How do I choose the right loan provider in Saskatchewan?
Every lender has their own advantages and disadvantages, so choosing the right one for you is a matter of considering your priorities. Do you need a loan immediately, or can you wait a few weeks for the paperwork to be processed? What matters more: a lower interest rate, or reputability? How much can you pay in fees?
Traditional lenders like banks and credit unions have slower processing times, but they also have a steady range of standard loans with competitive interest rates for those with good income and credit. However, they’re not as helpful for those who need flexibility. Alternative lenders can offer more competitive rates on niche loan products, but they may not be as accessible if you live outside of Saskatoon or Regina. Online lenders have fast processing times and convenience, but it’s more important that you check out their reputability, as there are some predatory companies in this space.
What credit score do I need to get a loan in Saskatchewan?
The average credit score across Saskatechewan is 650 (a little lower in Regina, at 642), and a standard requirement for many loan companies is a minimum credit score of 600. So if your score falls below this 600 threshold, you may run into some trouble accessing a loan through your bank or credit union. However, there are still options, as many alternative lenders have more flexible credit score requirements. There are even dedicated bad credit providers who cater specifically to those with historically poor credit. Just bear in mind that if this is you, you will have to pay more in interest.
Can I get a business loan in Saskatchewan?
There are over 150,000 businesses in Saskatchewan, and as any one of them will tell you, access to affordable commercial financing is crucial. Whether you need funds for a new enterprise, equipment purchase, working capital, vehicles, inventory, or something else entirely, getting a business loan starts with your paperwork.
Every lender is a bit different, but as a general rule you will need 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
If you don’t meet these criteria (for example, if you are starting a new venture) there are still loan options for you – you just might need to find a specialist lender who is experienced helping businesses like yours. There are also possibilities for financing via the federal and provincial government.
Can I get a mortgage in Saskatchewan?
Qualifying for a mortgage is an involved process – after all, this is probably the single biggest loan you will ever take out! Most mortgage lenders will want to see at least the following:
- Proof of Canadian residency
- ID showing age of majority (18 in Saskatchewan)
- Proof of sustained income (usually for a minimum of 2 years)
- Proof of continued employment
- Your credit history
- Size of your down payment and its origin
The Canadian government requires a minimum down payment of 5% of the property’s purchase price. The average house price in the province is $281,100 (about $20k higher in Saskatoon and $35k higher in Regina), so this equates to an average down payment of at least $14,055. Assuming you meet all of these conditions, the amount you can borrow will depend on your credit score and income level.