LOC Moves, Hotel Hacks, and a Rate Cut ✂️

This month’s Money Rounds shows you how to unlock hotel discounts using your hospital ID, breaks down the truth about investing with your line of credit, and explains what the Bank of Canada’s latest rate cut means for your debt. Simple tips, smarter decisions, and a little relief on the horizon. Let’s get into it.

In this month’s email:

• Quick Wins 👍️ The Hotel Hack Your Already Qualify For…

• From Debt to Doctor 🩺 The Truth About Investing Your LOC

• Pulse Check 🫀 LOC Relief Incoming? What the BoC Just Signalled.

👇 ON SALE: The Financial Playbook is packed with the tips, tricks, and money moves I wish someone handed me in first year. Discounted at $19 for a limited time!

The Hotel Hack You Already Qualify For (But No One Tells You About) 🛎️ 

Ever wonder how some students are staying in Fairmonts while you’re splitting a motel room during CaRMS interviews? Here’s the deal. You already qualify for government hotel rates, and you don’t need to pull any strings to use them. All you need is your hospital ID badge.

Most major hotel chains including Fairmont, Marriott, Hilton, and Hyatt offer discounted “Government” or “Public Sector” rates. These aren’t just small savings. We’re talking fifteen to thirty percent off per night at high-end hotels that usually go for over three hundred dollars. Sometimes these rates also include perks like free breakfast, waived resort fees, or parking.

And yes, medical students, residents, and hospital-affiliated staff almost always qualify. If you’re rotating through a hospital or doing electives, your ID badge is typically enough.

How to Use the Government Rate:

1. When booking online Go to the hotel’s official website and look for a checkbox or drop-down menu labeled “Government Rate” or “Government and Military.” Click it. You’ll usually see a lower price appear instantly.

2. At check-in Show your hospital ID or medical school badge when you arrive. They don’t usually ask for anything else. No need for pay stubs or employment letters. Just your name and your badge.

Pro Tip 💡 If you’re not sure whether you qualify, call the hotel before booking. Most front desk agents are familiar with how it works and can confirm for you right away.

This little-known trick is perfect for CaRMS travel, conferences, electives, or even a quick weekend getaway when you need a break from call. Once you use it, you’ll wonder why you ever paid full price.

It’s one of those perks that comes with being in medicine. No forms. No hassle. Just flash your badge and enjoy the upgrade.

Free Money or Fast Trap? The Truth About Investing Your LOC 📈 

When you are a medical student with a huge line of credit it can be tempting to look at that unused balance and see “opportunity.” The banks are offering you hundreds of thousands of dollars at prime minus a quarter. The markets are full of stories about people who invested during downturns and came out rich. On paper it feels like a once-in-a-lifetime arbitrage. Borrow cheap, earn high, graduate with more money. Right An arbitrage is when you make a profit by taking advantage of a difference in price between two places without taking much risk. Think of buying something cheap at one store and selling it immediately at another store for more money. The gap between the two prices is your profit. In theory your LOC at a low interest rate and the stock market with a higher average return looks like the same thing.

Here is the reality. A line of credit is not free money. Interest compounds even at a low rate. The bank can change the terms at any time. More importantly, investing with borrowed funds magnifies both gains and losses. The same leverage that looks great in a bull market can ruin your sleep when markets drop. It is not the same as contributing to an RRSP from your paycheque. It is debt layered on top of future debt.

For most medical students and residents, the smarter play is to use your LOC as a safety net for emergencies and education costs rather than a speculative investment fund. If you want market exposure, start with small amounts of your own cash through an all in one ETF in a TFSA. This gives you time in the market and learning experience without turning your life into a leveraged bet.

Think of it this way. Residency already feels like leverage on your time and energy. Do you really want leverage on your money too. Pay for your training, protect your cash flow, and start investing your own earned money as soon as you can. It is slower, but it is safe and sustainable. That is how you go from debt to doctor without a financial ulcer.

Key Takeaway 🔑 

Just because you can invest with borrowed money doesn’t mean you should. Your line of credit is a tool to get you through training — not a shortcut to wealth. Invest your own cash when the time is right, and keep your debt strategy simple, safe, and sustainable.

LOC Relief Incoming? What the BoC Just Signalled 🎙️ 

The Bank of Canada finally made a move. After holding rates steady for months, they announced a 0.25% cut to their overnight rate. That may not sound like much, but if you are a medical student or resident with a six-figure line of credit, it is a small but meaningful win.

This cut brought Canada’s prime rate down to 4.70%, which means if you are on a standard prime minus 0.25% deal from a major bank, your new borrowing rate is 4.45%. Compared to the 7% range we saw not long ago, this is a breath of fresh air.

So why did the Bank of Canada cut now? Inflation has cooled faster than expected, economic growth is slowing, and the Bank is trying to avoid tipping the country into a deeper slowdown. This move also signals the start of a potential rate-cutting cycle — and more cuts could be coming if inflation stays under control.

For students and residents, this is the first real sign of interest relief in over two years. Even though you likely do not have to make payments during training, this lower rate slows down how fast your balance grows. That matters. It means less compounding, smaller eventual repayments, and a little more breathing room if you are borrowing for tuition, rent, electives, or day-to-day life.

This is also a good time to reset your mindset. For a while, LOCs felt like free money. But those years are gone. A 4.45% interest rate still adds up quickly on large balances. If you are tracking your LOC at all, this is a moment to revisit your borrowing habits, your monthly spending, and your long-term plan.

We are not back to rock-bottom rates. But for the first time in a long time, we are moving in the right direction.

Until next month…

Christian, Founder of Budget Your MD

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