defer it using the claim to OSAP, and use that as evidence of enrollment. I still think this will take till August so it's kind of ridiculous, especially as I know that the offer letter was considered valid proof all these years. A single isolated incident shouldn't cause such a huge policy change. I offered to show them my acceptance of the offer through SAM but that doesn't work either, though I can see why. I can always just "pack up and leave" so it's risky for the bank. yeah exactly - still the bank's margin on this LOC is so small (they do basically lose money on our LOCs when you factor in operational costs, staff, and risks like the one that happened here) that a one time wipe out for a full LOC is a big deal for them. The interest on 20K approx tuition for one month is 50 dollars - I suppose if you had something important to do with LOC around that time there are worse punishments than paying that. Link to comment Share on other sites More sharing options...
future_doc Posted May 27, 2013 Report Share Posted May 27, 2013 Has anyone been able to secure a LOC yet? Both Scotia and RBC are refusing to allow access to funds until proof of enrollment- which UT doesn't provide until August. Apparently policies have become more strict and the offer letter is insufficient. I spoke to professionals who deal with medical student LOCs. You may be dealingwith the wrong bank or the wrong guy. At MUN, at least one student now has access to the RBC LOC already and see below: me too, only at TD..I have to apply for the full amount though, with reason...hmmm wife, 2 kids lol. I have 250k it is just spread over the 4 years I received my first installment a while back and my wife and has been shopping like crazy to furnish our new place. Really, you are in the driver's seat and if the bank won't be reasonable with you, they become a problem, just move on. Link to comment Share on other sites More sharing options...
cnb88 Posted May 28, 2013 Report Share Posted May 28, 2013 Scotia had a similar policy last year- they wouldn't release funds until you could provide proof of enrollment. It was as soon as we were able to register for classes for the Scotia rep here in AB. All we had to do was print out/e-mail proof that we were enrolled in the classes and funds got released (which would be about the same time as the fee assessment would show up). I'm not sure how UofT is, but you could wait for that. I think it was sometime in July/early August I had access. Ask your Scotia (or RBC) if a class schedule would suffice- in which case you might only have to wait a month or so. There really isn't much you can do- these are the policies for the professional student LOCs for all banks now (from what I understand). Link to comment Share on other sites More sharing options...
Leon Posted May 28, 2013 Report Share Posted May 28, 2013 The interest on 20K approx tuition for one month is 50 dollars - I suppose if you had something important to do with LOC around that time there are worse punishments than paying that. Ok, I was really stupid and forgot to divide the interest by 12 and assumed the interest was $600 -.-" . $50 isn't too bad at all- I may have to go this route, though it still means late August You may be dealingwith the wrong bank or the wrong guy. At MUN, at least one student now has access to the RBC LOC already and see below: Really, you are in the driver's seat and if the bank won't be reasonable with you, they become a problem, just move on. These are the professionals who deal with medical student LOCs. They've been doing so for years (and at least one of them for over a decade) Scotia had a similar policy last year- they wouldn't release funds until you could provide proof of enrollment. It was as soon as we were able to register for classes for the Scotia rep here in AB. All we had to do was print out/e-mail proof that we were enrolled in the classes and funds got released (which would be about the same time as the fee assessment would show up). I'm not sure how UofT is, but you could wait for that. I think it was sometime in July/early August I had access. Ask your Scotia (or RBC) if a class schedule would suffice- in which case you might only have to wait a month or so. There really isn't much you can do- these are the policies for the professional student LOCs for all banks now (from what I understand). Yup. I guess another option is to get a co signer and request part of the LOC to be released on the cosigner's trust but I don't want to depend on anyone in anyway. UofT literally said August 26 is enrollment and they refuse to help with LOCs until then. There's nothing much I can do- I'll have to depend on my parent's LOC until August and then pay them back (I always hate doing this as I like to handle my finances on my own, lol). Link to comment Share on other sites More sharing options...
distressedpremed Posted May 28, 2013 Report Share Posted May 28, 2013 Ok, I was really stupid and forgot to divide the interest by 12 and assumed the interest was $600 -.-" . $50 isn't too bad at all- I may have to go this route, though it still means late August These are the professionals who deal with medical student LOCs. They've been doing so for years (and at least one of them for over a decade) Yup. I guess another option is to get a co signer and request part of the LOC to be released on the cosigner's trust but I don't want to depend on anyone in anyway. UofT literally said August 26 is enrollment and they refuse to help with LOCs until then. There's nothing much I can do- I'll have to depend on my parent's LOC until August and then pay them back (I always hate doing this as I like to handle my finances on my own, lol). Man this sucks. Thanks for giving us all a heads up though Leon, really appreciate it. When do we have to pay tuition? I'm going to commute so my expenses won't be that bad, but I definitely don't have the money to pay tuition without the LOC. And if we're getting it after class starts, that means that we'll have to pay interest on our tuition (and we come out the sorer loser)... Anyone got any advice on this? :S or am I wrong about the tuition part? Link to comment Share on other sites More sharing options...
schmitty Posted May 28, 2013 Report Share Posted May 28, 2013 Man this sucks. Thanks for giving us all a heads up though Leon, really appreciate it. When do we have to pay tuition? I'm going to commute so my expenses won't be that bad, but I definitely don't have the money to pay tuition without the LOC. And if we're getting it after class starts, that means that we'll have to pay interest on our tuition (and we come out the sorer loser)... Anyone got any advice on this? :S or am I wrong about the tuition part? If you can defer due to OSAP, then you don't pay interest to UofT on your tuition until months later. Link to comment Share on other sites More sharing options...
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