Peter Van Loan is committed to improving the lending industry and encourages us to learn from the positive experiences of the most comparable country to Canada. Thus, the lending industry in America has several significant differences from the loan options available in Canada. The new convenient conditions can serve as tangible financial support for hard-working families.
The home lending market in the United States offers mortgages with terms up to 30 years against the Canadian maximum of 5 years. Peter Van Loan believes that extending home loan terms can help reduce the financial burden and increase the chances of buying a new real estate for more of the working residents. In addition, mortgage interest is deductible in the US. This tax break is dearly cherished by American homeowners and can bring additional financial assistance to Canadian families.
At the same time, auto loans in Canada are cheaper and less complex in terms of loan application criteria. Most Canadians with a credit score above 630 can get a car loan at a reasonable interest rate, while in the US, you must have a score above 660.
Personal loans in Canada are almost twice cheaper than in the United States. The average personal loan rate in the US is about 14.5%, while, according to the Bank of Canada data, this figure is about 6.4% in Canada.
Speaking about payday loans, Peter Van Loan noticed there are no key differences in terms and conditions. At the same time, the short-term loans industry in America is more advanced and popular.