Loans New Brunswick

Frequently Asked Questions About Loans in New Brunswick

Do I qualify for a loan in New Brunswick?

To qualify for a loan in New Brunswick, you must be:

1. At least 19 years old, with proof of ID
2. A resident of the province
3. In possession of a bank account

These are the most basic requirements, but there are more complex ones that vary by lender and/or loan type. For example, it’s common for lenders to require a minimum credit score of 600 and to need to see proof of income. Larger loans, like mortgages, have even more stipulations, while smaller loans are generally easier to qualify for. There are lenders who waive certain criteria – for example, some lenders are happy to work with customers with lower credit scores. You will always need to check a specific lender’s eligibility rules to ensure you qualify, before you apply for a loan.

How long does it take to get a loan in New Brunswick?

Not all lenders work at the same speed, and who you go to will dictate whether you are waiting days or weeks for your loan. Traditional lenders, like banks and credit unions, have longer processing times, and it’s common to be waiting a few weeks for a loan through them. If you need to go into a branch to settle your loan details and live in rural New Brunswick, this can narrow your options significantly and compound delays. Luckily, over 75% of New Brunswickers have internet access, and online lenders work quickly, with a typical turnaround time of just a few days. And for those with urgent needs, there are same day lenders (online) available for certain smaller loans.

Where can I get a loan in New Brunswick?

New Brunswick’s small size means that it doesn’t have the breadth of lenders as some of the larger provinces, but there are still options for locals to choose from. Lenders come in many forms, but they all fall into one of four main categories:

• Banks and credit unions
• Online lenders
• Alternative financial companies (including auto loan providers, boat loan companies, etc.)
• Payday lenders

The type of loan you need and your personal financial circumstances will dictate which lender is best for you.

How do I choose the best New Brunswick lender for me?

Choosing the right lender starts with understanding which lenders have the product you need. Not every lender offers every type of loan; there’s no use going to an auto loan company for a mortgage! So have a clear idea of what you need – how much, for how long, what it’s for, and so on. Then you must consider your own personal circumstances – your credit score, income, and existing debts. These factors impact which lenders will approve you.

Once you have a list of New Brunswick lenders who have what you need, and who will work with you, it’s time to compare costs. Consider interest rates, loan term, and all associated fees to find the best deal. And always remember to check a company’s past customer reviews to verify their reputability – a great deal may not be so great if the company has terrible service.

What can I use a loan for in New Brunswick?

New Brunswick’s 750,000+ residents may need a little extra cash for all manner of reasons, and there are loans to cater to every need. You can get a loan to:

• Buy property
• Buy a car
• Buy another vehicle, such as a truck, trailer or boat
• Renovate your home
• Pay monthly bills

• Cover the cost of a vacation, trip, wedding or other special event
• Pay for emergency expenses, such as medical or veterinary bills
• Pay for home or car repairs
• Fund a business
• Consolidate existing debts

Some loans are obviously purpose specific, such as mortgages for purchasing property, while others – like personal loans – can be applied to more general uses.

How do I get a business loan in New Brunswick?

Qualifying for a business loan is a little more involved than qualifying for a personal loan. A business needs to have:

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

These are the standard requirements for a private commercial loan. However, options exist for those who can’t meet the above criteria, or who are searching for a more affordable option. New Brunswick is home to nearly 30,000 small businesses, and there are both federally and provincially-sponsored programs to help local businesses access financing.

Can I get a loan in New Brunswick if I have bad credit?

The average credit score in New Brunswick is a little lower than other provinces, at 628. The threshold for most standard loans is a credit score of 600, so a good number of New Brunswickers fall into the “poor” credit category. This doesn’t mean getting a loan is impossible, as many alternative lenders will work with lower credit scores, either as an exception (for example, if you have high income), or as policy – by specifically gearing themselves as bad credit lenders. Just bear in mind that you will probably have to pay more in interest for a bad credit loan.

What do I need to get a mortgage in New Brunswick?

New Brunswick is home to Canada’s lowest house prices, with the average just $180,385. This is great news for prospective home buyers, as qualifying for a mortgage starts with your down payment. The government has a minimum required deposit of 5% for houses valued under $500,000 – so in New Brunswick the average required down payment is just $9020. Next, a lender will want to know your personal details: your age, address, credit score and monthly income, as well as information regarding your existing debt payments. These factors will influence how much you can afford to borrow. Some lenders will not work with people who have non-traditional income streams or a poor credit history, but others may be more forgiving – as long as you can demonstrate an ability to pay your monthly mortgage payments.