Bank Services in Canada

Different financial establishments serve clients in Canada, including banks, brokerages, insurance companies, credit unions, and others. Depending on the type of establishment, they offer investment advice, special and savings accounts, mortgage loans, and other products.

Finance companies in Canada offer new and used car, student, demand, and other types of loans. There are two main categories of loans – unsecured and secured (the latter require some valuable item such as vehicle or jewelry as collateral). Banks offer car, construction, term, bridge, and other loans that require some type of collateral. Financial institutions have strict lending criteria when it comes to unsecured loans because collateral is not required. The term is usually shorter than that of secured loans. Different financial products are available to borrowers, including student and personal loans. There are different reasons why people borrow money – some plan to purchase a vehicle while others make investments. Various institutions offer home equity loans, secured lines of credit, and mortgages. Different borrowing solutions are available, including fixed-term, conventional, pre-approved, adjustable, and other types. A balloon mortgage is a short-term borrowing solution with a lump sum payment at the end of the term. The monthly payments are lower, but the lump sum payment is sizable. The choice of a mortgage product, much like other borrowing solutions, depends on the amount required, collateral, down payment, and other factors. Borrowers can choose from a selection of loans such as 5/1 and 5/5 adjustable rate mortgages and bridge financing. Mortgages that are interest-only have a term of 5 to 10 years and come with a higher interest rate. Banks often advertise a floating interest rate, along with no or little down payment. Affordable monthly payments and the shorter repayment term are two reasons why people choose an interest-only mortgage.

Financial institutions in Canada offer different checking and savings accounts. Customers can choose from different products such as regular and online savings accounts and CDs. Different financial establishments offer CDs, including thrift institutions and banks. Banks offer money market accounts that feature competitive interest rates and check writing privileges. Savings accounts also offer returns but lower than other products. Investment banks offer services to companies and investors and underwrite securities. Bank officials offer professional advice to private investors and companies and help them with reorganizations, stock placement, and other issues. Investment banks offer specialized services such as debt opinions, tax advice, dispute consulting, and many others. Many banks offer services and products to their business clients, including lines of credit, business and construction loans, and others. Financial establishments offer equipment financing, professional loans, business lines of credit, and other products. Finance companies offer guarantees and business-only loans.

Reference:
CIBC.com - Line of credit
CanadaBanks.net - Personal Line of Credit
Operating Line of Credit - RBC