Valley First

Loan Basics

All Valley First loans include

  • Quick approval
  • Competitive rates
  • Loan protection
  • No prepayment penalties
  • Flexible payment terms

3.20%* Special Rate

Take advantage of this limited time offer—with a rate this great, you can afford that new sundeck!

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Credit Rating Basics

Your Credit Rating

A good credit rating is precious—it's the most important factor in determining whether you qualify for a loan, mortgage or line of credit. It can make the difference between being able to reach your goals or watching as they pass you by.

Financial experts recommend you know the status of your credit rating and ensure your credit report is free of inaccuracies. Yet Equifax Canada says only 13 per cent of Canadians have ever seen their credit report.

Credit report basics

A report containing detailed information on your credit history, including identifying information, credit accounts and loans, bankruptcies and late payments and recent inquiries. Prospective lenders can obtain it (with your permission) to determine your creditworthiness.

Benefits of knowing the details of your credit report

  • You will gain an understanding of the credit approval process and see the types of credit information companies track
  • You will see who has checked your credit history
  • You can learn how to manage your credit report
  • You can identify any inaccuracies that may exist on your report and take action to have these corrected

Getting your credit report

For a fee, you can gain immediate and secure access to your credit report by visiting the Equifax Canada or the Transunion Website's. To obtain your credit report at no charge via Canada Post, call Equifax Canada at 1-800-465-7166 or Transunion at 1-800-663-9980

Reporting errors found on your credit report

Equifax provides an online investigation process to resolve errors and disputes within one to two business days.

Visit Equifax's website.

Visit Transunion's website.

Protection

Types of Protection

Loan life insurance

  • Pays the outstanding insured balance of your loan(s), up to $90,000, should you die
  • Benefits are paid directly to Valley First, ensuring there are no tax implications for your family
  • Available to anyone (up to age 70), regardless of the type of employment
  • No health questions asked and no medical examination is required
  • Covers short and long-term loans of up to 15 years
  • Protects other insurance policies (private and employee benefits) to provide income for your family

Loan disability insurance

  • Covers up to $1,000 a month in regular insured loan payments if you become sick or injured and are unable to earn an income
  • Benefits are paid directly to Valley First, ensuring there are no tax implications for you or your family
  • Premiums are included in your monthly payments for your convenience
  • Available to anyone regardless of the type of employment
  • No health questions asked and no medical examination is required
  • Covers short and long-term loans of up to 10 years
  • Protects other insurance policies (private and employee benefits) to provide income for your family

Critical illness

If you are diagnosed with life-threatening cancer, or suffer a heart attack or stroke, critical illness insurance will pay off your loan balance in full.

  • Pays the outstanding insured balanced of your loan(s), up to $90,000.
  • Available for purchase between the ages of 18 and 59. (Coverage ends at age 75.) Joint coverage is available at reduced costs.

Lingo

Loan Lingo

Asset—This is anything that represents value of ownership that can be converted into cash. Sometimes, lenders require borrowers to provide assets as collateral for loans.

Collateral—This serves to protect the lender if the borrower fails to pay the principal and interest documented under the terms of the loan agreement.

Co-Signer—An additional person who signs a loan document and takes equal responsibility for the debt. Borrowers may be asked to provide a co-signer if their credit or financial history isn't satisfactory to the lender in qualifying for a loan on their own.

Default—Non-payment of the installments due under the terms of the loan.

Gross Debt Service Ratio (GDSR)—This is the total cost of housing payments (this includes principal, interest, taxes, and sometimes heat and maintenance) divided by the family's total gross income. Generally this ratio should not exceed 35%.

Principal—The amount you still owe the lender at any time.

Rate (interest)—The return the lender receives for loaning you the money for the loan or mortgage.

Secured Loan—This is a loan in which the borrower offers an asset (e.g. a car or property) as collateral.

Term—The length of time the loan agreement exists.

Total Debt Service Ratio (TDSR)—This is the total cost of housing payments plus all other installment payments divided by the family's total gross income. Generally this ratio should not exceed 42%.

Unsecured Loan—This is a loan that is not secured against the borrower's assets. Typically, this type of loan can be used for debt consolidations, certain vehicle loans, etc.

*Rate is subject to change without notice and are available O.A.C. Terms and conditions may apply.

Ready to apply? Borrowing with Valley First is simple!

Online

Applying for a mortgage online just takes a few minutes and just four easy steps!

In Person

If you're more comfortable coming in to see us, we'd be happy to go through the application process with you.

By Phone

If you’d like to call us, here is a complete list of our branch and insurance office numbers.