Loc: Rbc Vs Scotia During Residency

[singh_1988]

Hey everyone,

 

I know this question has been asked many times, more so in medical school boards, but not as much in here (at least from my search). Was wondering if there are any major differences between Scotia and RBC for LOC's during residency. I know we are all in unique financial situations (partners income, mortgages, etc), but in general terms are there any major pro's or con's between the two in residency. From what I understand:

 

1. Both remain at prime even during repayment

2. Both offer free banking accounts during residency (not sure after completion though)

3. Both offer similar credit cards

4. Both increase their limits during residency to around 240,000, but is case dependent if you need more.

 

Am I missing anything else? Im currently with scotia, but friends have been saying RBC is better during residency, but I can really find anything here or online at RBC to back that up.

 

Thanks in advance.

[rmorelan]

competition is high of course so the LOCs are very similar. Only small differences there structurally.

 

The actual limit is higher than 240K in the end - mine is 275K. Pretty automatic for the big players.

 

No frees till the end of residency. After that to be honest it won't matter - usually there is also no fees if you have a minimum balance that a lot of people would have as doctor.

 

The Credit cards are very similar. Small differences boiling doing at most to personal style.

 

One thing that you didn't mention that is important I think (and I get why most people don't automatically get this) is that your banker is actually a professional that works for you. As a doctor to be you are a lot more than a number at the bank - the relationship is a lot different. You are building a relationship actually more than just getting the LOC (which you will get  automatically as a med student pretty easily). It is about more than that. 

 

My banker advocates on my behalf to get things I wanted done financially. For staff doctors often the banker goes to the hospital to conduct business (you are that kind of client is my point). You have all of these perks that most don't get access too - it just starts with the LOC. Already talk about how it extends to mortgages. It extends beyond that as well.  The normal rules just don't apply, and you have to stop thinking like they do or you miss opportunities. This took me a bit to get my head around so I am hoping to speed up that process in others. It is weird - seriously almost feels like there are all these structural advantages to being a high income earner that mean you actually save more money than those left well off. It is a bit reversed in my mind but it is how it operates.

 

You can get the LOC anywhere - make sure you are also comfortable with them just like you would want to be comfortable with your doctor or lawyer. Doesn't mean you ignore they are a profit generating business - I mean you are also a profit generating one so basically so what? - you will need to be working closely with them on some BIG numbers through your career. I am on a first name basis with my banker and feel we can discuss some serious business.

[T.A.]

competition is high of course so the LOCs are very similar. Only small differences there structurally.

 

The actual limit is higher than 240K in the end - mine is 275K. Pretty automatic for the big players.

 

No frees till the end of residency. After that to be honest it won't matter - usually there is also no fees if you have a minimum balance that a lot of people would have as doctor.

 

The Credit cards are very similar. Small differences boiling doing at most to personal style.

 

One thing that you didn't mention that is important I think (and I get why most people don't automatically get this) is that your banker is actually a professional that works for you. As a doctor to be you are a lot more than a number at the bank - the relationship is a lot different. You are building a relationship actually more than just getting the LOC (which you will get  automatically as a med student pretty easily). It is about more than that. 

 

My banker advocates on my behalf to get things I wanted done financially. For staff doctors often the banker goes to the hospital to conduct business (you are that kind of client is my point). You have all of these perks that most don't get access too - it just starts with the LOC. Already talk about how it extends to mortgages. It extends beyond that as well.  The normal rules just don't apply, and you have to stop thinking like they do or you miss opportunities. This took me a bit to get my head around so I am hoping to speed up that process in others. It is weird - seriously almost feels like there are all these structural advantages to being a high income earner that mean you actually save more money than those left well off. It is a bit reversed in my mind but it is how it operates.

 

You can get the LOC anywhere - make sure you are also comfortable with them just like you would want to be comfortable with your doctor or lawyer. Doesn't mean you ignore they are a profit generating business - I mean you are also a profit generating one so basically so what? - you will need to be working closely with them on some BIG numbers through your career. I am on a first name basis with my banker and feel we can discuss some serious business.

 

hey

just wondering, do you have to pay interest during your study? that is, instead of it being accumulating, do you have to pay a minimum amount of interest per month, on the amount you have withdrawn?

[rmorelan]

hey

just wondering, do you have to pay interest during your study? that is, instead of it being accumulating, do you have to pay a minimum amount of interest per month, on the amount you have withdrawn?

 

it isn't backed by the government so yeah everyone with an LOC has to be pay interest only on the part that they actually used.

