i had LOC with Scotia.
You have to open a checking account with Scotia bank.
You will see one LOC account with limit indicated. Say $41,000.
If you don't do anything, there will be no interest charged.
When you need say $15,000 to pay certain things. You transfer $15,000 from LOC account to Checking account (on-line) and pay the $15,000 to whatever by the checking account via a check or direct payment etc. Interest will be charged on the $15,000 immediately. You will see the interest being charged by the next LOC statement date. In my case, the monthly interest will add to the LOC.
say you have used $20,000 in Sept on your $41,000 LOC. On next statement date, you will see the LOC you took out $21,000 plus whatever interest (say $240) $21,240.
You have to monitor your LOC closely and try not to leave money on checking account. If you receive any money (from OSAP/bursaries), you should pay down the LOC to reduce your interest.
Question that I didn't know. ( I didn't use the maximum because of bursaries)
Will interest accrued counted as part of LOC? I gave an example of $240 interest for Sept. The total interest for the first year could added up to over $2,000. The interest will be higher every year if you draw down the LOC each year. The total interest over 3 years may reach $10,000.
If the $41,000 LOC includes interest accrued, then the actual funds available for use will be reduced by the interest accrued.