Conventional loans
Last updated on April 29, 2022
On this page
Personal loans
About personal loans
Most banks and credit unions offer personal loan services to their clients. You will need to have an account with the institution to get one.
Different types of loans may be available to you, depending on your needs, credit history and income. Even if you have poor credit or limited income, options may still be available to you.
Costs of personal loans
The cost of borrowing from a bank or credit union will depend on the type of loan, the interest rate and other fees that may apply. A personal loan from a bank or credit union is usually less expensive than higher-cost options, like an advance on a credit card or a payday loan.
Some bank or credit union loans are secured, meaning you must have collateral (an asset like a car) to get the loan. If you default on loan repayments, the lender can take your collateral and sell it to recover what they are owed.
Carefully review the terms and conditions you will be asked to accept for the loan. When you agree to these terms, you are entering into what is known as a credit agreement. There are certain things to look for in the credit agreement.
Learn more about your rights and responsibilities or how to resolve an issue.
Lines of credit
About lines of credit
Many banks and credit unions offer lines of credit, which allow you to borrow money up to a maximum amount set by the lender. A line of credit is a type of revolving or 'open credit', like a credit card, meaning you can borrow when and however often you need to, if you make the required payments and meet any other requirements in the credit agreement.
Costs of lines of credit
Like other types of loans, using a line of credit will cost you interest charges and fees for things like late payments. However, a line of credit will usually cost you much less in interest than higher-cost options, like a cash advance on a credit card or a payday loan.
If you are thinking of getting a line of credit, shop around for one that best meets your needs. Pay attention to the interest rate (the lower, the better) and any fees.
Carefully review the terms and conditions you will be asked to accept. When you agree to these terms, you are entering into what is known as a credit agreement. There are certain things to look for in the credit agreement.
Learn more about your rights and responsibilities or how to resolve an issue.
Rights and responsibilities
Banks are federally regulated, meaning they must follow rules set by the federal government. Information on your rights under federal banking laws is available from the Financial Consumer Agency of Canada.
Credit union laws are provincially regulated. Information on your rights under B.C. credit union laws is available from the BC Financial Services Authority.
Resolve an issue
If you have concerns or a complaint about a bank, information is available from Financial Consumer Agency of Canada. Their website includes information on how to contact the bank with your concern.
You can also send a complaint regarding a bank to the Ombudsman for Banking Services and Investments.
If you have concerns or a complaint about a credit union, information is available from the BC Financial Services Authority. As credit unions are member-owned, you may also contact your credit union directly with your concern.