Loans Quebec

Frequently Asked Questions About Loans in Quebec 

Do I qualify for a loan in Quebec?

Qualifying for a loan in Quebec is not as hard as you might think. There are some basic stipulations that all applicants must meet: you must be at least 18 years old, have ID and an active bank account, and be able to show proof of residency in Canada. After this, eligibility for a loan depends on the lender you go to, and the kind of loan you want. Many loan providers have credit score requirements (usually a minimum score of 600), and need to see proof of income. Some will want further financial documents, like bank statements and existing debt notices. Others have more flexible criteria, even offering loans to those with bad credit or no income. Your ability to qualify will largely depend on which provider you go to.

Where’s the best place to get a loan from in Quebec?

Quebec’s 8.5 million residents have a lot of choice when it comes to loan providers. While the majority get their loans from a bank (75%) or caisse populaire (14%), other options are available. The best place for you will depend on what kind of loan you want and your personal financial circumstances. Banks and caisses populaires tend to have stricter eligibility requirements than alternative lenders; they can however 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. Online lenders are a good choice for those who want convenience and quick approval. Your priorities dictate who is best suited to serve your needs.

What kind of loan can I get in Quebec?

As Canada’s second largest province, Quebec has a thriving loan market, and offers every type of loan you might need. This includes all manner of personal and commercial loans, including:

• Mortgages
• Home equity lines of credit
• Auto loans
• Truck/trailer loans
• Boat loans
• Bad credit loans
• Personal loans
• Credit cards

• Payday loans
• Installment loans
• Same day loans
• Title loans
• Debt consolidation loans
• Commercial loans
• Invoice loans
• Equipment loans

Can I get a business loan in Quebec?

Quebec has nearly 250,000 businesses, large and small, and all need access to affordable financing. However, qualifying for a business loan is a little more involved than qualifying for a personal loan. A lender will want to ensure the financial security of both the business and the business owners. Each lender is different, but as a general rule you will need the following to get a business loan in Quebec:

1. A business history lasting at least two years, including bank statements and tax returns
2. A business plan
3. Proof of revenues, profitability, and projected future revenues
4. Collateral (for property, equipment, invoice and vehicle loans)
5. Credit history for the business and the business’s owners

If your business does not meet one or multiple of these requirements, a loan may still be possible, but an alternative or specialty lender is probably better placed to help you. Alternatively, certain businesses may qualify for financial aid from the provincial or federal government.

Can I get a mortgage in Quebec?

A mortgage is probably the largest single loan you will ever get, and qualifying for one takes some paperwork. Most mortgage lenders will want to see: your ID, proof of address, details on your down payment and its origin, proof of income, documents regarding your existing debts, and your credit score.

The biggest factors in determining your eligibility for a mortgage and the size and terms of that mortgage are your credit score, your income, and the size of your down payment. The average property price in Quebec is $340,000 (although this is significantly higher in Montreal, at $435,000). The minimum required down payment (set by the government) is 5%, equating to an average of $17,000. If you meet this threshold and the other requirements stated above, you should have no problem getting a mortgage in Quebec.

How much can I borrow in Quebec with a personal loan?

Personal loans help consumers with everything from debt consolidation to paying for emergencies, and are widely used throughout the province, where the average non-mortgage debt is $19,833 per person. The size of personal loans can range from $500 to $50,000, though higher amounts are only available to the most secure borrowers (i.e. those with high income or excellent credit). The exact amount you can borrow will depend on your personal credit score, your income, and your existing debt payments.

Can I get a loan in Quebec if I have bad credit?

If you have bad credit and live in Quebec, it is still possible to get a loan. The average credit score in the province is 650 (663 in Montreal and 676 in Quebec City), but anyone with a score of less than 600 is going to have some trouble qualifying for a loan from a traditional lender. Luckily, there are bad credit loan providers who specifically work with those who have a lower credit score; you may need to pay more in interest, or be able to show more comprehensive financial documentation, but bad credit should not stand in the way of your ability to get a loan.

Can I get a loan in Quebec if I’m unemployed?

Getting a loan if you’re unemployed can be quite difficult; usually lenders need to see proof of income so that they’re sure you’ll be able to pay back the loan. However, some options do exist for the 6% of Quebeckers without a steady job. Some alternative lenders will accept applicants without proof of income, but the amount you can borrow will generally be quite small, and usually on a short term basis; this however can still help you access emergency funds. You may have to pay higher interest, and you’ll probably need to show details regarding savings, assets and other debts, before they will consider your application.