Here are a few key factors that can influence the rate you're offered:

• Credit score and history: Your credit score plays a large role in determining your rate, showing lenders how responsible you are with borrowing. A higher score generally leads to better rates. You can improve your score by paying your bills on time, keeping your credit utilization low and checking your credit report regularly for errors. If you are a current client borrowing from ATB, you can check your credit score by signing in to ATB Personal.
• Secured vs. unsecured loans and lines of credit: Secured loans (like a car loan or mortgage) usually have lower rates because they're backed by an asset. If you don't repay, the lender can take the asset. Unsecured loans (like personal loans or lines of credit) don't require collateral, so they typically come with higher rates.
• Loan term and amortization: Shorter amortization periods allow you to pay less interest due to higher payments. With longer amortization periods, your payments may be lower, but you'll pay more interest overall.
• Debt-to-income ratio: Lenders prefer this ratio to be below 42%; it's calculated by dividing your total debt payments by your gross income. While it doesn't directly impact your interest rate at ATB, maintaining a lower ratio indicates that you're living within your means, which is a positive factor in your loan application.
• Relationship with ATB: We want our clients to achieve their goals. Having a strong relationship with us, such as having multiple accounts or a history of responsible borrowing, can sometimes lead to more favorable rates.

Want to explore this further? Talk to an Everyday Banking Advisor to discuss your specific situation and explore options for getting the best possible rate on your loan or line of credit. Book an appointment today.

Secured loans and lines of credit

• Require collateral. This means that you pledge an asset as collateral—something the lender can take possession of if you don't repay the loan. This could be your home, car or even investments.
• Lower interest rates. Because secured loans offer lenders a safety net through collateral, they typically come with lower interest rates. That means you'll pay less over the life of the loan.
• Higher borrowing amounts. Lenders may be willing to lend you more money with a secured loan because they have that collateral to fall back on.

Common examples of secured loans include mortgages, car loans, and home equity lines of credit. Less common examples include cash secured loans or lines of credit, as well as loans secured by RVs, boats, ATVs, manufactured homes, or raw land.

Unsecured loans and lines of credit

• Don’t require collateral. Your promise to repay is enough for the lender.
  Higher interest rates. Because there's no asset backing the loan as collateral, unsecured loans generally have higher interest rates to compensate the lender for the increased risk.
• Apply online. You can apply today from your mobile device or computer—no need to go into a branch or book an appointment.
• Faster approval. Since there's no need to appraise collateral, unsecured loans often have a quicker approval process.

Personal loans, lines of credit, and credit cards are examples of unsecured borrowing.

Get started with a loan or a line of credit at ATB.

It depends on your individual needs and circumstances. If you have assets you feel comfortable to put up as collateral and want the lowest possible interest rate, a secured loan might be a good choice. If you don’t have assets, don’t feel comfortable using assets as collateral or need money quickly an unsecured loan could be a better fit. It also depends on your goal—some goals require secured lending, while others don’t.

Still can’t decide what you need? An Everyday Banking Advisor can partner with you to discover the best solution for your financial situation. Book an appointment to get started.

The amount you can borrow depends on several factors, including your credit score, income, and existing debt. Generally, personal loans and lines of credit are suitable for smaller amounts, typically ranging from $5,000 to $50,000. These options offer flexibility and convenience for a variety of needs.

However, if you have bigger lending needs that require more substantial funding, it's best to consult with an Everyday Banking Advisor. They can provide personalized advice and explore specialized lending solutions tailored to your specific goals and financial situation. Remember, responsible borrowing involves careful consideration of your repayment capacity and long-term financial well-being.