Frequently Asked Questions

Should I borrow?

Yes, provided you can handle the debt and provided the borrowing will benefit your business/household. Handling the debt means that you will be able to repay the principal and interest without undue hardship on you or your business/household.

What do I have to do to get a loan?

When you apply for the loan, you must provide proof of income i.e paystubs/letter of employment/T4/NOA and financial statements may need to be provided. You will need to have two pieces of government issued ID as well.

What types of loans are available?

Fixed Rate Loans: Payments remain the same for the life of the loan. Housing cost remains unaffected by interest rate changes and inflation.

Floating Rate Loans: Also known as a variable rate or adjustable rate, refers to any type debt instrument, such as a loan, bond, mortgage.Any interest rate or dividend that changes on a periodic basis.

What factors affect loan payments?

The amount of the loan financing, the size of the down payment, the interest rate, the length of the repayment term and payment schedule will all affect the size of your loan payment. So will a low credit score in that it will put your mortgage financing at a higher rate.

How does the interest rate factor in securing loan/debt financing?

A lower interest rate allows you to borrow more money than a high rate with the same monthly payment. Interest rates can fluctuate as you shop for financing, so ask lenders if they offer a rate “lock-in" which guarantees a specific interest rate for a certain period.

How large of a down payment do I need?

There are financing loans now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you’ll have.