Loans Alberta

Frequently Asked Questions About Loans in Alberta 

How do I get a loan in Alberta?

To qualify for a loan in Canada’s fourth largest province, there are three basic requirements:

1. You must be at least 18 years old
2. You must be a resident of the province
3. You must have an active bank account

Then you must meet your chosen lender’s specific eligibility requirements. These vary a bit lender to lender, but usually relate to credit score, income, and amount of existing debt. It’s fairly common for a lender to require proof of continuous income and a minimum credit score of 600. However options do exist via alternative lenders for borrowers who do not meet these conditions.

Where can I get a loan from in Alberta?

Alberta is home to a thriving loan market and, as such, has many different providers for its four million residents to choose from. This includes:

• Banks
• Credit unions
• Mortgage companies
• Auto loan providers
• Online lenders
• Payday lenders
• Credit card companies

• No credit check lenders
• Bad credit loan providers
• Vehicle specialists
• Other financial service companies
• Government of Canada (for certain mortgages and commercial loans)
• Government of Alberta (for small business loans, farm loans, and financing for minority-led businesses)

Smarter Loans has been selected as one of the best places to find a loan in Calgary, according to The Best of Calgary. 

What kind of loan can I get in Alberta?

Loans come in all shapes and sizes, and Alberta’s many financing providers have loans suited to just about every need. This includes:

• Mortgages
• Auto loans
• Truck/trailer loans
• Bad credit loans
• Farm loans
• Personal loans
• Credit cards
• Commercial loans

• Invoice loans
• Equipment loans
• Home equity lines of credit
• Payday loans
• Installment loans
• Same day loans
• Title loans
• Debt consolidation loans

If you have a very specific financing need (for example, you’re buying a house) then it’s clear what kind of loan you want (a mortgage); but if you have more general needs (for example, help paying your monthly bills) then there are a few different loans that may suit you. Personal loans, credit cards, same day loans, payday loans, and home equity lines of credit can all be used for multiple or varied purposes.

Can I get a small business loan in Alberta?

Alberta has over 160,000 small businesses, and most will need to access business financing at some point. A small business loan can be used for almost anything: equipment purchase or repair, vehicles, inventory, working capital, property, and so on. To qualify for a business loan, you generally need:

1. A business history lasting at least two years, including bank statements and tax returns
2. A business plan
3. Proof of revenues, profitability, and projected future revenues
4. Collateral (for property, equipment, invoice and vehicle loans)
5. Credit history for the business and the business’s owners

Not every business has all of these – for example, startups will not have a long business history – but while getting a business loan from a traditional lender may be harder in these circumstances, there are still alternative lenders who can help. And some businesses will qualify for help from the federal or provincial government.

Can I get a loan in Alberta with bad credit?

Yes, it is possible to get a loan with bad credit in Alberta, although you may have to go to a specialist bad credit provider. The average credit score in Alberta is 650 (lower in Edmonton, at 625), and most traditional lenders like banks have a minimum credit score requirement of 600. This means that if you fall below the 600 threshold or have a bankruptcy in your past, then you may struggle to gain loan approval through the standard routes.

However alternative lenders usually have more flexible eligibility requirements, and may accept lower credit scores – especially if you have extenuating factors, such as high income. There are also dedicated bad credit loan providers who solely work with consumers with a chequered financial past. Just bear in mind that bad credit usually means you’ll end up paying a higher interest rate.

How much can I borrow in Alberta with a personal loan?

The amount you can borrow with a personal loan will depend heavily on your income, your credit score, and if you have other debts. The key is that the lender will always want to verify that you’ll be able to pay back the loan. Loan amounts vary widely, from as little as $500 to as much as $50,000. To put that in context, the average Albertan has over $29,000 in consumer debt.

Can I get a mortgage in Alberta?

Buying a house is one of the biggest decisions you can make, and getting a mortgage is just as serious. A mortgage company will want to ensure you have the ability to make your monthly repayments, so they’ll want to see:

• Proof of Canadian residency
• ID showing age of majority (18 in Alberta)
• Proof of sustained income (usually for a minimum of 2 years)

• Proof of continued employment
• Your credit history
• Size of your down payment (minimum required is 5% of purchase price) and its origin

These are the basics, but there may be other requirements as well, such as more detailed financial documents, bank statements, tax returns, etc. It is worth noting that the proof of income requirement can sometimes cause a little trouble for the self-employed or those with non-traditional income streams, but as long as you can exhibit the capacity to make your repayments, you should be OK.

How do I choose the right loan for me?

Choosing a loan may seem overwhelming, but it need not be. The process can be broken down into some simple steps:

• Step One: Understand what loan you need – what it’s for, how much you need, for how long, and so on.
• Step Two: Find loan providers that have what you need.
• Step Three: Narrow down this list of providers by examining their eligibility criteria, and weeding out those who won’t approve you. This means you should know your credit score, your income, and how much other debt you have.
• Step Four: Check the reputability of the companies you are considering to eliminate any untrustworthy providers.
  Step Five: Compare costs to find the best deal. This means considering interest rates, loan term, and fees.