 

Students just use their LOC to pay the interest for the LOC. I mention this a few times elsewhere about that issues with the interest payments - the problem isn't that you cannot eventually pay off the debit but the cash flow impact during residency. Max out your LOC and you are making 700-900+ a month in payments from your salary. If interest rates rise you will be in a bit of trouble.

[T.A.]

it isn't backed by the government so yeah everyone with an LOC has to be pay interest only on the part that they actually used.

 

Students just use their LOC to pay the interest for the LOC. I mention this a few times elsewhere about that issues with the interest payments - the problem isn't that you cannot eventually pay off the debit but the cash flow impact during residency. Max out your LOC and you are making 700-900+ a month in payments from your salary. If interest rates rise you will be in a bit of trouble.

thanks for the reply, How does an LOC usually take the interest? does it subtract more from the LOC itself? or does it simply take out the money directly from a checking account that is attached to the LOC account?

 

(Sorry op for asking unrelated questions)

[newfie]

My LOC interest is taken from my chequing account (I just take money from my LOC and stick it in my bank account to pay the interest). I'm with RBC. It's funny, I called the other day to ask for an increase in my LOC and they were like, "Are you sure you just don't want the entire $250k? Because we can give it to you now." So it's certainly not difficult to get the loans you need.

[rmorelan]

thanks for the reply, How does an LOC usually take the interest? does it subtract more from the LOC itself? or does it simply take out the money directly from a checking account that is attached to the LOC account?

 

(Sorry op for asking unrelated questions)

 

RBC takes it from chequing (ha, used to annoy the heck out of me - if you forget to have the money in chequing you get an overdraft charge. So while simple to do, when you are up to your eyeballs busy, it is annoying). Scotia just takes it out of the LOC - which makes more sense as that is where the money is coming from anyway.

[Freedom]

Is RBC still a free account? Thought you had to move to their 14.95 no signature banking.

http://www.rbcroyalbank.com/RBC:olbopda_fq/professionals/residents-interns-plan.html

[NLengr]

I've been with three banks during my time as a med student/resident.

 

Scotia: Started with them, moved banks to negotiate a better mortgage rate. Ended up back with them in the end. Get a personal banker and they are keen to waive all kinds of things for you. Happy with the service. Will probably stay with them long term if possible.

 

RBC: also pretty good. Best if you are trying to negotiate a mortgage with the big banks. Also get a personal banking person. The online banking blows (or did when I was with them due to a terrible interface), maybe it's better now. The having to move money off the LOC to chequing, only to have it put back on the LOC is a pain in the ass (and may cost you fees if you forget).

 

BMO: terrible service. Tried to charge me for a personal banker. Not very flexible with anything. Trying to get anything done is like pulling teeth. Always "forget" to not charge you for free stuff. Ditched them asap.

[resident]

I went to RBC to increase my limit so I can pay my student loan off directly with my LOC (to save on interest). I met with a banker and she told me she would apply for a limit increase to 270k. Now she is emailing me back saying that I need to provide a "detailed budget". I wrote her and asked for specifics and she told me that when I originally applied I would have had to provide a budget so they could project how much I would need - I don't recall doing this and I was offered the max amount back then, no questions asked, no cosigner required. I wrote and told her I had no idea what budget form she was talking about, and asked again for specifics - does she need just salary info? How much I pay in rent? How much I pay for internet/food/clothes?

 

She wrote back and couldn't even tell me any specifics of WHAT budgetary info she was looking for, just told me she would "look for a budget sheet" to email me. Does this make sense? Is this happening to you guys? I don't feel like I should have to disclose this info to RBC on a pre-practicing professionals LOC.

[rmorelan]

I went to RBC to increase my limit so I can pay my student loan off directly with my LOC (to save on interest). I met with a banker and she told me she would apply for a limit increase to 270k. Now she is emailing me back saying that I need to provide a "detailed budget". I wrote her and asked for specifics and she told me that when I originally applied I would have had to provide a budget so they could project how much I would need - I don't recall doing this and I was offered the max amount back then, no questions asked, no cosigner required. I wrote and told her I had no idea what budget form she was talking about, and asked again for specifics - does she need just salary info? How much I pay in rent? How much I pay for internet/food/clothes?

 

She wrote back and couldn't even tell me any specifics of WHAT budgetary info she was looking for, just told me she would "look for a budget sheet" to email me. Does this make sense? Is this happening to you guys? I don't feel like I should have to disclose this info to RBC on a pre-practicing professionals LOC.

