Installment Loans Newfoundland, Canada

Installment loans can help with a multitude of financial needs, and the’re easier to get than ever. Forget onerous paperwork and the headache of shopping around; just take a look at our handy breakdown of the best installment loans available in Newfoundland, shown in the table below. Pick a lender to apply with them directly, or pre-apply for an installment loan with us and we’ll match you with an option suitable for your needs.

How much can I borrow with an installment loan in Newfoundland?

Amounts from as little as a few hundred dollars, to hundreds of thousands of dollars, are in theory available to residents of Newfoundland via installment loans. This broad range is a result of several factors: each lender’s lending limits; each loan type’s specific rules; and each borrower’s financial situation. To know exactly how much you can borrow with any given loan from any given lender, you’ll need to pre-apply with a lender, or ask for a loan quote.

But until you take the step of speaking to a lender directly, here are some guidelines to give you context: the average Newfoundlander owes $45,456 in non-mortgage debt – usually spread over a number of loan types, with non-mortgage installment loans making up just a small fraction of this number. The average debt service ratio (the measure of how much of a person’s disposable income goes towards paying off their debts) is 4.32%. These numbers do not include mortgages, which are a type of installment loan, but usually counted as distinct from other loans.

What different types of installment loans are available in Newfoundland?

Atlantic Canadians are the most likely of any Canadians to put off important life goals for financial reasons, but fortunately there are installment loans available to help with almost any need. Broadly, all installment loans fall into two types: secured, and unsecured.

Secured loans are backed by an asset owned by the borrower, so that in the event the borrower defaults on their loan, the lender can seize the asset in lieu of payment. These loans are usually less expensive than unsecured loans, and can be for larger borrowing amounts. The most common types of secured installment loans are mortgages, auto loans, home equity loans, and traditional secured installment loans. The first two are for specific purchases (property and vehicles), while the second two provide access to funds that can be used for anything.

Unsecured installment loans are not underpinned by any collateral; they usually have higher interest rates than secured loans, and tend to be smaller. They include most online loans, unsecured personal loans, short term loans, and bad credit loans. These all provide lump sums of cash that can be used for any purpose.

Is there an installment loan in Newfoundland for living expenses?

Less than half of all Atlantic Canadians think they’ll be able to cover all of their living expenses over the next year, without borrowing money to do so. This is despite the cost of living in Newfoundland and Labrador being 1.08 times less than the Canadian average (it costs just $1,765 per person per month to live locally; rental rates are some of the lowest in Canada, but food costs are some of the highest).

So with the cost of living only projected to rise, it’s important to know that installment loans can be used to help cover living expenses. There is no single type of installment loan dedicated to this purpose, but as mentioned above, many of the various types of installment loan available in Newfoundland provide access to a lump sum that can be used in any way the borrower sees fit. This may be for a one-off expense, or an emergency, but it can also be for items such as rent, groceries, childcare, and so on. Just make sure that any new debt you take on is affordable for you, over the life of the loan.

What do I need to get an installment loan in Newfoundland?

The basics you’ll need to get an installment loan are: I.D., proof of address, and an active bank account. Beyond this, you’ll need to check with a lender to see what factors they consider during the application process, and what paperwork they require. Commonly requested items include:

• Proof of income and/or proof of employment
• A credit check
• Recent bank statements
• Tax records
• Proof of collateral

How do I make installment loan repayments?

Installment loans are named after their repayment method, which occurs in regular installments over a set period of time. The method, frequency and amount of these repayments will be set out in the loan agreement you sign when you take on a new loan; you must ensure you’ve read and understood these terms, and that you stick to them. The delinquency rate in St John’s is 1.44%, and increasing, but defaulting on a loan has serious financial and legal consequences.