How are personal loan interest rates calculated?
They are calculated through a combination of borrower-specific (income, credit score, assets etc.) and macroeconomic (central bank rates, inflation) factors.
Can you pay off a personal loan quicker than the life of the loan?
Typically, personal loans do not come with prepayment penalties. However, it is important to confirm that with the lender prior to prepaying the loan. If the lender allows this, the benefits of prepayment could include lower interest costs over the life of the loan.
What do I need to get a personal loan in Canada?
While different lenders will have different requirements for minimum credit scores, credit history and income levels, the baseline requirement for borrowers includes Canadian residency, being 18+ years of age, and having a Canada-domiciled bank account.
How much can I borrow under a personal loan?
The precise amount depends on whether the borrower is willing to put up asset collateral, as well as the level of income and credit history they possess.
Unsecured or secured loan?
Depending on the purposes of the loan and the profile of the borrower, both have individual merits. While unsecured loans are non-recourse to the borrower i.e. the lender cannot seize personal assets, secured loans offer lower interest rates.