 

that is odd - is she a professional loan manager? This sort of stuff shouldn't happen. The max is 275K after all. This is all pretty standard. 

[The Ace of Spades]

I went to RBC to increase my limit so I can pay my student loan off directly with my LOC (to save on interest). I met with a banker and she told me she would apply for a limit increase to 270k. Now she is emailing me back saying that I need to provide a "detailed budget". I wrote her and asked for specifics and she told me that when I originally applied I would have had to provide a budget so they could project how much I would need - I don't recall doing this and I was offered the max amount back then, no questions asked, no cosigner required. I wrote and told her I had no idea what budget form she was talking about, and asked again for specifics - does she need just salary info? How much I pay in rent? How much I pay for internet/food/clothes?

 

She wrote back and couldn't even tell me any specifics of WHAT budgetary info she was looking for, just told me she would "look for a budget sheet" to email me. Does this make sense? Is this happening to you guys? I don't feel like I should have to disclose this info to RBC on a pre-practicing professionals LOC.

This is happening to me currently with National Bank as well.  My MD Management advisor told me that banks are beginning to clamp down on the professional student LOCs now and giving increases based on demonstrated need rather than "just max it out".  I had considered going to Scotiabank but have had pretty poor customer support re: transferring LOC.

[rmorelan]

This is happening to me currently with National Bank as well.  My MD Management advisor told me that banks are beginning to clamp down on the professional student LOCs now and giving increases based on demonstrated need rather than "just max it out".  I had considered going to Scotiabank but have had pretty poor customer support re: transferring LOC.

 

interesting - not exactly an encouraging trend if it continues. It is very hard for students to actually make a meaningful budget on these things or predict exact expenses.

 

considering how little they actually make on LOCs (if they are actually profitable at all really) I can see why they would want to careful. Having some back pressure may be somewhat useful as a shield for if/when interest rates rise etc.

 

you have heard of issues transferring to Scotia? It is also interesting how variable people find things. For me it was a completely seamless, trivial operation to move to them.

[newfie]

I went to RBC to increase my limit so I can pay my student loan off directly with my LOC (to save on interest). I met with a banker and she told me she would apply for a limit increase to 270k. Now she is emailing me back saying that I need to provide a "detailed budget". I wrote her and asked for specifics and she told me that when I originally applied I would have had to provide a budget so they could project how much I would need - I don't recall doing this and I was offered the max amount back then, no questions asked, no cosigner required. I wrote and told her I had no idea what budget form she was talking about, and asked again for specifics - does she need just salary info? How much I pay in rent? How much I pay for internet/food/clothes?

 

She wrote back and couldn't even tell me any specifics of WHAT budgetary info she was looking for, just told me she would "look for a budget sheet" to email me. Does this make sense? Is this happening to you guys? I don't feel like I should have to disclose this info to RBC on a pre-practicing professionals LOC.

 

I experienced this to some extent when I went to increase my loan from 200 to 220k, which I found odd. I ended up getting my increase without a problem, but I did have to provide them with more information than I've had to in the past. I thought it was interesting, since the max is 250 and I wasn't even asking for that.

[rmorelan]

I wonder if something new happened - someone or some people defaulting etc.

 

They changed the rules in having people actually starting school prior to the LOC (as opposed to earlier in the summer) when someone basically stole the LOC and fled. With the margins on the loans so thin there isn't much room for anything silly to have happen.

[ellorie]

Are people managing to get RBC to waive the monthly account fee?  I'm getting charged for it suddenly, and I remember hearing that other banks/RBC continue to waive it during residency.

[rmorelan]

Are people managing to get RBC to waive the monthly account fee?  I'm getting charged for it suddenly, and I remember hearing that other banks/RBC continue to waive it during residency.

 

first check with them - sometimes it is a paperwork issue. At scotia for a bit I was charged for instance - but that was very quickly corrected

 

I even have fees waived at another bank I don't have my LOC with as a resident - because I am still technically a full time student.

[ploughboy]

Are people managing to get RBC to waive the monthly account fee?  I'm getting charged for it suddenly, and I remember hearing that other banks/RBC continue to waive it during residency.

 

I have not paid a monthly account fee to RBC in the last six years.  Get them to fix it for you.

[FamMed14]

For Scotiabank - does anyone have a contact for a personal banker that knows all about resident/new staff banking in the Toronto area? My current one is a nice enough guy but basically clueless about how this works for us.