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How Much Can You Borrow In Newfoundland & Labrador?
Personal loans come in different amounts. Some traditional lenders in Newfoundland & Labrador, such as a bank allow you to borrow a minimum of $3,000. Many subprime lenders (privately owned, alternative, etc.), allow a minimum of $1,000.
Generally speaking, most lenders in Newfoundland & Labrador will offer personal loans up to $50,000.
What Do You Need To Get A Personal Loan In Newfoundland & Labrador?
While every lender’s approach in Newfoundland & Labrador is going to vary slightly, their judgement is mainly based on a client’s financial capability. In other words, the likelihood that you’ll pay them back as scheduled. So, when you apply, lenders will generally assess the following:
- Income Level – Lenders will want to know if you can afford the payments and may ask for three months of bank statements.
- Debt Level – What other types of debt do you have? What if your debt-to-income ratio?
- Credit Scores – Most lenders, but not all, will ask to perform a credit check to assess the likelihood of you making your payments on time.
- Job Stability – How long have you been working at your current job?
- Security – Evaluating your co-signer and assets, if any.
What Documents Do You Need To Apply?
Generally, you’ll need to provide a piece of identification along with proof of income and employment. However, many lenders use Instant bank verification (IBV) to verify your income and identity.
By simply logging into your online bank account through a secure portal, IBV allows your lender to access a copy of your bank account statement to verify your identity and income.
| Is IBV Safe? You don’t have to worry about the security of your personal information — this data is encrypted, so your lender won’t be able to access your account. As such, instant bank verification is safe and convenient, both for you and your lender. |
How To Increase Your Chances Of Qualifying For A Personal Loan In Newfoundland And Labrador
To boost your chances of getting approved for a personal loan in Newfoundland and Labrador, you’ll want to go in with a strong financial and credit profile. If your finances and credit score are lagging, there are some things you may want to do to increase your odds of loan approval before applying:
- Improve your credit. Take some time to increase your credit score, like making timely payments and keeping your credit card payments low. You can check your credit score for free by using Loans Canada’s CompareHub tool.
- Get a cosigner. A cosigner is someone with a good credit score and a strong financial profile. If you default on your loan payments, your cosigner will take over. Adding a cosigner to your loan application can reduce the lender’s risk and therefore improve your odds of loan approval.
- Secure the loan with an asset. Adding collateral to back your loan will lower your lender’s risk. If you fail to keep up with your loan payments, your lender can repossess your asset, sell it, and use the proceeds to cover the loan amount that you were unable to repay.
High-Cost Credit Personal Loan Regulations In Newfoundland And Labrador
Newfoundland and Labrador is one of the few provinces that has implemented regulations to govern high-cost credit loans. This legislation is designed to protect consumers from being taken advantage of by predatory lending practices. More specifically, the rules prevent high-cost credit lenders from charging excessive and unfair rates and fees on certain personal loan products.
The regulatory framework in Newfoundland and Labrador will come into effect on June 1, 2024.
| Licensing requirements | High-cost credit lenders in Newfoundland and Labrador will have to be licensed to operate in the province. The license number should be made visible on the lender’s storefront or website. |
| Cooling-off period requirements | High-cost credit lenders must provide a 4-day “cooling off” period, which allows borrowers to cancel their loan agreements without penalty. |
| Disclosure requirements | High-cost credit lenders must clearly disclose relevant information about loan products at all brick-and-mortar locations, on websites, or verbally over the phone. The terms of the loan product must also be included in a written agreement. |
| Interest Rate | While there are no provincial regulations, there are federal limits on how much a personal loan lender can charge. Current the criminal interest rate is set at 47% APR, however, starting January 2025, loans valued at $1,000 or more are subject to a 35% APR limit. |
Personal Loan Costs In Newfoundland & Labrador
When comparing the cost of a personal loan in Newfoundland and Labrador, there are three main factors you must consider:
- Interest Rate – The interest rate you’re approved for will have the biggest impact on your total loan costs. To secure the most affordable loan for you, always be sure to get a loan quote and compare your options.
- Fees – Fees can quickly add to the cost of your loan. When comparing costs be sure to look at the APR and not the AIR, as the APR includes the interest and fees (ex: administrative fees and loan origination fees). You should also factor in other fees such as prepayment and late payment fees.
- Term Length – The term length can also influence the cost of the loan. In general, the longer the term the more interest you’ll pay and vice versa.
| 2 Year Loan | 5 Year Loan | |
| Loan Amount | $15,000 | $15,000 |
| Interest Rate | 24.99% | 24.99% |
| Term Length | 24 months | 60 months |
| Monthly Payment | $800.50 | $440.18 |
| Total Cost | $19,211.94 | $26,410.91 |
| Total Interest Paid | $4,211.94 | $11,410.91 |
Can A Personal Loan Affect My Credit?
Every credit product you use can impact credit if reported to the credit bureaus. When it comes to personal loans, your credit may be affected in the following ways:
- Credit Inquiry – When you apply for a personal loan in Newfoundland and Labrador, you’ll usually be subject to a hard credit check. This may negatively affect your credit.
- On-Time Payments – If your lender in Newfoundland & Labrador reports your payments to the credit bureaus, every on-time payment can help build a positive payment history which, in turn, can help build your credit.
