Tips for Searching Through Canadian Loan Lenders

Doing a search for numerous Canadian loan lenders is recommended rather than going with just the first one you come across. There is a lot that goes into a loan and a company that offers them. By knowing more about the company, you know what type of loan you’re going to be borrowing.

The right loan lender means a lot, so choose the right one that works with you. Reading more on each of the companies and keeping these tips in mind can help you make the right choice on which financial institution you should go with.

We’ve compiled the information you need to know to choose the best Canadian loan lender for your situation. Read on to find out more and make the most informed decision on who to go with for your loan.

What is the Lender’s Credibility?

The lender should have more information about themselves online or in various areas around where you are looking. Find out what others have thought about them, as well as what to expect when borrowing from them.

Online lenders are sometimes hard to work with because you do not know if they exist. Plenty of fake lenders exist over the internet. The right online lender in Canada is going to be honest with you up front and work with you to give you every fact you need.

A little research is all that is needed to find out how credible a lender is.

How is Their Loan Process?

The loan process should be easy. It should be a smooth process from start to finish for you. Knowing what they expect from you, paperwork-wise and what credit score you will need is good to know ahead of time. You can perfect your debt-to-income ratio and a higher credit score so that you can get a better rate when applying.

Having the information on how quickly the process takes from start to finish, as well as the process to expect can give you more information on whether to use them or not.

How is the Lender’s Customer Service Team?

The customer service team is not something that you should just trust from the reviews you read online. It is something you should call and experience first-hand for yourself. You want to find out how responsive they are, how easy to get ahold of they are, and whether they are friendly and knowledgeable.

By finding out how you can contact them you will also know whether you want to work with them or not. You want to keep an eye out for those lenders who really want to work with you and are not just after the money you’re trying to borrow from them.

The quality of customer service and ease of contacting them are both big parts of why you should choose them or not.

Know if You Have to Put Down Collateral on the Loan

Some lenders will want to secure the loan with collateral. If this is the case, then you will have to have a house or car that has the right value on it that is needed. If you do not have a vehicle that is worth something, or a home to use as collateral, then they generally do not lend the money out.

Other lenders may not ask for collateral for the loan you want to take out, but they might require a higher credit score in the case of obtaining a loan. The customer service department should be able to answer whether these are loans that they offer or not.

Research the Market Interest Rates and Lenders

You want to find out if you have the right interest rate for your credit score and history. The market interest rates should give you an idea of what you should be paying compared to what you find with the lenders.

It is important to read more into the market and the interest rates before choosing any loans or lenders. This is one of the most important things to know about the loan and lender. A simple search of the interest rates is all you need to do to find out more about the rates.

How Flexible is the Loan Company on Payment Terms?

The loan company should allow you to pay off the loan before the scheduled time. If this is something you want to do then you need to find out what to expect from the payment terms. You want to be aware of the other payment penalties and extras that they are offering or adding to the payments so that you are not being charged more than you’d like on the extra money that you have to pay over what you’ve already borrowed. It is important that you find out as much as possible on the payment terms.

You want to also think about exit fees if there are going to be any. This is especially true for those who have a long-term loan but might actually pay it off before the end or even when you get to the end, there might be additional fees.

Don’t hesitate to ask them how flexible their repayment schedule is and see if there are any hidden fees.

Frequently Asked Questions About Searching Through Canadian Loan Lenders

Will my credit score continue to go down with each lender looking at it?

It will only go down once during that time when the same type of lender is looking at the score and history. This is why it is recommended to apply for the same loan from numerous lenders all during the same time.

Do I have to use the lender that I bank with?

You do not have to use the same financial institution that you bank with to get a loan from. You’re welcome to get a loan from any lender that you wish.

Will I have to show proof of anything?

You will have to show proof of income, verification of where you live, your credit information and if you need collateral then you will have to provide information on this.

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Amanda Leach

Fifteen years can be a long time to work in one industry, but not when you are doing something that you love. Amanda has enjoyed the freedom of working as a freelance writer for the majority of her career. She has successfully combined her passion and skill for writing while still enjoying a life filled with travel, learning and exciting new experiences. While she loves exploring all different types of writing, her PhD in Consumer Psychology has made her a sought after writer for marketing, business and technology fields. Amanda is a regular contributor to Smarter Loans.