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Secured Personal Loans in Canada

Whether you need $10,000 or $500,000 – Alpine Credits is the best alternative for conventional bank loans in Canada.

In the ever-evolving landscape of personal finance, navigating the options for a loan in Canada can be key to unlocking your dreams.

Whether you’re eyeing some home improvements, pursuing further education, or seizing the vacation you’ve always dreamed of, a conventional loan can be a versatile companion on your journey.

At Alpine Credits, we will guide you through the world of secured loans, demystifying the process to help you make informed decisions that align with your financial goals and secure the funds you need swiftly and conveniently.

Why apply for a secured personal loan?

Applying for a loan is a personal matter, so your reasons are yours. Here are some of the most common reasons why Canadians apply for a loan:

  • One lump sum: With a secured loan, borrowers receive a lump sum amount which they can use for any purpose, including consolidating debt, renovating their homes, or making large purchases. This makes it easier to pay for large purchases without saving money in advance.
  • Fast funding: Most standard loans are typically unsecured loans, lenders won’t have to assess any assets, making the approval process faster. However, even with collateral, many lenders offer an online application process and same-day or next-day funding directly to your bank account.
  • Lower interest rate: According to Statistics Canada, the average interest rate on a conventional loan is 9.39%, which is considerably lower than on credit cards at 20.54%. This means more money can be used to pay the principal, and you can pay off your loan faster.
  • Higher borrowing limit than credit card: A standard loan can give borrowers a larger amount of money than the percentage limit of a credit card. For example, a home equity loan from Alpine Credits can give up to $500,000 if it is within 75% of the home equity value, whereas credit cards depend on the approved credit limit. A larger home equity value will signify a higher funding potential compared to a traditional loan.
  • No collateral requirement: With an unsecured loan, borrowers do not have to put down any cash deposit or other type of collateral. However, this will come at a higher interest rate than with a secured loan and will depend on a good credit score.
  • Easier to manage: A conventional loan comes with a single, fixed-rate monthly payment plan, which means streamlining your loan payments into just one monthly payment. If you use the funding for debt consolidation, you won’t have to remember multiple payment structures and due dates while saving on interest.
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Why Canadians choose to get a loan from Alpine Credits

For over 50 years, Alpine Credits has helped Canadian homeowners with home equity financing. All you need to qualify for a loan at Alpine Credits is to own your home.

Alpine Credits makes the process quick and simple. You can get a no-obligation quote and personalized recommendations from our Financial Solutions Specialists, all from the comfort of your home. Homeowners get approved – regardless of your credit, age, or income.

If you’ve owned your home for a few years, chances are its value has likely increased. Now is a great time to unlock the potential in your home and achieve the financial coverage you need!

What is a personal loan?

As a type of installment loan, it allows consumers to borrow a fixed amount of money and pay it back over a period of time. Depending on the loan details, the loan payments will consist of a portion of interest and a portion of principal.

As mentioned before, an unsecured loan is not tied to a specific purchase. It can be used to cover unexpected home repairs and medical bills or planned vacations or home renovations.

With households increasing their use of loans rather than credit cards, more and more Canadians are searching for lenders that will provide quick approvals, lower interest rates, and fast funding. This is where Alpine Credits and home equity financing come in.

How do they work?

With this type of funding, the borrower will repay the lender, which could be a traditional institution like banks and credit unions or alternative lenders like Alpine Credits, in fixed monthly installments over a set period. Depending on the agreement, the loan interest rate can also be fixed or variable.

Alpine Credits provides homeowners with flexible home equity solutions that can be customized to fit their financial situation. A loan in the form of home equity financing is the quickest and easiest way to borrow money against your home equity.

Equity is the difference between the current market value of your home and the outstanding balance on your mortgage. For example, if you have a $100,000 balance on your mortgage and the current value of your home is $500,000, your home equity value would be $500,000 – $100,000 = $400,000.

Home Equity Loan Equation

With an Alpine Credits home equity loan, you could have access to up to 75% of your home’s equity within a week.

Remember that the repayment schedule for most standard loans is typically monthly, but some lenders may give you the option to change to a bi-weekly or weekly schedule. In regards to prepayment, open loans allow you to make additional payments without penalties, while closed loans require that you adhere to the original payment schedule to avoid prepayment fees.

Indicators that you might need loans in Canada

Here are some key goals and milestones that Canadians get loans for:

  • Buying or financing a new vehicle – Whether you’re buying your first car or adding a second one, financing a new vehicle is a costly matter. With a loan, you can use the funds to buy almost anything, whereas many auto loans may limit you to the type of vehicles you can purchase. Since they are typically unsecured loans, your car is not tied to it, unlike with an auto loan.
  • Consolidating other loans like credit card charges that have high interest – Using an installment loan to pay off multiple debts helps you get rid of multiple payments while enjoying a significantly lower interest rate.
  • Paying education costs for yourself or your children – If you are planning to advance your skills or want to secure your children’s future, an investment in education is a strategic yet costly move. Additional financing from a loan can bridge the gap in your funding.
  • Funding home renovations to improve its overall value – The flexibility of a loan provides a convenient financial solution for homeowners to not only enhance their quality of life but also increase property value without depleting their savings.
  • Supporting your transition into retirement – With a shift to fixed income, you can cover unforeseen expenses and enhance the quality of your retirement living with loans.

All of these usually require large loan amounts that can be difficult to leverage through a standard loan in Canada. With home equity financing, you can convert your home’s locked value into capital, which can help you meet your financial needs.

Types of installment loans

There are two main types of loans, depending on whether you have collateral or not.

