Understanding Lending Options for Newcomers to Canada
Published September 27, 2023.
It can be hard to get a loan in Canada without any kind of credit history. Canadian banks and other lending institutions typically do not loan money to those without a credit history because there is not enough information available about them. Offering a loan to newcomers to Canada is seen as a risk that many lenders would prefer not to take. This can be frustrating for newcomers who require financial support to achieve their personal or professional goals in Canada.
At Windmill Microlending, we’re passionate about equipping skilled immigrants and refugees with the tools and resources that they need to become financially empowered. We offer microloans of up to $15,000 that skilled immigrants and refugees are eligible to apply for, even if they have no credit history at all.
It can be overwhelming, as a newcomer, to understand all of the funding options that are available to them in Canada. We reached out to Loans Canada, an excellent resource bringing all of Canada’s lenders in one place, to shed some light on this topic. They help people secure business loans, personal loans, mortgages, insurance and much more.
Researching different loan options can take a lot of time. The Loans Canada website makes it incredibly easy to search for the type of loan needed and there’s less time wasted between searching, applying and receiving an offer. In fact, it’s possible to have a first offer less than one minute after an application has been submitted through Loans Canada.
Loans Canada shares a comprehensive list of lenders who offer loans without doing any kind of credit check. These lenders typically require that the borrower has stable employment and they will ask for a recent bank statement as proof of funds. Some of these lenders may also require proof of address to ensure that a borrower is living in the country full-time.
Scott Satov, President at Loans Canada, states: “At Loans Canada, we want to provide newcomers with essential financial content and guidance, connecting them with suitable lenders, and assisting in building a credit history crucial for their successful integration into Canada. We also provide ongoing support to newcomers, helping them navigate the Canadian financial system and ensuring they have access to the resources they need to thrive in their new home.”
Loans Canada is the biggest online rate comparison platform in the country and a leader in financial literacy. The Loans Canada website connects newcomers with finance experts who can help them make informed decisions when it comes to taking out a loan for the first time in Canada.
In addition, the services provided by Loans Canada are available in both English and French – the French website is Prêts Québec. Newcomers in any province can find the funding they need, whether it’s a short-term loan or something that is needed over a longer period of time.
Starting a new life in Canada comes with a variety of expenses. In a time when the cost of living continues to rise, it can be overwhelming to manage finances. Getting a loan can really help immigrants and refugees move closer to achieving their professional and personal goals in Canada.
Learn more about how a Windmill microloan helps internationally-trained professionals pay for licensing, accreditation, professional exams, living expenses and more.