How Does a Line of Credit Application Work?
When you are ready to apply for a line of credit (LOC), our team will have your back every step of the way. Here are the main steps to take to get your LOC loan approved today:
1. Apply online in minutes or give us a call
Our online loan application is easy to complete. Prefer to talk to us? Give us a call at 1.866.446.7001.
2. Get instant credit approval
If your credit history checks out, you can get approved in no time! It's easy, quick borrowing (like it should be).
3. Enjoy your convenient safety net
Accessing your approved line of credit is easy. It’s attached to your chequing account for the convenience and speed you need. It’s the perfect safety net for those unexpected expenses.
Secured vs. Unsecured Line of Credit
Secured Personal Line of Credit | Unsecured Personal Line of Credit |
A secured line of credit is when you use your home, investment portfolio, or other item of value as collateral for your loan. | An unsecured line of credit is when you do not use collateral to apply for your line of credit. |
Enjoy a higher credit limit and lower interest rate as compared to unsecured credit lines. | Get a lower credit limit, starting at $5,000, with an interest rate based on your creditworthiness. |
Features a variable interest rate | Features a variable interest rate |
Interest paid only on your outstanding balance | Interest paid only on your outstanding balance |
Faster acceptance rate | Could take longer and be more challenging to qualify due to lack of collateral |
Personal Line of Credit vs Credit Card
| Item | Line of Credit | Credit Card |
|---|---|---|
| Interest Rate | 13% | 21.99% |
| Monthly Interest Paid | $10.83 | $18.33 |
| Payment Options | Flexible | Standard |
| Interest Charged On | The money you use | The money you use |
| Annual Fee | $25 | Up to $150 |
Discover the Benefits
Additional Information
- Available for personal use only
- Interest earned on daily closing balance and paid at month end
- Minimum credit limit - $5,000
- Limits over $5,000 to $50,000 inclusive (increments of $1,000)
- Limits over $50,000 (increments of $5,000)
- Unlimited prepayment
- Interest payable monthly on last day of the month
- Application fees may apply
- Annual line of credit/authorized overdraft fees will apply
- Minimum repayment period is daily
- Maximum repayment period is monthly
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Line of Credit: Frequently Asked Questions
When you get a line of credit, you usually take on a 5 to 10-year payment plan. If you repay your line of credit, those funds are still available to you should you need them again.
A personal loan is a “one-time” loan with a purpose, for example, a major purchase. The loan funds are placed into your chequing account for your use. Once the loan is paid off, you no longer have access to those loan funds.
A line of credit is attached to your chequing account, which means if you spend more money than you have in your account, funds from your line of credit will cover you up to your approved limit. Lines of credit are known as “revolving” credit which means you can pay off your line of credit but still have access to your approved funds anytime you need them again.
On top of that, you usually pay fixed interest on a personal loan, while a personal line of credit includes variable interest paid only on your outstanding balance.
- You must be a Canadian resident (excluding Quebec)
- You must be age 18+
- You’ll need $5 for a member share (for new members only)
- You'll need unexpired Government-issued photo ID (for example, a driver's license)
- You'll need a Social Insurance Number
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Rates subject to change without notice.
Calculators on the site are made available to you as tools for independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy. All examples are hypothetical and are for illustrative purposes only. Please contact us directly to seek personalized advice from qualified professionals for all personal finance issues.
Learn more about our accounts and services. Review our Account and Fee Information (pdf).
Identify the interest rates applicable to your account(s) and how they're calculated. Review our About Our Interest Calculations (pdf) document.
Loans and mortgages can be approved in one business day if you have submitted all required paperwork OR, you will be able to book an appointment in one business day and be approved in two businesses days if you have submitted all required paperwork.