Doing battle with the banks for a loan can be daunting for any borrower. The application process is often lengthy. Getting approved usually means having to deal with pages of paperwork. And If you’re new to Canada, struggling to win the loan approval battle can sometimes prove close to impossible.
Secured vs Unsecured Loans
Anyone who makes the life-changing decision to move to a new country will encounter certain challenges. Cultural differences, language barriers, and loneliness are common. But one of the biggest hurdles for many new residents is financial management.
If you’re new to Canada – and you’re hoping to get a personal loan to renovate your home, pay off your debts, or start a new business – here’s what you can expect from the banks.
An unsecured loan lets you borrow money from the bank without having to own any property. If you’re a newer resident who’s yet to purchase a home, you might consider applying for this type of loan. But here are two things you should know before you do:
- unsecured loans typically have higher interest rates than some other loans, and
- they usually require that you have a strong credit score
Overall, unsecured loans can be both expensive and difficult to qualify for – especially if you’ve yet to establish a work or credit history in Canada.
A secured loan is based on your owning certain assets or property. If you own your own home in Canada, this can be a great funding option.
One thing you should understand about secured loans, however, is that even when you own property, working with the banks means having to meet certain personal financial standards before you can get approved.
As a minimum, these standards include:
- Having a minimum level of provable income.
- Having a healthy credit score.
- Having a strong history of debt management.
If you’re using your home to apply for a secured second mortgage, home equity loan, or home equity line of credit (HELOC) with the banks, you’ll also need to pass Canada’s mortgage stress test.
Secure Your Future with a Home Equity Loan
It’s not unusual for someone who’s recently moved to Canada and purchased a home here to need a little help moving forward. The great new is that if you’re worried about your financial eligibility – or you’ve already lost your loan approval battle with the banks – you still have options!
Unlike federally regulated financial institutions, Alpine Credits is well-positioned to help you overcome the borrowing barriers attached to loans for new Canadians with property in BC, Alberta, Ontario, or Québec.
When you apply for a home equity loan with Alpine Credits, you can expect:
- a simple 3-step online application,
- 24-hour application approval in many cases, and
- a loan qualification process that’s based primarily on your home’s equity value – regardless of how long it’s been since you moved to Canada
Getting the funding you or your family needs to build a better life shouldn’t be an uphill climb. If you own your own home, and your income or credit situation is less than perfect, Alpine Credits’ lending specialists can help you win the loan approval battle.
At Alpine Credits, Homeowners get Approved.
Apply today or call (1-800-587-2161) to find out how much you can qualify for.