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Mikka

PSLOC - rep or local branch?

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Hi all, 

Does it matter if I start looking into a PSLOC with a designated bank rep or with the advisor I usually deal with at my local branch? Is it more beneficial to contact the specific rep? 
 

Any insight on the topic is appreciated! 


 

 

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Either or both. I don't think it really makes a difference - if you don't like the offer from one, check with the other. Just don't settle for anything less than prime + 0%.

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PM if you have any questions. 

 

I went through a rep who ended up referring me to the small business advisor at a local branch. Whatever works for you. For example, if you are going to another province and want to connect with the local rep that is good, but they will advise you as such. Check with all the major financial institutions, however through my research ScotiaBank has the most favourable terms.  

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Same as michlechuk; I contacted my advisor, who referred me to the small business advisor at the same branch, as the small business advisor handles PSLOC and would be able to answer my questions better.  

RBC is currently offering prime - 0.25%, and scotia is offering prime + 0%.  Scotiabank just wanted me to sign a form and send my acceptance offer; I didn't have to send them anything else.  RBC wanted everything - mine and my husband's full tax returns from our accountant, copies of every single tax slip for last year for myself and my husband, proof of my savings/TFSA/RRSP account amounts, my husband's payroll slips, my right arm and left leg (I have near perfect credit and Scotia wanted nothing from me, possibly because I have some accounts there).  I didn't bother going through the hassle with RBC after the advisor told me she's never done a PSLOC application before, and did not hide the fact that she was quite annoyed she was assigned to do this.  

Edited by Rds
correction

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On 6/11/2020 at 10:25 PM, Rds said:

Same as michlechuk; I contacted my advisor, who referred me to the small business advisor at the same branch, as the small business advisor handles PSLOC and would be able to answer my questions better.  

RBC is currently offering prime - 0.25%, and scotia is offering prime + 0%.  Scotiabank just wanted me to sign a form and send my acceptance offer; I didn't have to send them anything else.  RBC wanted everything - mine and my husband's full tax returns from our accountant, copies of every single tax slip for last year for myself and my husband, proof of my savings/TFSA/RRSP account amounts, my husband's payroll slips, my right arm and left leg (I have near perfect credit and Scotia wanted nothing from me, possibly because I have some accounts there).  I didn't bother going through the hassle with RBC after the advisor told me she's never done a PSLOC application before, and did not hide the fact that she was quite annoyed she was assigned to do this.  

That is much more thorough I've ever heard of. Was the part about prime - 0.25% correct though? That is also highly unusual for law students, based on the research I did last year in securing my LOC but also the general sentiment on this forum is that prime is as good as it gets.

I don't know that I would have dealt with an annoyed rep who wanted so much documentation either, but prime - 0.25 is an interesting twist.

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9 hours ago, TobyFlenderson said:

That is much more thorough I've ever heard of. Was the part about prime - 0.25% correct though? That is also highly unusual for law students, based on the research I did last year in securing my LOC but also the general sentiment on this forum is that prime is as good as it gets.

I don't know that I would have dealt with an annoyed rep who wanted so much documentation either, but prime - 0.25 is an interesting twist.

Yes, they are offering prime minus 0.25% (I believe it's advertised on their website as well), but I forgot to mention it was also only for a maximum of $90,000 (scotia was $135,000).  :)   I spent 3 weeks going back and forth with Royal, as the woman didn't know what she was doing (she finally admitted she had never done a PSLOC before). She first told me that all PSLOC's required a cosigner, I told her that's not true, then she told me she needed all the accounting information for my business, I told her no she doesn't, then she wanted all of our personal tax information from our accountant (full tax return), and I finally gave up on her.  I have near perfect credit, very little personal debt (no balances on any cards, LOCs or personal loans, no student loan debt) and I have never had to go through this much hassle for any loan before. 

Edited by Rds

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Thank you all for your responses! 

I ended up contacting my usual advisor at RBC and he and one of his senior colleagues assisted me!
I was offered $125k at prime, loan accessible through articling, no cosigner required, and I just had to submit my proof of enrolment 

I did ask about the prime - 0.25% as was advertised on their website, but was told that the option was not available for JD programs. 

