LendingMate

LendingMate, guarantor loans in Canada

LendingMate is a Canadian financial institution specialising in guarantor loans, a type of loan where the applicant must have someone who guarantees repayment if they are unable to pay. The company operates under LendingMate Finance Inc. and offers loans to residents of Ontario and British Columbia for amounts between CAD 2,000 and CAD 10,000, with terms ranging from 12 to 60 months and an annual interest rate of 43%.

Borrower requirements and profile

The guarantor must be between 19 and 75 years old, reside in Canada, have a credit history with no defaults and have the financial capacity to cover the repayments if the borrower does not. They do not have to be a homeowner, although the company notes that being one may increase the chances of acceptance. The guarantor cannot share finances with the applicant or already be a borrower or guarantor on another LendingMate loan.

The applicant does not need to be employed, but must have a source of income to repay the loan; applicants receiving social benefits are accepted. People in bankruptcy or with an active insolvency proceeding are not accepted. The company states that it does not assess applications solely on credit score and that decisions are made by people, not just automated systems.

Application and disbursement process

Applications are made on the company's website, where the applicant states the desired amount and term. A link is then sent to the guarantor to complete their part. Once completed, LendingMate contacts the guarantor by phone to confirm their details and arrange payment, and may also call the applicant to finalise the file. The stated aim is to disburse the loan within 24 hours of the guarantor's acceptance, provided the checks are completed without issues. The money is paid into the guarantor's bank account, who then passes it to the borrower; the company justifies this practice as a fraud protection measure.

Factors that may delay the process include being unable to contact the guarantor, difficulty locating their property documents, applications submitted on a weekend or public holiday, and the need for additional documentation such as proof of identity or bank statements.

Repayment terms and fees

Interest is calculated daily, so the borrower only pays for the time they hold the loan. For example, if CAD 5,000 is borrowed over 36 months and repaid in 12 months, only the interest for those 12 months is paid. There are no fees for early repayment or for making extra payments. The company states that it never charges for late payments, letters, early settlement or anything else. Repayment is made by monthly direct debit, with debit card details as a backup if the direct debit fails.

In the event of non-payment, LendingMate sends text message reminders and, if it cannot collect, contacts the borrower by phone and email. If no agreement can be reached with either the borrower or the guarantor, the company may refer the debt to a professional debt collector or ask a court to determine the best course of action. All loans are unsecured, so the borrower's or guarantor's home or other property is not put at risk.

Representative example and current terms

The website's calculator shows an example of CAD 8,000 over 36 months with a monthly repayment of CAD 398.93 and a total repayable of CAD 14,361.48. The representative example published by the company is CAD 10,000 over 36 months, with a repayment of CAD 498.66 and a total of CAD 17,951.76. The lender states that more than 95% of applicants are approved and that it funds thousands of loans each year.

At the time of review, the website stated that it was not accepting new applications in Canada, although existing customers' loans continued as normal. For enquiries about existing loans, the company provides the phone number +1 844 505 4576 and the email collections@lendingmate.ca. It also warns of fraud attempts by people pretending to be LendingMate or by brokers acting on its behalf, and reminds customers that it never asks for money before disbursement or for bank passwords.