- Missed Payments – As with your timely payments, every incomplete, late or defaulted payment will also be recorded which can negatively impact your credit scores.
Can You Get A Loan On Employment Insurance (EI) In Newfoundland And Labrador?
If you’re unemployed, you may be collecting EI benefits to tie you over until you find your next job. But how do lenders view this type of income when you apply for a loan?
While conventional lenders might insist on traditional income from loan applicants, some alternative lenders accept this form of non-employment income. In addition to EI, these lenders may even accept other similar income types, including Canada Child Benefit (CCB) payments, disability benefits, and so forth.
Keep in mind, however, that you’ll likely pay a higher interest rate because your lack of employment will increase the lender’s risk.
Places To Help You Get A Job In Newfoundland And Labrador
If you’re having trouble finding a job on your own, you may have better luck with the help of a staffing agency. Here are a few reputable employment agencies to help you get a job in Newfoundland and Labrador:
Robert Half
Robert Half has staffing offices across Canada, including in Newfoundland and Labrador, helping Canadians find work in their respective fields. Job seekers can find temporary, permanent, contract, part-time, full-time, and remote work using the services of Robert Half recruiters. In terms of job types, Robert Half specializes in finding work within the fields of finance, accounting, administrative and customer support, technology, marketing, and legal.
Jump Recruitment
Jump Recruitment is a staffing agency that works to connect job seekers in Newfoundland and Labrador with employers. While the company has offices across Canada, it prides itself on its local facilities to ensure they can more closely and intimately find jobs for workers with the right employers.
Integrated Staffing
Integrated Staffing has locally owned offices across Canada, including in Newfoundland and Labrador. The company specializes in multiple industrial sectors, including construction, manufacturing, logistics, oil and gas, trades, and hospitality. Job candidates are screened and directed to job openings that match their qualifications, skill sets, and career aspirations.
Alternatives To Personal Loans In Newfoundland And Labrador
If you need financial help, there are other options to consider besides personal installment and short-term loans in Newfoundland and Labrador. Here are some public programs available to that provide financial support:
| Financial Resource | Link |
| Newfoundland and Labrador Income Support | Learn More |
| Canada-Newfoundland and Labrador Housing Benefit | Learn More |
| Provincial Home Support Program | Learn More |
| Newfoundland and Labrador Child Benefit (NLCB) | Learn More |
| Newfoundland and Labrador Income Supplement | Learn More |
| Newfoundland and Labrador Seniors’ Benefit | Learn More |
Other Financial Assistance Programs In Newfoundland And Labrador
If you’re in a financial predicament, you may be able to find programs throughout the province to help. One way to quickly find what you’re looking for is by using www.211.ca, a website that connects Canadians with local resources and services. Here are a few resources you’ll find on this site:
Food Banks
Residents of Newfoundland and Labrador who are having trouble affording groceries may find some relief by visiting one of several food banks in the province, including the following:
- Bridges to Hope food bank: 37-39 Cookstown Rd, St John’s, NL, A1C 4G7
- Emmaus House Food Bank: 10 Brother McSheffrey Lane, St John’s, NL, A1A 5B2
- Labrador West Ministerial Food Bank: 610 Hudson Dr, Labrador City, NL, A2V 1M1
- St. Kevin’s Food Bank: 454 Main Rd, Goulds, NL, A1S 1E8
Emergency Shelters
If you’re experiencing homelessness or at risk of becoming homeless, some emergency shelters in Newfoundland and Labrador provide short-term accommodations. Here are a few you’ll find on 211.ca:
- Safe Haven Shelter: 10 St. Clare Ave, St John’s, NL, A1C 5B8
- Women’s Emergency Shelter: 150 Lemarchant Road, St John’s, NL, A1C2H2
- The Gathering Place: 172 Military Rd, St John’s, NL, A1C 5P5
Free Clothing, Furniture, and Personal Items
A handful of centres provide free items to residents of Newfoundland and Labrador, such as clothing, household goods, and furniture:
- Evangel Pentecostal Community Church Furniture Bank: 130 Magee Rd, Gander, NL, A1V 2R3
- New Life Christian Centre Furniture Bank: 24 Balbo Dr, Clarenville, NL, A5A 4G3
- Peninsula Used Clothing and Food Bank: 85 Highway 410,, Baie Verte, NL, A0K 1B0
Rental Housing Program
Newfoundland and Labrador Housing Corporation’s Rental Housing Program helps low-income residents who cannot afford safe and suitable rental housing in the private market. Rent paid by tenants in non-profit housing is based on income. Tenants whose rent is not paid through Income Support may be able to pay rent based on 25% of their total net monthly income. The difference is made up by federal and provincial subsidies.
Where Can You Find Consumer Protection Offices In Newfoundland And Labrador?
Businesses in Newfoundland And Labrador have rules to follow when it comes to how they treat their customers. To ensure that consumers are treated fairly when dealing with businesses, the Consumer Protection and Business Practices Act was established. Businesses operating in Newfoundland And Labrador must comply with the rules under this Act when providing goods and services to consumers.
If you believe that you’ve been treated unfairly by a local business, you can contact a representative from Digital Government and Service NL in one of the following ways:
- By phone: 1-709-729-4834
- By email: servicenlinfo@gov.nl.ca
- By mail:
- 100 Prince Phillip Drive
- P.O. Box 8700
- St. John’s, NL A1B 4J6
