A Canadian moving loan can help alleviate the financial stress of changing locations. You already have enough on your mind, without worrying about where you’ll get the funds to safely move and settle in.
Don’t Underestimate Moving Costs
Let’s face it, moving is expensive. A small move across town might cost you under $1,000, but the cost of a cross-country move can easily run over $10,000. Of course, these figures depend on what you own, where you moving from and to, and whether you decide to hire a mover or do it yourself.
Will you pack your belongings yourself or hire someone to do everything? Do you rent a bachelor suit or own a three-bedroom home with an overflowing garage and storage shed. Either way, a Canadian moving loan can help you spread the expense across multiple, affordable payment.
Potential Additional Costs
If you decide to move yourself, you’ll face many costs beyond hiring a truck. You may need to ship a vehicle to your new home if you can’t drive it yourself. That can cost between $500 and $1,500.
You’ll also pay for gas, lodging, and meals if you’re doing a long-haul move. You could face significant costs for fuel alone if you’re travelling long-distance. Gas certainly isn’t getting any cheaper.
You’ll also need moving supplies such as boxes, mattress covers, furniture pads, dollies, straps, bubble wrap, packing tape, and more. You’ll probably want to change your address with the post office too. That will cost you between $90 and $110 for 12 months.
Don’t forget insurance either. Your personal insurance policy or credit card may offer some coverage, but most don’t cover moving trucks or trailers. If you’re lucky enough to have some coverage and you’re moving to another province, talk to your agent. You may need to increase your limits since the minimum insurance requirements vary between every province and territory.
Truck rental companies may offer their own insurance, but check their coverage. You’ll want at least $1 million bodily injury and property damage liability, collision coverage should you have an accident, personal and cargo insurance, and a damage waiver. Fortunately, a Canadian moving loan can help you pay all these costs and more.
Additional Costs at New Location
If you rent, you’ll probably need to pay a security deposit and a pet deposit if you have furry friends. That could tack on a substantial amount to your already strained budget.
Whether you rent or own, you’ll need rental or homeowner’s insurance. Premiums are tied to location, so there’s no guarantee you’ll pay the same amount as before. For instance, if you move from a rural to urban location, expect to pay more. If the crime rate is higher in your new area, you will also pay more.
Let’s not forget about hook-up fees. You often have to pay them, even if you stick with the same providers. Cable, internet, and utility companies charge substantial amounts and they could penalize you if you’re locked into a plan too.
What is a Canadian Moving Loan?
A Canadian moving loan is an unsecured personal loan you can use to pay your move-related expenses. You repay the loan through fixed amounts determined by the amount, interest rate, payment frequency, and repayment term.
A good lender offers a pre-approval process. They access your application quickly and only run a “soft” credit inquiry which does not appear on your credit file. If pre-approved, the lender spells out the interest rate and other terms so you can decide whether you want to move forward. You’re under no obligation to accept what they offer.
Finding a Good Canadian Moving Loan
You may find multiple lenders offering moving loans, but it is important to understand what they’re offering.
Check Their Fees
Some charge an origination fee just to set up an account with their company. This fee can range between 0.5% and 8.0%. Never pay this fee!
As an example, if you’re borrowing $8,000, that fee could cost you between $40 and $640, just for doing business with the lender. This amount may be subtracted from the loan proceeds.
Many lenders also penalize you if you want to make extra payments, early payments, or payment in-full. A good Canadian moving loan lender welcomes extra payments of any amount.
Minimum & Maximum Loan Amounts
Some lenders aren’t interested in small loans. They want you to borrow tens of thousands. Others will only lender you small amounts when you need over $10,000.
Look for a lender that offers a wide range of loan amounts. You should be able to borrow as little as $500 and as much as $15,000 for your move.
Do They Offer Flexible Repayment Terms?
A good Canadian moving loan lender offers a wide variety of repayment options. Generally, it is best to align your payments with your paydays, but you may want to spread out your payments or compress them.
Many lenders only want loans with long terms, since they earn more interest. Others won’t lend you money for more than a year or two. A good lender should offer a term as short as six-months and as long as five years. Choose weekly, bi-weekly, or monthly payments that suit your life.
Do They Have a Minimum Credit Score Requirement?
Many lenders demand a certain credit score before they’ll consider your application. So, what do you do if you have less than pristine credit? Look for a lender that uses an artificial intelligence assessment.
An AI assessment takes many more factors into account. Even if you don’t have excellent credit, chances are you’ll still qualify providing you have a steady income and three month’s banking history.
Fast Approval & Funds Release
A good Canadian moving loan lender should have a quick, easy online pre-approval process. You shouldn’t need to visit an office or spend hours filling out forms.
They should also let you know whether you’re pre-approved within minutes. No one wants to sit around wondering, especially when they’re getting ready to move.
They should also be totally transparent. Pre-approval should reveal your interest rate, payment amounts, and the exact date you’ll pay off the loan. A Canadian moving loan often offers lower interest rates than a credit card and predictable payments that directly pay down the balance. Credit cards pay off interest first, then your balance.
If you like what the lender offers, loan finalization should be very fast with money in your bank account within 24 hours. Many lenders take days or even weeks.
The FlexMoney Advantage
If you’re interested in a Canadian moving loan, FlexMoney’s got you covered. Here’s what we have to offer and why we’re a better choice for funding your moving expenses.
Our Canadian Moving Loan Application Process
Collect your banking information and then apply online at any time from any device. The process shouldn’t take you more than 15 minutes. We won’t ask you for proof of income and you don’t need to visit a brick-and-mortar office.
Our Basic Requirements
You must be a Canadian citizen that is at least 20-years old who has actively worked with the same employer for at least three months. You must also earn a minimum income of $2,000 per month and have a cellphone and email address to verify your identity.
We also consider applications based on self-employed income, Canadian Pension Program (CPP), Old Age Security (OAS), and income from various private and public pension programs.
Sorry, we can’t consider your application if you’re receiving Employment Insurance (EI), Disability Benefits, Canada Child Benefit, Student Aid or COVID-19 relief benefits.
Quick Decision
Even if you have less than perfect credit, we’ll still consider your application. Our artificial intelligence assessment system puts less emphasis on your credit file and more on your life circumstances.
We use a soft credit inquiry that does not appear on your credit file, unless you decide to go through with the loan. We’ll let you know within minutes.
Review our terms and decide whether you want to move forward. If not, no problem. It won’t impact you in any way.
Fast Funds Release
In most cases, FlexMoney can have the cash in your bank account within 24 hours. We’ll need your digitally signed loan documents first and then we’ll attend to the money within business hours.
The transfer into your bank account will also depend on your financial institution’s business hours. However, we pride ourselves in the fastest Canadian moving loan funds release available.
Find Out More About a Canadian Moving Loan
A Canadian moving loan is easier to access than you might think. If you have more questions or you’re ready to start the application process, please visit our website. We offer competitive interest rates, a quick application process, and blazingly quick funds release.