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How much can I borrow with a personal loan in Saskatoon?
People across the country use loans of all sizes, for all manner of reasons, and Saskatonians are no different. 63% of households in Saskatoon have some form of personal debt, with the average consumer holding approximately $32,000 combined across all forms of non-mortgage loans. The individual sizes of these loans can vary, and different types of loans have different limits. In general, personal loans range from $300 to $35,000, although more is available to some borrowers, or on a secured basis.
What can I use a personal loan in Saskatoon for?
Personal loans are so popular because they are so versatile – they can be used for almost anything. This includes ‘routine’ expenses, such as housing costs, groceries, transport and so on, as well as emergency expenses, such as car repair, and discretionary expenses, such as a vacation. This flexibility is welcome to the many Saskatonians struggling with the rising cost of living, which now sits at $1,857 per person per month in the city – an increase particularly difficult for those on low income, as Saskatchewan’s minimum wage ($14 per hour) is the lowest level in the country. Pinched budgets are just one of the many reasons people turn to personal loans.
What credit score do I need to get a personal loan in Saskatoon?
Different lenders have different credit conditions for their loans; some (like banks and credit unions) maintain a strict minimum credit score requirement of 650, while others (like payday lenders) do not perform a credit check at all. It’s therefore very important for borrowers to know their credit score before they start shopping for a personal loan, as your score will impact your options. The average credit score in Saskatoon is 656, which is lower than both the national average and the average in nearby Regina.
If credit is a concern for you, then you might want to consider a secured personal loan. Offering security helps offset the risk of lending to someone with a lower-than-average credit score, and therefore makes it easier to qualify for loans, to qualify for larger amounts, and to access competitive interest rates. Given that 68.2% of Saskatonians are home owners, and the average house price is $380,100, using the family home as security for a loan is a common choice locally.
What income do I need to get a personal loan in Saskatoon?
The average salary in Saskatoon is $54,700; the average household brings in $104,000 per year. While this might sound like enough to qualify for a large personal loan, the truth is a little more complicated. Lenders do not just look at a person’s salary when considering their loan application; they also look at their other debts, to determine whether they have enough disposable income after existing financial obligations have been taken into account to make new loan repayments. This factor (known as the debt utilization ratio) is a more important consideration than income on its own. So there is no single level of income that will guarantee you loan approval.
However, some lenders do have a minimum income threshold that borrowers must meet; for example, CIBC has a minimum income requirement of $17,000 a year. Other lenders have more flexible requirements, and some do not require employment at all – good news for the 4.5% of Saskatonians who are currently unemployed. So if you’re on a pension, receiving benefits or have another form of non-employment income, make sure you check a lender’s terms and conditions before you apply, to ensure you qualify.
What happens if I can’t make my personal loan repayments in Saskatoon?
If you’re struggling with your debt payments, there’s help available. Multiple independent debt counselling services exist in Saskatoon, and debt consolidation loans and other financial tools are available to those in need. With interest rates having risen so much over the past five years, it is common for people to need extra help; 48% of millennials in the province have debt, and Saskatoon itself suffers from the highest mortgage delinquency rates across all of Canada.
The key is to act before you fall into delinquency; as soon as you find yourself struggling to make debt repayments, speak to your lender(s). Alternative payment plans may be available. If you cannot clear certain debts, consider transferring balances to lower interest vehicles to minimize costs. And seek help as soon as you can via debt consolidation or expert advice.
Written by:
Amy Orr
Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.
Reviewed by:
Jenna West
Jenna West is Smarter Loans' in-house financial writer and content director. She has been covering the Canadian FinTech and finance industry since 2017, including financial trends analysis, industry surveys, regulatory updates and changes in Canadian consumer behaviour when it comes to finance.
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