Unsecured

Unsecured funding will not require collateral. Since there are no collaterals, you’ll generally pay more interest because the lenders will assume more risks. In addition, a good to excellent credit score is required by lenders for this type of loan.

Secured

Secured financing will require collateral before approval and is one of the few low interest loans in Canada.

Since secured financing involves collateral, lenders perceive the borrowers as less risky and thus, interest rates are lower. In the case of traditional loans, lenders give a lump sum repaid by the borrower over time and usually offer a fixed repayment term of between 6 and 60 months.

Home equity loans and lines of credit

At Alpine Credits, we provide loans through home equity financing, which uses the equity stored in your home. Home equity financing options can come with either a fixed-rate loan or a variable-rate loan.

Home equity loans are also known as second or third mortgages. Just like a traditional loan, a home equity loan provides borrowers with a lump-sum amount that they’ll repay over a set period.

Since home equity loans are secured against your home, borrowers can enjoy a fixed-rate loan with lower interest rates than conventional mortgages.

On the other hand, a Home Equity Line of Credit (HELOC) works like a credit card, so you can borrow money and pay it back multiple times if it is within your credit limit and draw period (usually ten years). HELOCs come with a variable rate that varies based on changes in the economy.

Benefits of home equity loans

Your equity is usually sizeable and covers most projects

Loans using home equity is based on the value of your home. This allows you to take out up to 75% of your home equity to cover the cost of your project or goal.

You can access funds quickly in an emergency

Life is full of surprises. With Alpine Credits’ fast application process, you can get approved for home equity loans in a week. Customers usually hear back in 24 hours and funds are deposited into their accounts in a few days. This can be crucial when time is of the essence, during an emergency or other urgent situations.

They allow you to consolidate loans effectively

Home equity financing offers competitive interest rates compared to other unsecured loans in Canada. You can use it to pay off high-interest loans in full, such as credit card debt and student loans. This streamlines your multiple loan payments into one, often with lower interest costs.

How to qualify for a personal loan in Canada

Standard personal loans in Canada require credit checks and a favorable financial history. This may be unrealistic for some Canadians, as banks and government institutions are the main sources of these loans.

Personal loans in Canada that use home equity financing typically require you to own at least 25% of your home. This is usually achieved through regular mortgage payments. Apart from this, many of the conditions depend on which lender you decide to approach for your financing.

With Alpine Credits, you won’t need a high credit score or income, nor do you need to meet any age requirements. Our experts work with applicants to come up with a plan that’s flexible and suited to their situation. You can get the best personal loan options in Canada if you have equity in your home.

Our application process has a 24-hour turnaround. Which makes it easy for you to get financing. In most cases, applicants can get approved by the next day and have the funds deposited into their accounts within a few days.

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personal loans canada

What do you need to apply?

Unlike applying at big banks, you don’t have to worry about pulling up a bunch of credit reports and payment slips. At Alpine Credits, you’ll be asked to provide a few easy documents proving some details about your home. Here’s what you can expect:

  • Valid identification— In most cases, a passport or valid driver’s license will work as valid forms of ID. You also must be at least 18 to be eligible for a loan. On a similar note, you also need to be a Canadian resident or permanent resident to qualify.
  • Proof of ownership and insurance— With a home equity loan from Alpine Credits, you need to be a homeowner to qualify. As such, you may be asked to provide proof of home ownership. In addition, your home must be insured to qualify for a home equity loan, so you may be asked to provide proof.
  • Mortgage payment history— To be eligible for a home equity loan at Alpine Credits, homeowners should have paid down at least 25% of the property’s value. You can show proof of this by providing your first mortgage statements.
  • Home appraisal— To compute your home equity, a home appraisal will provide the necessary market value of the property. As such, you must provide a home appraisal document indicating that your home has been appraised.

Overall, applying for a home equity loan is a straightforward process.

  1. Apply online: Answer a few simple questions to see how much you qualify for. There is no obligation, and it won’t affect your credit score.
  1. Get approval: Unlike a traditional financial institution, you only need to qualify for a loan at Alpine Credits to own your home. Once qualified, one of our lending specialists will help you customize your loan details. During this step, it is essential to present some documents, which include identification, proof of income, and your property and mortgage information.
  1. Funding: Review and sign the loan agreement once the application is approved. Funds are deposited directly into your active bank account within a week.
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How to apply

Apply Online

Answer a few simple questions to see how much you qualify for. There is no obligation, and it won’t affect your credit score.  

Get Approval

During this step, it is essential to present some documents, which include identification, proof of income, and your property and mortgage information.

Funding

Review and sign the loan agreement once the application is approved. Funds are deposited directly into your active bank account.

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How do you calculate payments and interest on a personal loan?

There are several ways to calculate your monthly payment and interest on a loan. You can use an online calculator to understand the terms of your loan. This can help you organize your payment plan.

When calculating your loan, it is important to consider the principal amount, interest rates, payment frequencies, prepayment and other applicable fees. A loan calculator can help you calculate:

  • Total loan payment amount (principal and interest)
  • Interest
  • Additional costs

A calculator can also show you how your loan and interest amounts can change if you increase the size of your monthly payments.

Calculating personal loan in Canada

How Alpine Credits compares

A graph comparing loan examples

Credit cards, lines of credit, or other types of unsecured loans often come with high-interest rates and hidden fees. With a secured loan at Alpine Credits, homeowners can avail themselves of lower interest rates and higher funding potential and access money through an asset they’re already familiar with and own– their home. 

Contact a Financial Solutions Specialist today to get started. 

Find loan options in your area

Click on the links below to get started, and see the mortgage options available to you, in the provinces we serve across Canada!