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3 hours ago, Mikka said:

Thank you all for your responses! 

I ended up contacting my usual advisor at RBC and he and one of his senior colleagues assisted me!
I was offered $125k at prime, loan accessible through articling, no cosigner required, and I just had to submit my proof of enrolment 

I did ask about the prime - 0.25% as was advertised on their website, but was told that the option was not available for JD programs. 

good for you.

 

Edited by Luckycharm

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My experience, shaped by both my applications and my partner's experience with a medical LOC, is that there is a lot of luck involved. You MAY get lucky with the person at your local branch, if they happen to have much experience with professional lines of credit - but because they are a bit of a niche product, and most branches are not that close to a University, you are also quite likely to get someone who has no idea what they're doing with this product. This can result not just in a slower process, but in being rejected incorrectly, or being told that you need all sorts of documentation that you really don't.

When my partner started med school, I asked her to try CIBC first, just for ease of logistics, since we already do most of our banking with them. However, their service was so abysmal that my partner walked out of their demanding that I cancel all our existing banking with them. ;) She then wanted to try TD, and was fortunately connected with the right rep in Calgary who knew how to process a med LOC application. Super easy, asked for very little documentation, etc. Now, a few years later, we're in Victoria, and the local TD rep has been awful to deal with just to request a slight increase in the LOC she already has (because they are now advertising a much higher limit)... so she is now switching to Scotia! Scotia simply seems to have good reps who are ready to most easily get these packages to professional students in every market. But I am sure there are still some Scotia reps out there, maybe at smaller branches, who would have no idea what you're talking about when you wanted to apply for a JD LOC. It's really an individual thing.

-GM

PS I'd love to hear whether any JD student has actually gotten prime -0.25%. It was my understanding that the "minus" was purely for med students/residents. I tell you, if they find out that law students are getting -0.25, the doctors will be demanding -0.50 soon! ;)

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22 minutes ago, GrumpyMountie said:

My experience, shaped by both my applications and my partner's experience with a medical LOC, is that there is a lot of luck involved. You MAY get lucky with the person at your local branch, if they happen to have much experience with professional lines of credit - but because they are a bit of a niche product, and most branches are not that close to a University, you are also quite likely to get someone who has no idea what they're doing with this product. This can result not just in a slower process, but in being rejected incorrectly, or being told that you need all sorts of documentation that you really don't.

When my partner started med school, I asked her to try CIBC first, just for ease of logistics, since we already do most of our banking with them. However, their service was so abysmal that my partner walked out of their demanding that I cancel all our existing banking with them. ;) She then wanted to try TD, and was fortunately connected with the right rep in Calgary who knew how to process a med LOC application. Super easy, asked for very little documentation, etc. Now, a few years later, we're in Victoria, and the local TD rep has been awful to deal with just to request a slight increase in the LOC she already has (because they are now advertising a much higher limit)... so she is now switching to Scotia! Scotia simply seems to have good reps who are ready to most easily get these packages to professional students in every market. But I am sure there are still some Scotia reps out there, maybe at smaller branches, who would have no idea what you're talking about when you wanted to apply for a JD LOC. It's really an individual thing.

-GM

PS I'd love to hear whether any JD student has actually gotten prime -0.25%. It was my understanding that the "minus" was purely for med students/residents. I tell you, if they find out that law students are getting -0.25, the doctors will be demanding -0.50 soon! ;)

I did. I leveraged an offer to another professional program offering prime less 0.25% into an approval regardless of which program I attended. 

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Usually this goes through small business advisors at banks. Have your advisor refer you to one.

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On 6/19/2020 at 9:39 AM, Mikka said:

Thank you all for your responses! 

I ended up contacting my usual advisor at RBC and he and one of his senior colleagues assisted me!
I was offered $125k at prime, loan accessible through articling, no cosigner required, and I just had to submit my proof of enrolment 

I did ask about the prime - 0.25% as was advertised on their website, but was told that the option was not available for JD programs. 

Prime-0.25 is usually for medial and dental schools not JD. Also, do you have to make minimum interest payments during school with RBC? I applied through Scotia and it's no minimum payment, interest still accrues and gets added to the balance. It's a bit scary that it can snowball.

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