Scotia vs. RBC LOC

[danisings]

I am currently on a ten year planning phase I guess (year 2 in).

I need a paper bag. Hyperventilation commencing.

[rmorelan]

I need a paper bag. Hyperventilation commencing.

 

Ha Well - once you decide your specialty (year 3 at the latest realistically) - you start picking electives at specific schools, go to those schools in year 4, and then match hopefully (5 more years at a target site), fellowship in your area of choice (another 1-3 in my case), maybe add in a masters for a year, do any locums possibly, pick a site to work you likely have have scouted out for years, and years ago (often you do a fellowship to fix a hole in skill set at a particular site - you and them work that out in advance).........

 

This is the really real world after all

[Caliver]

I did look at it but didn't buy - there were a few reasons for this

 

a) I would have lost out of about 25K in OSAP grants, plus would have paid more interest on top of that as I would have had to use my LOC more.

I would have lost out on a very valuable bursaries that depend on assets and getting OSAP etc - another 20K

c) The cost of selling would destroy much of the raise in property values in London over the last 4 years. London is not TO of course - it was a much more depressed area due to the auto makers difficulties. It is doing better now but even so rises are estimated at 2% a year overall by the real estate board. TO of course rose more BUT now we have to wonder if there is a real estate bubble going on - interest rates are set to rise, condos are still going up like crazy etc. You know on some level the entire buy low sell high thing constantly jumps to mind - when I see a lot of people rushing to buy something it makes me nervous I want to buy when they are running away from something

d) In terms of space needs it would be hard to buy a place that was equivalent to renting. For instance I rented a nice basement apartment (had a fire place ) for 600 including everything. It was close to campus. The minimum condo would have had interest costs on the mortgage well above 600 a month, plus there is insurance, utilities I wasn't paying....I mean it would have been a better place to live - all to myself etc, but would simply cost more. The price you pay.

e) There was the shear pain in the ass factor of selling, potentially finding maybe roomates - and remember that during 4th year you are way often for months at a time - absent landlord - ha

 

I did the math, and for me it was cheaper and more flexible to rent. 4 years is a pretty quick turn around for real estate (you do not pay off much principal in the first 4 first on the loan - most payments go to interest - principal is paid off more at the end of things.

 

rmorelan, could you clarify on this? How do you lose grants if you buy a property as your primary residence?

[Caliver]

Can anyone shed light on OSAP grants with assets? I thought your primary residence wouldn't affect your OSAP at all...

[rmorelan]

Can anyone shed light on OSAP grants with assets? I thought your primary residence wouldn't affect your OSAP at all...

 

It won't - that is one of the two big assets that won't affect your osap funding - note however that any investment income if you rent part of the house out would be income and that could effect osap. Cannot have it both ways (investment vs primary residency).

 

However medical student often get large bursaries as well - and those don't need to work by OSAPs rules depending on the school - a property could be considered an asset there - particularly once your house rises in value. That could impact those bursaries/grants etc as well.

[rmorelan]

rmorelan, could you clarify on this? How do you lose grants if you buy a property as your primary residence?

 

Well first I guess it is important to consider not everyone is of course in Ontario - other provinces may not and in fact do not consider primary residences the same way

 

and then there were those school specific grants/bursaries etc which can be effected.

[future_doc]

Consult an independent broker.

[future_doc]

Yes. An independent broker would have intimate knowledge of all underwriters for this type of insurance including their respective coverages, deductibles and premiums and for sure, would be in the best position to inform you.

[lalab]

Yes. An independent broker would have intimate knowledge of all underwriters for this type of insurance including their respective coverages, deductibles and premiums and for sure, would be in the best position to inform you.

 

I hate growing up.

[rmorelan]

I hate growing up.

 

ha I like to think of all this as a fun puzzle - but then I enjoy optimization problems.

[schmitty]

ha I like to think of all this as a fun puzzle - but then I enjoy optimization problems.

 

Exactly..it's fun learning all this stuff. I moved out when I was 17 so I had to learn fast and it was fun!

