Loans and Lines of Credit

A Loan will have set repayment terms and payments- eg-will be $10000.00 loan will be set up with a 5 year term and a $200.00 payment – they are open and payable at any time with no penalty and they are not re advanceable. A Line of Credit however is approved with a limit for a specified amount eg. 10000.00 limit- it can be used and paid with no restrictions. Payments are generally interest only, which make them very affordable. A line of Credit can be open and active for many years as long as it has been kept in good standing (works like a credit card).

A secured loan or mortgage would be secured with property or assets. For a mortgage, we would use the home as the security. For a car loan, we would use the car. If it was cash secured, we would use cash. Unsecured means we are lending on your signature and past credit history.

Owners would need to book an appointment with a Personal Banking Specialist to take an application, once approved owners would then sign and either pick up a cheque, or have cheque directed depending on what they were purchasing.

Once the Line of Credit has been approved, the owner would sign documents, then the Line of credit would be become available for self-serve use. This is normally attached to a chequing account for easy access.