--- title: Personal Loans - Unsecured description: Looking for a borrowed down payment, to improve their debt-to-income ratio for mortgage qualifying, or to access funds between mortgage renewal terms? image: https://www.richardsmortgagegroup.ca/hubfs/personal-loans-feature.jpg --- [![Richards-Mortgage-Group-LOGO](https://www.richardsmortgagegroup.ca/hs-fs/file-2071180059-png/RMG-img/RMG-HomePage/Richards-Mortgage-Group-LOGO.png?width=350&name=Richards-Mortgage-Group-LOGO.png)](https://115190.hs-sites.com/richards-mortgage-group-home) [![facebook](https://www.richardsmortgagegroup.ca/hs-fs/file-2070806601-png/RMG-img/RMG-HomePage/fb.png)](https://www.facebook.com/richardsmortgagegroup)[![twitter](https://www.richardsmortgagegroup.ca/hs-fs/file-2071180019-png/RMG-img/RMG-HomePage/tw.png)](https://twitter.com/MortgageIntell)[![google plus](https://www.richardsmortgagegroup.ca/hs-fs/file-2070806606-png/RMG-img/RMG-HomePage/gp.png)](https://plus.google.com/+RichardsMortgageGroupCanada/about)[![linkedin](https://www.richardsmortgagegroup.ca/hs-fs/hub/115190/file-2070806596-png/RMG-img/RMG-HomePage/li.png)](https://ca.linkedin.com/in/richardsmortgagegroup)[![LET’S TALK](https://no-cache.hubspot.com/cta/default/115190/e82b3a4f-447a-4c33-b6c9-d1f754bc1167.png)](https://cta-redirect.hubspot.com/cta/redirect/115190/e82b3a4f-447a-4c33-b6c9-d1f754bc1167) ![Photo by Tomas Yates on Unsplash](https://www.richardsmortgagegroup.ca/hs-fs/hubfs/personal-loan-tomas-yates-696872-unsplash.jpg?width=2000&name=personal-loan-tomas-yates-696872-unsplash.jpg "Photo by Tomas Yates on Unsplash") # Personal Loan Programs - Unsecured There are many reasons why a customer might need a personal loan in conjunction with or to compliment mortgage financing on a property. Three very popular applications are as follows: 1. **Down payment loan** as there are certain mortgage lenders in Canada that permit borrowed funds for down payment provided you have a good credit rating. 2. **Renovation financing** when mortgage refinancing is unavailable (not enough equity or can't qualify) or you are between mortgage term renewals and don't want to or can't break the existing contract. 3. **Debt consolidation** or restructuring to reduce your monthly payment obligations hence increase the mortgage amount for which you can qualify. --- ### What does personal borrowing mean? "Personal" borrowing means lending that is not tied or "secured" to any of your assets. You can obtain personal financing from a retail bank (TD, Scotia, RBC, etc.) or from a number of personal loan lenders, some of which we can direct you to. Some personal borrowing examples: 1. **Credit cards** - easy to get and convenient for smaller projects, but interest rates can be high to very high, and unpaid/outstanding balances can impact your ability to qualify or re-qualify for a mortgage.  Requires discipline to repay the balance. 2. **Personal line of credit** - easier to get, interest rate typically lower at [prime rate](http://www.rbcroyalbank.com/rates/prime.html) plus 2 or 3%, and you can pay it off then re-use it. However, unpaid/outstanding balances can also impact your ability to qualify or re-qualify for a mortgage and require discipline to repay the balance in full. 3. **Personal loan** (see below) gets you funds up front at a competitive interest rate, and typically offers a structured repayment plan to make sure you pay the loan off in a specified time frame, say 1 to 5 years, and the longer the payback period the lower the payment, hence less impact on mortgage qualifying ratios.   The opposite of personal borrowing is "secured" borrowing, such as a mortgage or a vehicle loan, which is tied to or secured by the asset. --- ## 3 Personal Loan Lender Choices We currently have access to three personal loan lenders, each for different credit profiles. Better credit attracts lower interest rates, so [have an idea of where your credit score sits as an important first step](https://www.richardsmortgagegroup.ca/blog/how-to-access-your-credit-report). ### **Borrowell** [![LenderProgramBorrowell](https://www.richardsmortgagegroup.ca/hs-fs/hubfs/LenderProgramBorrowell.jpg?width=272&name=LenderProgramBorrowell.jpg)](https://app.borrowell.com/#/public/apply)The first program from **Borrowell** has the lowest rates and a longer term and would likely be the best fit for a down payment loan if you are trying to create a [zero-down mortgage](https://www.richardsmortgagegroup.ca/blog/bid/113476/is-there-such-thing-as-a-zero-down-mortgage) and have good credit. Keep in mind that in addition to your mortgage, you will also have the personal loan to repay.  