Where’s the best place to get a loan from in Nova Scotia?
Nova Scotia has a couple of different categories of lenders to choose from, and the best one for you will depend on your priorities, the kind of loan you need, and what you qualify for.
Banks and credit unions have a steady range of loans to offer their customers, and competitive rates. They are available throughout the province, though you may need to go to an urban centre if you want to go into a branch. Generally, their processing times are long, and their eligibility criteria are strict.
Specialty financial companies may have more varied or niche loans, and so may have more competitive rates if you need something really specific, but again finding a physical location (if this is important to you) will be tough unless you’re near Halifax. And online lenders tend to be the most flexible and convenient, with the quickest processing times, but it’s important to do your due diligence and make sure you are using a reputable company.
What’s the average interest rate on a personal loan in Nova Scotia?
Nova Scotia’s residents suffer slightly from living in one of the smaller provinces, where there is less competition amongst lenders due to the smaller market size. This equates to slightly higher interest rates than elsewhere in the country – usually 1-2% higher than the larger provinces. This doesn’t mean there aren’t deals to be had though, especially when using an online lender that is equally available across the country. Interest rates can go as low as 5% for the most qualified applicants, though the average is more like 9.5%.
Can I get a loan if I’m new to Nova Scotia?
New immigrants to Nova Scotia can get loans, but it may require a little more paperwork. If you’ve moved from another province, then you should have no trouble at all – your Canadian credit history will move with you. But if you’ve moved from abroad, you will have no credit history in the country and will need to start a new one from scratch. This means you need to find a lender who accepts no credit history applicants; this isn’t too tough as long as you have a steady income, and are prepared to accept higher interest rates or to provide collateral for the loan.
How do I get a business loan in Nova Scotia?
Qualifying for a business loan takes more paperwork than qualifying for a personal loan; generally, lenders will want to see the following:
- 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
Clearly, not all of Nova Scotia’s 15,000+ businesses meet these criteria, and there are options in these cases. If you are starting a new business, there are grants and financing options through the Government of Canada. Small businesses (which constitute 98% of Nova Scotia businesses) can get assistance from either the federal government, or the Nova Scotia provincial government. Some alternative lenders may also offer start up loans, small business loans, or have more flexible prerequisites.
How much can I borrow with a mortgage in Nova Scotia?
The average property price in Nova Scotia is $266,000 (and almost $100,000 higher in Halifax). The Canadian government stipulates that buyers of homes worth less than $500,000 must have a minimum 5% deposit, which equates to an average down payment of $13,000. If you meet this deposit threshold and need to borrow the rest of the purchase price, the mortgage company will want to see a few things before approving you: your income, tax returns, credit score, existing debt levels, and possibly other financial information. It is these factors (especially credit score and income) that dictate how much you will ultimately be able to borrow, but as a general rule of thumb, a lender will cap your borrowing to come out as no more than 28% of your monthly gross income in repayments.
