How To Apply For A Personal Loan
Step 1: Get Pre-Approved
Before applying for a personal loan, get pre-approved with multiple lenders first. This will allow you to compare various loan offers based on your financial situation. Moreover, the pre-qualification process is often instant and only requires a “soft” credit check, so it won’t negatively impact your credit scores.Step 2: Choose A Lender
Compare your loan offers and choose one that comes with affordable rates and favourable terms. Be sure to also compare funding times if you need the cash urgently.Step 3: Gather All Required Documents And Apply
You’ll need to provide your lender with specific documents to verify your creditworthiness and identity. You can upload these documents and submit them electronically with your application. This may include a government-issued photo ID, bank statements, pay stubs and other related documents. Be sure to read over the application to make sure all the information is accurate.Step 4: Wait For Approval
Once you’ve submitted the application you should receive a response shortly after. If approved, the funds will be deposited into your account within 24 to 48 hours (via direct deposit or e-Transfer), depending on the lender.Learn more: How To Apply For A Loan
Documents Required For A Personal Loan In Ottawa
- Name, date of birth, contact information
- 1 or 2 government-issued IDs (1 photo)
- Social Insurance Number (SIN)
- Proof of employment (income, employers name, job title)
- Loan purpose
- 3 months' worth of bank statements
- Bank account details (for direct deposit and withdrawal of payments)
Ontario Personal Loan Regulations
Personal loans are regulated on a provincial and federal level. Here are some regulations you should be aware of:
| Max Interest Rate | Currently, there are no provincial interest rates or fee limits on high-cost credit lenders (other than payday lenders) in Ontario. However, lenders must follow the federal Criminal Code interest rate limit of 35% (APR). |
| Fee Caps | While there are no provincial caps on fee charges, there are federal rules. The total fees, cost and interest of a high-cost personal loan cannot be more than the criminal interest rate of 35% APR. |
| Licensing Requirements | Alternative lenders (other than payday lenders) are not required to be licensed in Ontario. |
| Debt Collection Rules | While there are consumer protection rules on how collection agencies can contact borrowers, none such exist for high-cost credit lenders (other than payday lenders). |
How To Increase Your Chances Of Qualifying For A Personal Loan In Ottawa
To boost your chances of qualifying for a personal loan in Ottawa, try any or all of the following:
Improve Your Credit Score
Your credit score plays a crucial role in your ability to get an installment loan in Ottawa. To improve your score, be sure to pay all bills on time, keep your credit card expenditures low, and check over your credit report for errors (and have them fixed if you find any).
Learn more: How To Improve Your Credit Scores
Reduce Your Debt-to-Income (DTI) Ratio
Your DTI ratio measures your debt relative to your income, which lenders use to assess your loan application. A lower DTI is best, as it shows that you have more income available to cover additional loan payments. So, do your best to pay down your debt to reduce your DTI ratio before applying.
Provide Collateral
Personal loans can be secured or unsecured. By securing your loan with a valuable asset, you reduce the lender’s risk and can make it easier to get approved for a loan.
Can You Get A Personal Loan On Employment Insurance (EI)?
Getting a personal loan in Ottawa while on Employment Insurance is possible, but it can be challenging, especially if you plan to apply with a traditional lender like a bank. These lenders typically require sufficient income from a source of employment before approving you for a loan.
If you’re currently unemployed and are collecting EI, you may find more luck applying with an alternative lender. These lenders accept non-employment sources of income, including EI, pension, disability benefits, and other government benefits. They may place more emphasis on other factors, such as your debt, down payment, and collateral.
Keep in mind that applying for a loan while on EI may come with higher interest rates, making the loan more expensive.
Learn More: Loans On Employment Insurance
Places To Help You Get A Job In Ottawa
Employment agencies in Ottawa can connect you with suitable positions with reputable employers in the city by matching your skills and experience to local business needs. Many also provide assistance with interviews and resumes, and have job boards that list current job opportunities.
Here are a few local Ottawa staffing agencies to check out:
| Agency | Services | Location |
| LRO Staffing | – Job alerts – Online job board – Resume submission | 601 rue Bank, Bureau 200, Ottawa |
| Hamilton Recruiting | – Resume submission – Online job listings – Negotiation with employers | A3 – 341 Richmond Road, Ottawa |
| Express Employment Professionals | – Career development – Online job board – Expert tips on finding work | 2733 Lancaster Road, Suite 110, Ottawa |
Government Employment Assistance Offices In Ottawa
There are a few government-backed agencies in Ottawa that are available to help you find work in and around the city:
- Employment Ontario. This agency provides free assistance with resume writing, interview preparation, and finding work in private and public sectors in Ottawa. The office is located at 370 Catherine Street, 1st floor.
- Better Jobs Ontario. This office provides training and financial assistance to qualifying applicants, helping them get back into the workforce. The Ottawa office is located at 1355 Bank Street, Suite 703.
- Employment and Financial Assistance Centre. This agency offers financial aid, social services, and employment resources to help residents become financially stable and independent. The office is located at 2020 Walkley Rd in Ottawa.
Additional Government Benefits Available In Ontario
Other Financial Assistance Programs In Ottawa
If you can’t qualify for a personal loan in Ottawa or simply don’t want to take on more debt, other resources may be available to help you cover specific costs. Whether you need help paying for groceries, rent, utilities, or other expenses, there are several resources available in Ottawa to help.
One way to find these resources is to use www.211.ca, an online platform that lists multiple support programs in various sectors. Here are a few to check out to help you get started on your search:
Food Banks. If grocery bills are too much for you to handle, you may be able to top up your food stores by visiting a local food bank. Keep in mind that you may need to show ID, as many food banks may require you to be local to the area. Here are a few food banks in Ottawa:
- Ottawa Food Bank: 2001 Bantree St, Ottawa
- Lifecentre Food Bank: Lifecentre, 2675 Innes Rd, Unit 4, Ottawa
- Partage Vanier Food Bank: 161 Marier Ave, Ottawa
Utilities Assistance. The Low Income Energy Assistance Program (LEAP), provided by the Ontario Energy Board, can help you pay for your utilities. This program provides up to $1,000 in emergency financial funds to cover the cost of gas or electricity bills.
Health Expense Assistance. Essential Health and Social Supports in Ottawa helps low-income residents cover the cost of health and medical items or services that are not available under other programs. Items and services covered may include urgent dental care, glasses and eye exams, diabetic supplies, surgical supplies, and bathroom aids.
Rent Assistance. The Canada-Ontario Housing Benefit provides low-income residents with a monthly benefit payment to help pay their rent.
Child Care Assistance. Community and Social Services provides a Child Care Fee Subsidy Program, which helps low-income families cover the cost of licensed child care.
Bottom Line
As we mentioned, finding the right lender to work with in Ottawa is one of the most important steps in getting approved for a personal loan. If you’re unsure where to start or want to get matched with a lender, Loans Canada can help.