With Borrowell, you can [get a quote](https://app.borrowell.com/#/public/apply) on a loan in less than a minute, and getting a quote won't affect your credit score. --- ***Payment Table** - use this handy payment factor table to determine what a monthly payment might look like at the different interest rates for any lender presented on this page. The** payment factors are per $10,000 borrowed**, so if you want to borrow $20K instead, you can simply do the math and double the payment.* | **Rate%** | **Term (years)** | **~Pmt $/mo** | | --- | --- | --- | | 5% | 5 | $190 | | 10% | 5 | $215 | | 15% | 5 | $240 | | 20% | 5 | $265 | | 25% | 5 | $295 | *PS - you can do your own monthly payment calculations for different terms using our mortgage calculator, which will be pretty close. **Make sure you first set the term then the amortization to the same value.** For example, 5 year term, then 5 year amortization. You can [access the calculator here](https://www.richardsmortgagegroup.ca/canadian-mortgage-calculator).* --- ### **Lendful** The second program from Lendful is also for better credit. You need to have had credit for at least 3 years and no active derogatory credit. Like Borrowell, the interest rate is determined by the amount of risk on your file. Lendful has a fixed lender fee unlike Borrowell who presents a range of lender fees. The lender fee is used to fund their operations and is added to the loan amount. For example, if you borrow $5000 with a 2% lender fee ($100), the total loan that needs to be repaid is set at $5100. ### **Fairstone** The final lender offers both unsecured and secured lending program for customers with near prime credit that can't presently get financing from a traditional lending source, such as a Bank or from our other two lenders. Rates are much higher, but can sometimes be justified if they help improve your situation, for example as part of a debt consolidation program. [![LenderProgramLendfulFairstone](https://www.richardsmortgagegroup.ca/hs-fs/hubfs/LenderProgramLendfulFairstone.jpg?width=549&name=LenderProgramLendfulFairstone.jpg)](https://www.richardsmortgagegroup.ca/personal-loan-call-back-request)   ### [Click here to request a personal loan quote from either **Lendful** (600+ credit) or **Fairstone **(550+)](https://www.richardsmortgagegroup.ca/personal-loan-call-back-request) ### [Click here to request a personal loan quote from **Borrowell**](https://app.borrowell.com/#/public/apply?affwp_ref=M3_QNTSChristopherRichards) (660+) ## More Resources [Access Your Credit Score](https://www.richardsmortgagegroup.ca/blog/how-to-access-your-credit-report) [Borrowed Down Payment Program](https://www.richardsmortgagegroup.ca/blog/bid/113476/is-there-such-thing-as-a-zero-down-mortgage) [Financing Home Improvements](https://www.richardsmortgagegroup.ca/financing-home-improvements-canada) [Dealing with Debt](https://www.richardsmortgagegroup.ca/debt-challenges) [Debt Consolidation Mortgage](https://www.richardsmortgagegroup.ca/debt-consolidation-mortgage) [What is a Debt Service Ratio?](https://www.richardsmortgagegroup.ca/blog/bid/79131/what-is-a-debt-service-ratio) [More Amount Income & Debt](https://www.richardsmortgagegroup.ca/more-about-income) [Can You Get a Mortgage?](https://www.richardsmortgagegroup.ca/can-i-get-a-mortgage-canada)   [![Share on Facebook](https://static.hubspot.com/final/img/common/icons/social/facebook-24x24.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fwww.richardsmortgagegroup.ca%2Fdown-payment-loan-canada%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on LinkedIn](https://static.hubspot.com/final/img/common/icons/social/linkedin-24x24.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.richardsmortgagegroup.ca%2Fdown-payment-loan-canada%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://static.hubspot.com/final/img/common/icons/social/twitter-24x24.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fwww.richardsmortgagegroup.ca%2Fdown-payment-loan-canada%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fwww.richardsmortgagegroup.ca%2Fdown-payment-loan-canada%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=Personal%20Loans%20-%20Unsecured) [![Share on Email](https://static.hubspot.com/final/img/common/icons/social/email-24x24.png)](mailto:?subject=Check%20out%20https%3A%2F%2Fwww.richardsmortgagegroup.ca%2Fdown-payment-loan-canada%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fwww.richardsmortgagegroup.ca%2Fdown-payment-loan-canada%3Futm_medium%3Dsocial%26utm_source%3Demail) As licensed professional mortgage brokers, we know exactly what it takes to [qualify you for a mortgage](https://www.richardsmortgagegroup.ca/free-ebook-can-i-get-a-mortgage) and we do more than just get you a great mortgage at a great rate, we will show you the way, too. 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