Loans Yukon

Frequently Asked Questions About Loans in Yukon

Do I qualify for a loan in Yukon?

Qualifying for a loan if you live in Yukon starts with a few basics:

1. You must be at least 19 years old
2. You must be a resident of the province
3. You must have an active bank account

After meeting these criteria, eligibility for a loan will vary by lender, and loan type. Larger loans are generally harder to qualify for and require more paperwork than smaller loans. Most traditional lenders, like banks and credit unions, will want to see proof of income and perform a credit check, though these are not necessarily required by alternative lenders, who generally have more flexible requirements. This is fortunate, as the average credit score in Yukon is just 619 – lower than the national average of 650 – and very close to the lending threshold of 600 set by traditional lenders.

Where can I get a loan from in Yukon?

• Banks & credit unions
• Online lenders
• Payday lenders
• Other financial service companies, like:
  • Mortgage companies
  • Auto loan providers
  • Credit card companies
  • No credit check lenders
  • Bad credit loan providers
  • Vehicle specialists
•  Federal and provincial programs

The best lender for you depends on the type of loan you need and your financial circumstances. If you live outside of Whitehorse, location might also be a factor if you need to visit a physical location to complete your loan.

What kind of loan can I get in Yukon?

The average consumer debt in Yukon is $39,156 – higher than the national average, which is no surprise given the high cost of living in this territory. Fortunately, residents have easy access to many different types of loan, to help with a variety of financial needs, including:
Yukon’s 40,000 residents may not enjoy as thriving a loan market as in some of the larger provinces, but there are still options when it comes to loan providers. The main contenders include:

• Mortgages
• Auto loans
• Truck/trailer loans
• Bad credit loans
• Personal loans

• Commercial loans
• Equipment loans
• Home equity lines of credit
• Payday loans
• Debt consolidation loans

What you intend to use your loan for may dictate the best type of loan for you. For example, a mortgage has a very clear purpose, but a personal loan can be used for many varied reasons. Always be sure to know what you need a loan for, so you can shop around for the best product and rates.

How do I get a business loan in Yukon?

Starting and running a business in Yukon is hard – almost as hard as the climate. Fortunately though, local businesses have plenty of options when it comes to financing. Many immediately think of the traditional route to a business loan, which is a private commercial loan from a traditional lender, like a bank. Qualifying for this type of loan means you need to be able to show:

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

Not every business will be able to meet these criteria, and there are alternatives. Online lenders and specialty financing companies offer startup loans, bad credit business loans, and other niche loans to help companies in all manner of situations. And the federal and provincial government have a wealth of financing programs to help new entrepreneurs, Indigenous businesses, and small businesses find affordable financing.

Can I get a Yukon loan if I’m unemployed?

Unemployment in the Yukon is the lowest in Canada, at just 3.2%. However, this doesn’t mean that there aren’t unemployed residents who need a loan, and if this is you: you have some options. You will probably not qualify for a loan from a traditional lender (like a bank or credit union), as these usually require proof of income. However, some alternative lenders will work with no income borrowers; just bear in mind that you may have to provide collateral, show more detailed financial documentation, or pay more in interest.

Do I need to get a mortgage in Yukon?

Unusually, the provincial government in Yukon has a financing program geared specifically towards those building or buying a home in rural Yukon. This program is more accessible and cheaper than a traditional mortgage, and is a great option if you are looking at a move to rural Yukon. However it does not apply to Whitehorse, so if you are seeking a home in the capital, you will need to pursue more traditional forms of home financing.

What’s the deal with payday loans in Yukon?

Payday loans are not regulated in Yukon in the same way as in the provinces. Instead of territory-specific rules, payday lenders only have to comply with federal laws. This means that payday lenders can charge much higher interest rates, punitive fees, and have higher lending amounts than elsewhere in the country. However, because of this many local banks and credit unions have adapted their rates and terms to eliminate the competition from predatory payday lenders. They even offer credit builder programs to provide small, short term loans to help residents build their credit score, and so become eligible for other, larger financial products. So if you’re in need of a small, short term loan, don’t assume that your bank won’t be able to help!

How do I choose the right loan for me?

Choosing a loan may seem overwhelming, especially with the range in private and public options available in Yukon. But there are some simple steps to find the best loan for you:

• Step One: Understand what loan you need – what it’s for, how much you need, for how long, and so on.
• Step Two: Find loan providers that have what you need. This includes all possibilities, regardless of type.
• Step Three: Narrow down this list of providers by examining their eligibility criteria, and weeding out those who won’t approve you. This means you should know your credit score, your income, and how much other debt you have.

• Step Four: Check the reputability of the companies you are considering to eliminate any untrustworthy providers.
• Step Five: Compare costs to find the best deal. This means considering interest rates, loan term, and fees.