https://www.scotiabank.com/ca/en/personal/loans-lines.html
what do you need to apply for a loan?
You must be over 18 / 19 (minors cannot sign contracts) and a resident of Canada. You need to also have a chequing or savings account to receive money and make principal / interest payments.
A lender will want to see:
- 2 pieces of government-issued photo ID and proof of address.
- Where your income comes from / how much you earn - they'll ask for a recent paycheque, letter from your employer, or tax return.
https://www.cibc.com/ca/loans/loan-comparison-results.html?pel,pcl,rrsp
https://www.tdbank.com/personal/personal_loans.html
http://www.rbcroyalbank.com/personal-loans/compare-loans.html
https://www.nbc.ca/personal/borrowing.html
Choosing a lender for you term loan / line of credit
Look for low interest rates and payment terms that suit you.
Financial institutions don't post rates for personal loans. You need to apply online or call / visit a lender to find out what rate you may get.
- Rates are negotiable - to an extent. Your negotiating position largely depends on your credit history and customer standing with the lender.
They do post one rate that serves as a reference point for all their variable-rate lending products. It's called the prime rate.
- Lenders quote variable interest rates as "prime" plus a percentage, for example "prime" +1%. As the prime rate changes, so will the loan's interest rate.
- Interest on fixed rate loans is quoted as a percentage, for example 6.5%. When you are quoted this rate as you apply for the loan, you can subtract from it the prime rate effective at the time. This way you can compare the fixed and variable loans you are offered. This is only for comparison - the interest on your fixed loan will stay the same for the entire term of the loan and will not change even as prime rate changes.
- Each bank sets its own prime rate, but the Big 5s usually all have the same prime rate.
Prime rate is currently 4.70% (as of September 2022).
You can check what prime rate is on the Bank of Canada's website:
- https://www.bankofcanada.ca/rates/banking-and-financial-statistics/posted-interest-rates-offered-by-chartered-banks/
- https://www.bankofcanada.ca/rates/daily-digest/
Lenders compete to have the lowest rate. Make sure to shop around.
- Find a few lenders who are interested in lending you money.
- Select the lender with the lowest rate. With their offer in hand, go to your main bank. Allow them the courtesy of matching your best rate. They may do so to keep your business.
- If you can't find a lender willing to lend you money, ask potential lenders to consider alternatives, like a co-signed loan or a secured loan. The lender may also consider lending you a smaller amount. Ultimately, if you can't afford something and nobody is willing to lend you money, delay the purchase and, in the meantime, save some money / work on improving your credit score.
Here are a few lenders (the 'Big 5') to get you started on your research (links checked December 26, 2020).
https://www.bmo.com/main/personal/loans-line-of-credit#loan_vs_line_of_credit