As an Edmonton resident, you can apply for all sorts of loans for different purposes, like personal loans, car loans, and mortgages. These loans can fall under two categories:
Common with larger loans, like car loans and mortgages, a secured loan is when you offer your lender collateral to reduce the risk for them. Collateral refers to an asset they can sell, in case you default on your loan. For example, most car loans are secured against the vehicle you’re purchasing, which means the lender can repossess it if you don’t pay them back in full.
Despite the danger of losing your asset following default, collateral can help you qualify for a larger loan with a better rate and term since you’re offering the lender security.
When you apply for a personal loan, they’re generally unsecured, unless you offer an asset of value as collateral. These loans typically come with higher rates instead, due to the lack of security.
On the other hand, you won’t endanger any assets. If you miss payments, you’ll be subject to regular penalties like late fees, added interest and, eventually, debt collection and legal fines.
Although the approval process and requirements can vary by lender and the type of loan you need, here are some of the basic steps you should take when applying for a loan in Edmonton:
Every lender has different costs and conditions, so take some time to research the interest rates, payment plans and legitimacy of a variety of companies. Banks and credit unions tend to offer more security and lower rates, while alternative lenders typically have easier requirements.
Once you’ve chosen a trustworthy and affordable lender, head to their application page and follow the instructions. Most of the time, the process is relatively simple and quick. During it, you’ll have to provide some personal, financial and banking information, such as your:
To apply for a loan anywhere in Canada (including Edmonton), you must:
Once you send in your loan application, the response time depends on your lender. Some companies can take one or two business days to get back to you (especially if you apply on a weekend or holiday), while others can do it in the same hour. After you receive confirmation, make sure to read the loan contract carefully before you officially accept it.
If you’re satisfied with the loan, simply sign the contract and wait for your funds. Arrival times vary based on the lender and the size of your loan. Larger loans can take several days to go through, while some lenders can process your loan almost immediately. Depending on where you apply, you may have a number of options to collect your funds, including:
To prove that you have a valid identity, address, income, and bank account when you apply for a loan in Edmonton, you may need to provide copies of these documents:
Personal Identification – Lenders will ask for at least one piece of government photo ID (passport, driver’s license, health insurance card, etc.). They may also request other documents that contain your identity and address, such as a:
Income/Employment – Next, lenders will look at your recent pay stubs, bank statements and tax returns. If you don’t have a regular job, then you’ll need an adequate non-traditional income, like from self-employment or social assistance. Keep in mind that some lenders will deny applicants who aren’t fully employed.
Additional Documents For A Car Loan – Car loans are risky for most lenders. Plus, a car loan is usually secured against the vehicle you’re trying to finance. To apply and qualify, you may have to provide the documents above, as well as:
Additional Documents For A Mortgage – If you’re applying for a mortgage in Edmonton, you must be extra prepared with all the right personal and financial documents. Since mortgages are the riskiest and most expensive loans of all, you may have to provide more specific documents and forms of protection, like:
In Canada, most lenders will want you to have an active bank account before they can offer you a loan. This is simply an easier way to verify your income, deposit your loan and collect your payments down the line. However, some lenders, particularly payday lenders in Edmonton, don’t require bank verification, as long as you have a way to receive and pay off your loan.
If you need a fast, short-term loan, many lenders offer loans that you can collect in less than 24 hours, with “no credit refusal”, meaning no credit check. This can help you avoid getting rejected due to a bad credit score or weak credit history. Just watch out, since no credit refusal loans are a common tactic used by scammers and predatory lenders.
While an instant approval loan is not possible, you can get a loan the same day you apply, given that you apply early in the day. With these loans, you’ll have fast access to liquid cash and the ability to cover any emergency costs that come your way.
Before you apply, remember that loans with fast approval loans can be smaller and have higher rates or shorter terms.
| APR | Monthly Payment | Total Interest | Total Cost |
| 10% | $87.92 | $54.99 | $1,054.99 |
| 20% | $92.63 | $111.61 | $1,111.61 |
| 30% | $97.49 | $169.85 | $1,169.85 |
| 40% | $102.47 | $229.66 | $1,229.66 |
There are several things that you can and should do before applying for a loan in Edmonton to increase your chances of approval:
Not everyone realizes that their credit scores can be affected in various ways during the loan payment process. For instance:
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