How difficult is it to get a bank loan

[Niko]

Hello,

How difficult is it to get a bank loan after you have landed in Canada and settled yourself by finding a job and accomodation? Because of no previous credit history how difficult can it be to find a bank that is willing to provide a loan to somedody who just came from abroad and has PR status?

 

[Leon]

This is why you have to show funds when you apply as a PR. It is not easy to get a loan when you have no credit. When I moved here, I could not even get a low limit credit card until I had been working for a year. If you need a loan, it's better to get a loan in your home country before you go where you do have credit.

 

[Niko]

You say that after 1 year you were able to get a loan? How big? Can I get a mortgage, so I don't need to rent, after 1 year?

 

[habib890]

You say that after 1 year you were able to get a loan? How big? Can I get a mortgage, so I don't need to rent, after 1 year?

-Having a full time job is an important factor to the bank to give you a mortgage. If you were employed full time for a year in Canada, I guess there is a good chance that some of the banks will give you mortgage or line of credit.
-In addition, if you face problem to get a credit card through usual way, try to get a credit by paying in advance. Some of the banks will keep a security deposit and issue you a credit card. For example, for a $500 limit credit card you have to keep $750 (returnable) in the account. Once you have the credit card and use it for 4-5 months you can request them to return your $750. It is a good way to start your credit file in Canada.
Thank you.

 

[Leon]

You say that after 1 year you were able to get a loan? How big? Can I get a mortgage, so I don't need to rent, after 1 year?

You would have to ask. Renting is really not that bad. Something breaks down, you call the landlord. When you own, you have to fix it yourself. My first credit card I got after year of working had a limit of only $1000. I bought a house after I was in Canada for 3 years. My real estate agent told me that if my bank would refuse me a mortgage, I should look for a mortgage broker who would get me the money somewhere else. A mortgage broker is supposed to find you the best rates for your needs from many different places. Same with insurance brokers you also find here in Canada. Instead of checking all the insurance companies yourself, you go to a broker and they hook you up with the cheapest insurance.

 

[canadiancoops]

I am an Account Manager for one of the banks here in Canada

If you are looking for a loan after coming to Canada, the bank will primarily look at your credit history and also your debt servicing, ie can your income sustain the payments. Now as you are new to the country the likelihood of getting a loan with limited credit will be remote. Its individual on every application but you may have to secure money for the first year to prove yourself for payments

I myself am an immigrant to Canada from the UK and had this problem.

Other recommendations would be to get a rogers wireless cell phone as they are the only cell phone company that report your monthly payments to the credit bureau (equifax and transunion)

Also set yourself up with a pre paid VISA/MASTERCARD card, certain banks need $1000, but other companies may only need as little as $90. This will also help you to set up a good credit. Try not to get too many cards or seek credit too often as this can have a negative affect on your credit

Banks often go on relationship values aswell so set up a savings scheme, this is huge

Also stability is a big factor, proving you have had the SAME job for at least a year and havent moved houses too many times

When it comes to mortgages it would be easier than an unsecured loan due to the collateral.

Any other questions just shout

 

[ankit0uc]

I have been banking with HSBC for couple of years. I moved to US from UK, HSBC International Banking division helped me in setting up a Bank Account and credit card ($5000 limit) in US free of charge, while i was in UK.

Now I am planning to move back to Canada and again HSBC has helped me in setting up a bank account and credit card (CAD$5000 limit) in Canada while I am in US.

So a good way to secure a credit card before entering a country is through your bank. Most of the banks have international banking division which help you in setting up a bank account and credit card.

That is a best way to establish your credit history.

 

[prem1965]

hi candaian scope,


i just landed in toronto.any chance of getting a bank job.iam an MBA and having enough exposure on financial areas.

 

[boltz]

I have been banking with HSBC for couple of years. I moved to US from UK, HSBC International Banking division helped me in setting up a Bank Account and credit card ($5000 limit) in US free of charge, while i was in UK.

Now I am planning to move back to Canada and again HSBC has helped me in setting up a bank account and credit card (CAD$5000 limit) in Canada while I am in US.

So a good way to secure a credit card before entering a country is through your bank. Most of the banks have international banking division which help you in setting up a bank account and credit card.

That is a best way to establish your credit history.

What an idea Sir Ji!! This is really a great tip!! Unfortunately, I have been banking with country specific banks that are not available in other countries like Cabnada

 

[andyridder]

I didn't find easy to get a bank loan. Can anybody tell me what is a good APR when applying for micro loan online? Klickcredit.com (<a href="klickcredit.com"> klickcredit.com </a>) offers 7 percent. Is it good or bad APR?