How to get a $10,000 loan in Canada
A $10,000 loan can help you pay for home renovations, a vacation, a car, or any number of other things. However, with so many lenders and types of loans to choose from, it can be hard to keep track.
Keep reading for some tips on selecting the right $10,000 loan in Canada. We’ll also show you how Alpine Credits makes it easy for homeowners to get approved.
How $10,000 loans from Alpine Credits work
At Alpine Credits, we specialize in home equity loans. These loans, as the name would suggest, allow you to tap into your existing home equity, which is calculated using the following method:
Home equity loans are some of the cheapest $10,000 loans in Canada. After all, you’re simply unlocking capital that’s tied up in your home.
Home equity loans are also a secured type of debt, which is another reason you’ll find interest rates much lower than those associated with unsecured loans like credit cards.
Check out this page for a comparison between an Alpine Credits loan and loan from other types of online lenders; the difference is staggering! The sample Alpine Credits loan comes with an annual interest rate of 5.75% while the competitor’s loan comes in at 47%!
To receive a $10,000 loan in Canada as a homeowner, contact Alpine Credits. We review applications within 24 hours!
What can you do with a $10,000 loan in Canada?
Now that you know how to get a $10,000 loan in Canada, let’s look at some of the common reasons for doing so.
Many Canadians have debt spread out across several credit cards or personal loans. A $10,000 loan can help you consolidate that debt, so you’re left with one simple monthly payment rather than having to keep track of several.
You can also typically find debt consolidation loans at much lower interest rates than, say, credit cards – especially if you’re going the home equity loan route.
Paying for renovations
Renovations can be a phenomenal investment in your home. They can be costly, though, which is where an extra $10,000 can certainly be handy. Many Canadians take out a loan for the purpose of renovating an investment property prior to selling.
In such cases, the profits from renovating and selling may more than cover the cost of interest on the loan.
Investment opportunities can come with little warning. Canadians who don’t have the liquid capital to seize on such an opportunity can promptly secure $10,000 worth of financing instead.
With the right investment and risk reduction measures, this can be a very profitable maneuver.
Funding an education
Education is also a very valuable investment. Under the right circumstances, loans of $10,000 secured through methods not typically associated with student funding can make financial sense.
Canadian homeowners, for example, often take out a home equity loan to pay for their child’s education. Doing so can help shield the student from the damaging effects of high-interest debt early in life.
Cash Flow can be challenging for many Canadians, particularly those who are self-employed. A loan of $10,000 can come in handy during times of uncertainty or hardship.
As you can see, there are many reasons one might be interested in a $10,000 loan in Canada. Thankfully, there are so many different lenders out there that cater to all different kinds of needs and borrowers, including Alpine Credits
Next, let’s look at the application process for a loan of this size.
The application process for a $10,000 loan in Canada
If you’re securing the funding via a home equity loan, you’ll typically need to have an appraisal before working with the lender to determine a suitable interest rate.
This process is fairly straightforward because home equity loans are a type of secured loan. If you’re going the unsecured route, your process will look something like this:
- Compare lenders to find the best interest rate based on your circumstances.
- Applying directly with the lender.
- Waiting for the lender to review your application.
- Following the next steps outlined by the lender if you’re approved. If you’re denied, you may consider applying elsewhere or making do without the loan if your reasons for refusal are likely to cause problems with other lenders.
The time it takes to get approved for a personal loan can vary substantially depending on the lender. At Alpine Credits, we process applications within 24 hours. Other lenders might take several business days.
In any case, you should receive an estimate when you apply.
How to evaluate $10,000 loans in Canada
It’s very important that you evaluate your potential loan based on your financial situation. Here are the factors that will impact your interest rate and whether you’re even approved for the loan.
Consider lenders that don’t require strong credit
Many Canadian lenders save their best interest rates for those with credit scores of 760 and above. That’s quite a ways off from Canada’s average credit score, which is around 650.
When shopping for a $10,000 loan, you’d often be better off prioritizing lenders that do not look at your credit score.
This has always been a major advantage of working with Alpine Credits; we assess your application not based on credit scores but rather your existing home equity. As a result, we’re able to offer very competitive loans regardless of what mistakes you may have made with credit in the past.
Look into current interest rates
The prime rate, set by the Bank of Canada, has an effect on loan interest rates. Here’s a glimpse at how prime rates have changed throughout history.
|Date||Rate||Change from Previous|
|April 1 2020||2.45%||-0.50%|
|March 18 2020||2.95%||-0.50%|
|March 11 2020||3.45%||-0.50%|
|October 31 2018||3.95%||+0.25%|
|July 11 2018||3.70%||+0.25%|
|January 24 2018||3.45%||+0.25%|
|September 13 2017||3.20%||+0.25%|
|July 19 2017||2.95%||+0.25%|
|July 22 2015||2.70%||-0.15%|
|January 28 2015||2.85%||-0.15%|
|September 15 2010||3%||+0.25%|
|July 21 2010||2.75%||+0.25%|
|June 2 2010||2.5%||+0.25%|
The Bank of Canada sets the prime rate based on current economic conditions. For example, at various points, authorities may want to encourage borrowing and spending while other circumstances may call for a more conservative approach.
While loans will always be available when you need them, it’s good to keep the dynamic nature of market conditions in mind if you have any flexibility when it comes to your goals.
Remember, different types of lenders evaluate you differently
While lenders are bound by regulations, they also have some degree of autonomy when it comes to evaluating applications.
Banks often seem to offer very low-interest low-interest rates on the surface but these rates are balanced out by the very stringent criteria they evaluate your application based on.
Lenders like Alpine Credits, on the other hand, charge slightly higher interest rates but have less-intense evaluation criteria.
How to qualify for a $10,000 loan with bad credit
You may be surprised to learn that it is possible to get a $10,000 loan with bad credit. Just prepare to secure the loan with a car or your home. Of course, if you own either of those things, it’s unlikely your credit score is bad enough to prevent you from securing a loan.
Nonetheless, everyone’s situation is unique and there are solutions available for people who fall under this umbrella.
If you don’t have collateral, lenders may ask you to submit a joint application with someone who has better credit than you.
Frequently asked questions
You can typically unlock home equity at much lower rates than with a credit card or unsecured loan.
A $10,000 loan should land in your bank account within a few business days. At Alpine Credits, we try to review applications within 24 hours. The deposit time can vary based on your needs and situation.
It depends on the contract you have with your lender. Some allow you to repay early with no penalty, while others impose a fee to make up for lost interest payments they were counting on.
It’s not uncommon for your credit to take a slight dip after you receive a new loan. As long as you make payments on-time, however, your score should recover.