In life, it may seem like you are constantly footing the bill for one expensive thing after another. And unless you were born with a silver spoon in your life, you will probably have to find a way to pay for these kinds of moments. Knowing what types of loans are available out there is a good start. Here are some of the loans you will probably have to take out in your life, so it is best to be prepared for them when the need arises.
The car loan is probably the first loan you will take out in your life. It seems that once your senior year comes around in high school, you get that itch to get your own vehicle. Along with it comes the need for a job, too, of course. There will definitely be a need for your parents to cosign this loan as well. The real world will hit you and you will probably start paying off that car loan even before you reach your 18th birthday. Welcome to adulthood!
If you choose to pursue college after graduating from high school (in this world, you may be just fine avoiding college and picking up learning a trade instead), you can count on some expensive college loans. Isn’t it crazy to borrow $15,000 a year for the next four years to simply land a job that pays you $30,000 a year to start? You could be paying off those college loans well into your forties! If you choose to go to college, there is no shame going with a junior college for the first couple of years. You could cut your loan amount significantly if you do!
This is the big one, so choose the financial institution that is providing this loan carefully. They may try to sell you on a 30-year mortgage, but a 15-year mortgage will not cost you that much more per month and it will end 15 years earlier. Shop wisely and find a place that will give you the lowest interest rate. This will probably be the biggest purchase in your life as houses don’t come cheap, so be prepared.
You may also eventually need a personal loan, small business loan, or even a payday loan down the line. Look everywhere you can for the best rates. Luckily, you can find loans in Montreal that are pretty competitive.