With the recent two back-to-back interest rate cuts by the Bank of Canada, it has become increasingly inexpensive to borrow money. Now is a good time to consolidate all the high-interest loans or credit card debts you might have. To help you, we’ve found the lowest interest loan in Canada.
The prime rate for the Bank of Canada went from 1.75% to 1.25% to 0.75%. This rate is used by the major Banks in Canada when they lend you money. On loan, the price you get is usually prime rate + a certain percentage (This rate varies with your creditworthiness).
Related article: How do you calculate interest rate and how it can make you rich?
Where can you get the lowest interest loan in Canada?
There many places where one can apply to get a personal loan. How do you know if the financial institution is offering you their lowest rate? The old mentality that banks can provide you with the lowest price is old. Competition in that category is now fiercer than ever. Many online financial lending institutions can offer the same rates as the big banks, and many times, they can beat them.
I found the perfect loan comparison site that searches through multiple lenders to found the one that will offer you the lowest rate with the best condition. Ratesupermarket is the best service out there, and I highly suggest you give them a try. They have an abundance of Special Offers, and their service works like a travel site aggregate. They sift through all the available lenders in their database, and they show you all the options available. The ability to select the lending partner is at your convenience. Their service is powered by Loan connect.
Here are their loan characteristics.
|Loan Size||$500 – $50,000|
|Loan Type||Unsecured personal loan|
|Loan Term||6 to 60 months|
|Interest Rates||4.6% to 46.96%|
|Minimum Credit Score||None|
|Closing/Origination Fees||Generally around $100|
|Early payment Fees||None|
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What you need to get a personal loan
These are the minimum requirements necessary to apply for a loan.
- No minimum credit score is required.
- If you want to verify your credit, please click here.
- A debt payment to income ratio of less than 60%.
- Your debt payments don’t total over 60% of your income.
- You can apply even if you had a past bankruptcy or consumer proposals.
- Lenders are vying for your business; hence you will get the best possible interest rate.
- Have a valid bank account for the repayments.
Who can apply?
These are the application requirements.
- You’re a Canadian citizen
- You’re the age of majority in your province
Top 10 Reasons to get a personal loan.
- Buy a car
- Debt consolidation
- Purchase an item
- Investment purposes
- Rebuild your credit
- Pay off credit cards
- Grow your business
- For home improvement
- Late bills and expenses
- Take a vacation
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Loan Connect is an online broker that deals with multiple lenders and links you with the best one for you. The advantage is that with only one credit application, you will have access to a plethora of lenders, and they’re all willing to offer you the best interest rate in Canada. Hence, there’s no need to visit many lending institutions or, worse, perform a plethora of credit applications that have the dire consequence of ruining your credit.
When applying for a loan, the key is to be sure that you’re building wealth when doing so. Getting a lower interest consolidation loan is a certified way to build wealth because it’ll help you get rid of the higher interest loan. Even a car loan can seldom be considered a good investment. If it’s to replace an old car that is costing hundreds or thousands of dollars in repairs, it’s a wise decision to replace it with a newer model.
In my journey to be financially free in 5 years, I will use Loan Connect as my loan provider. Mainly as a means to invest the maximum I can in the stock market. The recent stock market meltdown has opened so many attractive investment opportunities; I’d be a fool not to take advantage.
Related article: Stock markets and coronavirus: 3 powerful stocks ready to launch.
Thank you for reading my article and don’t forget to leave a comment.