Personal Finance

Personal loan while on EI?

  • Last Updated:
  • Mar 9th, 2015 8:19 pm
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[OP]
Newbie
Mar 8, 2015
1 posts
Trail, BC

Personal loan while on EI?

hey all. need some advice. i want to apply for a personal loan to purchase a vehicle. i only want to borrow $5k, but im not working right now. im collecting EI ($2000/month) and i own my own home$185,000) and have no mortgage. i have ok credit, but i have only had a cc for 6 months. before that, i had no credit.

if i borrow $5000 over 5 years at 3% interest, thats less than $100 a month repayment. do you think the bank will give me a secured loan even though im not working? and if im borrowing such a small amount compared to the value of my home, do you think the bank will need to do a home appraisal? thanks all.
3 replies
Deal Fanatic
Apr 16, 2007
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Financial District B…
I highly doubt if you would be granted an auto loan while as a recipient of EI with any major Cdn bank. Whether it be EI or any other social assistance program they just don't qualify under our lending policies. Some subprime lenders may accept but may underwrit the loan term to when the EI ends.

If you own your home apply for a heloc.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
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Dec 8, 2010
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mikeymike1 wrote:
Mar 9th, 2015 6:44 pm
I highly doubt if you would be granted an auto loan while as a recipient of EI with any major Cdn bank. Whether it be EI or any other social assistance program they just don't qualify under our lending policies. Some subprime lenders may accept but may underwrit the loan term to when the EI ends.

If you own your home apply for a heloc.
We psuedo-remortgaged while my wife was on EI; bank just wanted to know the gross income from EI to qualify. I know a mortgage is not a car loan, and I know you have considerably more experience than I do.

But yeah, HELOC likely better.
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Aug 19, 2013
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daverobev wrote:
Mar 9th, 2015 7:30 pm
We psuedo-remortgaged while my wife was on EI; bank just wanted to know the gross income from EI to qualify. I know a mortgage is not a car loan, and I know you have considerably more experience than I do.

But yeah, HELOC likely better.
Being on EI for mat leave is different then being on EI because your not working. With mat leave you are normally going back to work, basically the bank considers it as if you still have a job.

Sorry op but I tbink your out of luck. I would be finding a job before getting a car and loan.

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