Loans Canada Mortgages review
- Interest Rate (APR)
- Varies
- Loan Term
- Varies
- Min. credit score
- 400
- Provincial availability
- All of Canada
Summary
Submit a single application and compare mortgage options from multiple lenders with Loans Canada.
Pros
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Compare options from multiple lenders
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Free to use
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Borrowers with less-than-good credit can apply
Cons
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Brokerage, not a direct lender
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Limited to Loans Canada partners
How do Loans Canada mortgages work?
Loans Canada is a mortgage broker. Unlike a direct lender, which approves and funds mortgages for home owners, Loans Canada is an online platform where you can submit a single mortgage application and get matched with suitable mortgage options from multiple lenders.The good thing about using Loans Canada mortgage brokerage services is that it’s easy to narrow down and compare lenders that work with borrowers matching your needs and financial profile. The downside is that you’re limited to lenders that have partnered with Loans Canada.
Where are Loans Canada mortgage brokerage services available?
Loans Canada operates in all Canadian provinces and territories. But not all of its partner lenders are the same. When you submit a mortgage application, you’ll find out which partners are available in your region for your financial needs.Which mortgage providers are partnered with Loans Canada?
Loans Canada works with more than 200 mortgage, car loan and personal loan providers. That being said, its catalogue of mortgage partners is much smaller than its catalogue of personal loan partners. Some of Loans Canada‘s mortgage partners include:- QuestMortgage
- Meridian Credit Union
- Alpine Credits
- Spring Financial
- Nesto
How much do Loans Canada mortgage brokerage services cost?
It’s completely free to use Loans Canada mortgage brokerage services. Submit an application and compare home loan options from available lenders without paying any fees. Loans Canada makes a commissions from its partners when customers move forward with funding.
Note that if you move forward with financing, your mortgage provider will charge various fees. These include interest charges, loan origination fees, legal fees, mortgage insurance (if required), early repayment penalties and late payment penalties.
Loans Canada doesn’t administer or collect fees on behalf of lenders. If you have any questions or disputes, you’ll have to contact your lender directly.What interest rates will I pay with a Loans Canada mortgage?
Your mortgage interest rate is based on factors like your income, credit score, debt-to-income ratio, mortgage amount, the size of your down payment and market factors.
On average, 5-year fixed or variable mortgage interest rates in Canada fall around 5.51%-7.39%. The rates advertised by the Loans Canada partners listed above mostly fall within, or above, this range. You could get a low-rate mortgage, but ultimately it depends on the strength of your financial profile.
What are the benefits of Loans Canada mortgage broker services?
- Quick application. It’s easy to apply for a mortgage through Loans Canada. It only takes a few minutes to get a list of suitable lenders.
- One application, multiple options. Get quotes from multiple lenders to give you as many options as possible, so you can find the best mortgage for your needs.
- Many types of mortgage. Explore mortgages for just about every type of borrower, from first-time buyers to established homeowners looking to refinance.
- Free to use. You won’t have to pay a fee to use Loans Canada‘s mortgage broker service, since the company earns commissions from its partners.
- Bad credit might be approved. Comparing options from multiple mortgage providers makes it possible to find lenders that work with bad credit borrowers. However, a minimum credit score of 400 is recommended.
What to watch out for
- Broker not a direct mortgage provider. Loans Canada is not a direct lender, so you’ll actually be borrowing from a different company.
- Partners only. You’ll only be referred to Loans Canada partner mortgage services, which means you could miss out on getting a better deal elsewhere.
- No in-person service. Loans Canada operates entirely online, so you can’t get in-person help or advice.
How do I get started?
Eligibility requirements
To apply for a Loans Canada mortgage, you must:
- Be at least the age of majority in your province or territory (18 or 19)
- Be a resident of Canada
- Have a minimum credit score of 400 (recommended)
Required documentation
Lender requirements for getting a mortgage through Loans Canada vary, but usually, you’ll have to provide the following:
- Government-issued ID. Show proof of ID like your driver’s licence or passport.
- Proof of income. Submit documents like recent pay stubs and Notices of Assessment (NOAs) to show that you can afford repayments.
- Consent for a credit check. You’ll have to let lenders pull your credit history to evaluate your creditworthiness.
- Property information. Provide information about the home you want to buy or the one you already own.
How to apply
To apply for a mortgage through Loans Canada, follow these simple steps:
- Visit the Loans Canada website, and select Apply Now at the top of the page.
- Indicate the type of loans you want (i.e. Mortgage or Mortgage Refinancing). Provide the required information such as your name, email address, statement of income and other details.
- Review and submit your mortgage application.
- See which lenders you’ve been matched with. View basic loan details, and follow up with your lender of choice. You may be required to provide more information.
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