 

As for renter's/condo insurance, do some online quotes and then speak with an agent. Make sure when comparing cost that everything is the same (or close). I.e. one policy may be much cheaper, but then when you compare them carefully it may offer very different things. For example, exceptions for certain valuables, higher deductibles, etc, etc. Ideally, you should walk through your place with a video camera (phone is fine) videotaping everything that you would need replaced if the unspeakable were to happen. Take pictures and keep electronic copies of documents relating to specific values you have and make sure they are covered (e.g. many policies have a very low limit of coverage for computers and require an add-on rider to cover them specifically).

 

I was with State farm for my renter's insurance for a long-time. It was good and you are assigned a local agent who you contact directly for any problems - very friendly and convenient. Now I am with TD because they gave us a WAY cheaper policy for our car and now condo insurance compared to State Farm for a better policy. Also, don't go nuts! You likely don't need like $100K worth of renter's insurance or something unless you collect furs or something crazy. Get what you need, but don't go overboard.

[rmorelan]

Exactly..it's fun learning all this stuff. I moved out when I was 17 so I had to learn fast and it was fun!

 

As for renter's/condo insurance, do some online quotes and then speak with an agent. Make sure when comparing cost that everything is the same (or close). I.e. one policy may be much cheaper, but then when you compare them carefully it may offer very different things. For example, exceptions for certain valuables, higher deductibles, etc, etc. Ideally, you should walk through your place with a video camera (phone is fine) videotaping everything that you would need replaced if the unspeakable were to happen. Take pictures and keep electronic copies of documents relating to specific values you have and make sure they are covered (e.g. many policies have a very low limit of coverage for computers and require an add-on rider to cover them specifically).

 

I was with State farm for my renter's insurance for a long-time. It was good and you are assigned a local agent who you contact directly for any problems - very friendly and convenient. Now I am with TD because they gave us a WAY cheaper policy for our car and now condo insurance compared to State Farm for a better policy. Also, don't go nuts! You likely don't need like $100K worth of renter's insurance or something unless you collect furs or something crazy. Get what you need, but don't go overboard.

 

ya the cost of this is going to be very low. Usually the min as I remember it was about 25K which is most likely tons.

[schmitty]

ya the cost of this is going to be very low. Usually the min as I remember it was about 25K which is most likely tons.

 

Yup...for Renter's I think we were paying around $20/month. For our condo insurance we now pay around $35 for a lot more coverage. Either way, definitely worth it.

[rmorelan]

another newbie LoC question for the banks that prefer instalments:

 

if I don't spend the full amount in one year, does the balance carry over to the next year?

 

oh absolutely - that is the point really.

[herewego]

I have another newbie question:

 

Say you spend $10,000 of your 1st year $50,000 allotment, if you pay back that $10,000 in full 6 months into 1st Year does the LOC reset back to $50,000 or are you at $40,000?

[schmitty]

I have another newbie question:

 

Say you spend $10,000 of your 1st year $50,000 allotment, if you pay back that $10,000 in full 6 months into 1st Year does the LOC reset back to $50,000 or are you at $40,000?

 

You will have $50,000. THis is a not a TFSA, the $50K limit is just that, you can borrow up to $50,000 total in a given year no matter what pattern of withdrawal and payment you have.

[Leon]

I have another newbie question:

 

Say you spend $10,000 of your 1st year $50,000 allotment, if you pay back that $10,000 in full 6 months into 1st Year does the LOC reset back to $50,000 or are you at $40,000?

 

The LOC is just a pool of money- you can take out as much and put back as much as you want as long as you operate within the 50K limit. The more you take out, the more interest you pay on it so if you have $$$, return it into the LOC to minimize interest.

[schmitty]

If you switch from one bank to another, with an LoC, how does that work?

 

Do you get hatemail from the previous bank?

 

Kidding right?

 

You just contact the bank you want to switch to and, believe me, they will make it as easy as possible for your to move your business over in a matter of a few days in most cases.