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Find the right borrowing option

There are plenty of reasons to borrow. Maybe you’re looking for a new vehicle, or considering home renovations. You might borrow funds for investment or tax purposes. Maybe you’re wondering about the benefits of debt consolidation to reduce your interest costs. Whatever the reason, we can help.

To find the right borrowing solution, consider whether you need the funds for a one-time purchase, or if you’d prefer ongoing access to credit that you can use for anything, anytime. Let’s get started by reviewing your options.

Ways to borrow

Personal loan

When you qualify for a personal loan, you get a lump sum of money upfront and pay it back over time in monthly payments. The interest rate is usually fixed, which means the monthly payments stay the same over the life of the loan.

dad with two young kids laughing on the couch

A personal loan is perfect if you:

  • Want to borrow for a specific purchase or expense
  • Prefer to make a fixed payment every month
  • Want to pay the loan off over a predetermined period
Talk to us about a loan

Personal line of credit

A personal line of credit gives you greater flexibility than a personal loan as it allows you to borrow money as you need it, up to your approved limit. The interest rate is variable, which means the amount of interest you pay can vary from month to month.

mom dad and daughter in the kitchen

A personal line of credit is perfect if you:

  • Want ongoing access to funds - you only pay interest on what you borrow
  • Flexible and manageable interest-only payments, up to your approved limit
  • Want credit available for any needs or emergencies
  • Are comfortable with a variable interest rate that may change from month to month
Talk to us about a line of credit

Home equity line of credit

A home equity line of credit, sometimes referred to as a “secured line of credit,” is secured by the equity in your home. The limit is often higher, which is beneficial for larger borrowing purposes, and usually at a lower rate than unsecured types of credit. The interest rate is variable, so the interest you pay can change month to month. Plus, you can get a combined mortgage and line of credit with our Meridian Flex Line Mortgage.

man and woman sitting in their kitchen looking at a tablet

A secured line of credit is perfect if you:

  • Own and have equity in your home
  • Want ongoing access to funds and payments as-low-as interest only on what you borrow
  • Want access to funds for larger expenses, like home renovations
Apply online

Estimate your loan or line of credit payments

The tax benefits of borrowing

There can be tax advantages to borrowing for investment purposes. For example, if you borrow to invest in income producing investments, like dividend paying stocks or rental property, you can write off the interest as an expense. So, if you paid $6,000 in interest payments for the year, and you have a marginal tax rate of 40%, you could get back $2,400 of it. Every situation is different so be sure to consult with your accountant or tax advisor.

It’s worth noting that if you get a loan to invest in a tax-sheltered account, like an RRSP, TFSA, and/or an RESP, then the interest is not tax deductible.

Consider your options, but be sure to talk to your accountant or tax advisor before making any decisions.

Creditor insurance

Taking on a loan or line of credit is a big financial commitment. Meridian offers creditor insurance for loans and lines of credit just in case the unexpected happens. With creditor insurance, you can feel secure knowing that you are protected. In case of loss, illness, or disability – your payments will be made per the conditions of the insurance agreement.

Get in touch

If you have questions about borrowing or building credit, our Meridian financial advisors can help. Talk to us in-branch or connect with us by phone.