Looking for authentic information on loans in Canada? You have landed at the right place. This detailed guide is all about the loans that you can get in Canada. Continue reading to know more about them.
1. Short Term Loans
If you want cash right on urgent basis then the short-term loan is your option. It is a sort of payday loan which is made so that one can pay back after a short amount of time and can fulfill their needs at the time of emergency. Are you willing to go on a vacation?
Do you want to buy your favorite car Or your engagement ring? Then short-term loan is the best type of loan for you. These loans only have terms for 1 to 2 years. The amount of this loan is fixed between 500$ to 10,000$.
People often end up asking about the long-term payment method but we would recommend you to choose the short-term payment method as it will be easier for you to pay in a short amount of time and it will also be good for your credit rating.
In the end, we would recommend you to make a budget before taking a loan so that it does not affect your lifestyle after taking the loan.
2. Mortgage Loans
A type of loan in which a certain property or real estate is kept as a collateral. These are the type of loans that one must choose when they are willing to buy a new house or a new business. The payment length of this loan is from 10 to 25 years.
However, they are only offered by certain banks of the country. Before accepting your application for a loan, they will ask you some of the important questions such as your monthly expenses, side expenses etc. and verify certain important documents. Banks offer these loans since they earn steady yet huge income due to these loans.
3. Secured Loans
A type of loan in which the borrower decides to give away assets such as car, house or some other form of property as a collateral. This asset then becomes a secured debt which is owed to the creditor who has given the loan. In the case where the borrower is not able to pay to the creditor, he can then recover the loss that he has faced from the asset that the borrower gave as a collateral.
The procedure to get a secured is quite long as there is a whole evaluation procedure for the collateral that a borrower gives. They are preferred by most of the people as the interest rate in this loan is lower as compared to the other ones. Make sure that you choose a trustworthy for this loan as you are giving away something that is important.