Where’s the best place to get a loan from in NL?
NL’s half a million residents may not have as many options when it comes to loan providers as some of their fellow Canadians in larger provinces, but there’s still a choice to be made. The majority of residents get financing help from a bank or credit union; this is particularly convenient if you live in St John’s. However, other options are available, and the best choice for you will depend on what kind of loan you want and your personal financial circumstances.
Banks and credit unions are much more accessible in the province’s capital than in rural areas or in Labrador; they tend to have stricter eligibility requirements than alternative lenders, but also offer competitive rates to those with good credit and a steady income. If you need more flexibility, an alternative lender such as a specialty financial provider is probably a better bet. And online lenders are a good choice for those who want convenience, live rurally, or need quick approval.
How quickly can I get a loan in NL?
Processing times for loans vary by lender; traditional lenders generally take the longest, sometimes up to weeks. Alternative lenders usually fare better, especially if they are dedicated loan companies, and especially if they offer fast turnaround as a perk. Depending on the type of loan and who is offering it though, you may have limited access to a physical location in NL. Most available specialty financing companies are centred in St John’s. Online lenders tend to be the fastest and most accessible type of lender, and can process a loan application in just a few days. There are even same day lenders for certain types of online personal loan.
How do I choose the right NL loan for me?
Choosing the right loan starts with understanding exactly what you need. Not every loan is the same, and depending on your financial need, some loans will work for your circumstances, and some won’t. So step one is identifying the type, size and duration of your loan. Step two is researching which lenders in the province offer this, and which lenders’ eligibility rules you meet. This should give you a shortlist of companies who can help you. Step three is then comparing costs: interest rates, fees, and so on. This is probably the most important factor when picking a loan. If you borrow more than you can afford to repay, you are guaranteeing future financial problems.
Can I get a loan in NL with bad credit?
It is possible to get a loan with bad credit, but it may cost a little more. The average credit score in NL is 664, and the standard required minimum from lenders is 600. So the portion of the population that falls below this minimum level is going to run into some trouble when trying to get a loan from a bank or credit union with strict eligibility rules. However, there are bad credit loan providers in the province who specifically work with those who have a lower credit score; the offset is that you will probably need to pay more in interest.
Can I get a business loan in NL?
NL is home to almost 16,000 businesses and a provincial government keen to encourage more local investment, so finding a business loan is not as difficult as you might think. Lenders offer many different types of commercial loan, for many varied needs. Most standard business loans have competitive rates, and require the applying entity to show:
- A business history lasting at least two years, including bank statements and tax returns
- A business plan
- Proof of revenues, profitability, and projected future revenues
- Collateral (for property, equipment, invoice and vehicle loans)
- Credit history for the business and the business’s owners
There are loans available to businesses who do not meet these criteria – for example, bad credit business loans, startup loans, and so on. Just be aware that these specialized commercial loans may not be available from every provider. And bear in mind that an alternative to a private loan is a federal or province-backed loan. These can be especially helpful for small businesses and new enterprises.
How do I get a mortgage in NL?
Getting a mortgage in NL means meeting some standard requirements:
- Be a Canadian resident
- Be at least 19 years old
- Have proof of sustained income (usually for a minimum of 2 years)
- Have proof of continued employment
- Pass a credit check
- Meet the minimum required down payment (5% for properties valued under $500,000)
The average house price in NL is $239,500, so the average minimum required down payment is $11,975. The above sets basic eligibility, but the details of your personal finances will determine how much you can borrow. A general rule of thumb is that a lender will cap your borrowing to come out as no more than 28% of your monthly gross income in repayments.
