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Banking advice and solutions for medical residents

You're focused on your medical career, let us focus on your financial well-being

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Advice for medical residents

Your medical residency can bring new financial questions. Finding the right balance between paying your medical school debt and starting to enjoy the benefits of your new income can be stressful. You deserve specialized financial advice and answers to your financial questions to help you navigate this important chapter in your career. We break down some of the top questions medical residents ask.

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Frequently asked questions

Residency is often the first chance for physicians-in-training to start thinking about paying down debt. As a medical resident, you may have a combination of government student loans and a student line of credit. For government student loans, you typically have at least six months following medical school before you need to start repaying. The terms of your student line of credit will depend on your financial institution.

The Scotia Professional® Student Plan line of credit requires no payments until you’ve finished residency, plus offers another two years repayment grace period. The grace period can be beneficial when you are new to practice as it provides the flexibility to use the line of credit to help cover expenses as you transition to practice.

For more information about your borrowing options and when you should start repaying your medical school debt, read MD Financial's blog.

Salaries for your first year of postgraduate work (PGY-1) are typically in the $60,000 range, so depending on where you live, it could be possible to start paying down your debt or investing, or both. Your feelings about debt should be taken into account: if being in debt makes you uncomfortable, there’s nothing wrong with considering paying down a portion of it first. 

Once you understand the nature of your debt and your feelings about it, as well as the benefits of paying down debt versus investing, you’ll be more confident when you make decisions about your financial plan. 

Determine if you should pay off debt or start saving as a medical resident by reading MD's article.

Choosing to rent or buy is a very personal decision depending on your short and long-term plans as well as your cashflow and level of comfort in managing your debt. 

Many residents continue to rent until after they enter practice. One advantage to renting is, it could give you the flexibility to change your location and time to decide where you will settle down. 

There are some upfront costs of home ownership — as well as the ups and downs of house prices in the short term — that means  it  may be unwise to buy unless you plan on keeping the home for several years at minimum or you want to use it as an investment.

If you are considering buying a home, there are a lot of factors to consider when choosing a mortgage.  In addition to how much can you afford, there is the question of fixed vs variable rates, an open vs a closed term, the payment options, and much more.  A Scotiabank Healthcare Specialist will take the time to understand what is important to you, explain the different features of a mortgage, and find a customized solution to suit your specific needs.  Also, at Scotiabank, residents, fellows and new to practices physicians, can qualify for a mortgage based on their estimated projected income.18

No matter what life stage you are in, tax time can be challenging. As a resident, you should try to make sure you benefit from all the deductions and credits you are eligible for and have a clear understanding of how COVID government subsidies may impact your taxes this year. Whether it’s about claiming the interest on your student loan and your professional dues or understanding how to invest to minimize the tax you owe, the right advice can make all the difference. In collaboration with your tax and legal professionals, an MD Advisor* can help you build a financial plan that is as tax efficient as possible and will review your plan regularly to ensure your tax planning strategy stays on track.

For helpful tips on tax deductions and credits you qualify for as a resident, read MD's article.

Banking solutions for medical residents

Scotiabank has worked with MD Financial Management to bring you the Scotiabank Healthcare+ Physician Banking ProgramΔ with banking solutions that are designed with the unique needs of medical residents in mind. In addition to the Scotia Professional® Student Plan Line of Credit, as a resident you can receive savings and rewards on personal banking solutions to help you manage your finances. 

Scotia Professional® Student Plan Line of Credit

  • Up to $350,000 at Prime -0.25%1 fully available at account opening 
  • No payments required until you're finished residency, plus another two years repayment grace period2
  • Option to continue with a revolving line of credit post-schooling and residency 
  • No annual fee

Scotiabank Preferred Package Chequing Account

  • Monthly account fee waiver (value of $16.95/month)
  • Unlimited free Interac e-Transfer transactions
  • 1 free non-Scotiabank ABM withdrawal per month in Canada3
  • Earn points on every purchase with choice of reward program (SCENE® or Scotia Rewards®)4
  • No monthly fee on a U.S. Dollar Daily Interest Account5

Select one or both cards below to get a combined pre-approved credit of up to $10,000

Scotiabank Passport™ Visa Infinite* Card

  • Save the annual fee ($139 annual fee waived continuously  for Scotia Professional® Student Plan customers6; customers not in Scotia Professional® Student Plan receive a first-year fee rebate only)
  • Earn up to 40,000 bonus Scotia Rewards® points in your first year7 (value of up to $400)
  • Earn up to 2X Scotia Rewards® points on eligible purchases8
  • Complimentary airport lounge membership including 6 free visits per year9 (value of $300)
  • No foreign transaction fees on foreign currency purchases made on your card (only the exchange rate applies)10 and comprehensive insurances11
  • Preferred annual interest rates are 19.99% on purchases and 22.99% on cash advances
  • To qualify, the customer must have a minimum annual income of $60,000 or a minimum household income of $100,000 or a minimum assets under management of $250,000

Scotiabank Gold American Express® Credit Card

  • Save the annual fee ($120 annual fee) rebated12 or waived continuously13
  • For a limited time, earn up to 40,000 bonus Scotia Rewards® points in your first year14 (value of up to $400)
  • Earn up to 5X Scotia Rewards® points on eligible purchases15
  • No foreign transaction fees on foreign currency purchases made on your card (only the exchange rate applies)16 and comprehensive insurances11
  • Preferred annual interest rates are 19.99% on purchases and 22.99% on cash advances

Mortgages and Home Equity Lines of Credit

Learn about mortgage solutions
  • Flexible solutions with preferred rates for residents, fellows and physicians on fixed, closed and variable rate mortgage terms17
  • For residents, fellows and new-to-practice physicians, the mortgage amount qualified for is based on estimated projected income18 
  • Preferred interest rate of Prime -0.25%1 on Scotiabank Personal Line of Credit under the Scotia Total Equity® Plan (STEP)
  • Option to earn Scotia Rewards® points on your mortgage advance and cashback on your annual interest payments19
  • Miss-a-Payment and Match-a-Payment option20
  • Portability of your mortgage

Ready to talk?

Find the right Advisor for your personal needs.

Scotiabank Advisor

To learn more, contact an Advisor or call Scotiabank Healthcare+ at 1-888-222-3918

MD Advisor

Already an MD client or want to talk about your financial plans? Contact your MD Advisor or visit md.ca