Loans and lines of credit
Find the right borrowing option
There are plenty of reasons to borrow. What if you suddenly need to replace your appliances? What if you could finally start on home renovations? What if you need to consolidate your debt? Whether it’s planned or unexpected, we can help with whatever your “what if” happens to be.
To find the right borrowing solution, consider whether you need funds for a one-time purchase, or ongoing access to credit that you can use for anything, anytime. Let’s get started by reviewing your options.
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.
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
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.
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
Home equity line of credit
Rates starting at 5.95%
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.
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
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.
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.