Spring Financial Review 2025

Spring Financial is a leading Canadian fintech company that provides innovative financial solutions as an alternative to traditional banks and credit unions. This review looks in-depth at their mortgage and home equity offerings, assessing their value for Canadian homeowners.

What is Spring Financial?

Spring Financial is a financial technology company serving Canadians nationwide, both online and via mobile. They aim to provide consumers with fair and transparent financial products through an easy digital process. Their mission is to increase access to premium financial products for all Canadians, empowering them to responsibly build credit, save money, and access loans.

Since starting operations in 2014, Spring Financial has helped over 250,000 customers access over $250 million in loans. They now have over 1 million applicants across Canada. They offer financial inclusion to consumers with poor or no credit history, help Canadians build credit and access affordable financing.

Their digital processes and focus on financial inclusion through credit building have quickly established Spring Financial as a major fintech player in Canada.

What Products Does Spring Financial Offer?

Spring Financial provides diverse borrowing solutions, including personal loans, credit-building services, mortgages, and home equity financing.

Mortgage Products

Their experienced brokers can help clients get pre-approved and find competitive mortgage rates through their network of over 40 lenders.

• Mortgages for home purchases, refinancing, or renewals
• Fixed, variable, and adjustable rate options
• Flexible terms from 6 months to 10 years
• Competitive rates from major banks and credit unions

Mortgage Refinancing

Existing homeowners can refinance their mortgages to access equity or secure a better interest rate. Benefits of refinancing:

• Improve cash flow with a lower interest rate
• Consolidate high-interest debts
• Complete home renovations
• Access built-up home equity

Home Equity Loans

These close-ended loans allow homeowners to leverage home equity for large expenses. They broker all types of home equity loans.

• Home equity line of credit (HELOC) – Revolving credit up to 65% of home value
• Closed-end home equity loan – Fixed amount loan up to 80% of home value
• Home equity loan for debt consolidation – Consolidate other debts into one manageable payment

Line of Credit & Mortgage Combo

A HELOC can be combined with a mortgage for flexibility. This allows homeowners to leverage the mortgage and available home equity as needed. It provides ready access to funds, but variable interest rates carry some risk.

• Acts as a credit line
• Withdraw funds as needed
• Only pay interest on what you use
• Typically, variable interest rates

HELOCs provide flexibility to borrow against your home’s value. However, discipline is vital, as overspending risks unaffordable payments if interest rates rise.

Evergreen Loan

After finishing The Foundation, borrowers get guaranteed access to the Evergreen Loan of $1,500 at an interest rate of 18.99%.

• Amount: $1,500
• Interest Rate: 18.99%
• Term: 18 months
• Payments: As low as $44 bi-weekly
• Benefits: Continue building a credit history. Access funds at a lower rate than traditional lenders.

The Evergreen Loan provides an affordable borrowing option compared to high-interest credit cards or payday loans. Timely repayments are also reported to credit bureaus to help improve the borrower’s credit profile.

Spring Financial Unsecured Personal Loans

Spring Financial offers unsecured personal loans from $500 to $35,000 to customers across Canada.

• Loan Amount: $500 to $35,000
• Interest Rate: 9.99% to 46.99%
• Term Length: 6 to 60 months
• Payments: As low as $31 bi-weekly
• Funding Time: 1 to 2 days via direct deposit

These personal loans can be used for almost any purpose, such as debt consolidation, renovations, or unexpected expenses. They aim to be inclusive, looking beyond credit scores to get more applicants approved.

The Foundation Program

The Foundation Program is a 12-month credit-building program designed to help Canadians with limited credit histories establish and improve their credit score. It has a 100% approval rate, making it highly accessible.

• Payments: Participants make bi-weekly payments of approximately $66. A portion goes into savings, while the remainder is reported to credit bureaus.
• Benefits: Helps build credit history from the ground up. Participants save $750 after 12 months.
• Interest Rate: 0%
• Availability: All provinces except Saskatchewan and New Brunswick.

By completing The Foundation and making timely payments, borrowers can qualify for better loan rates and access a wider range of financial products in the future.

Borrowing with Spring Financial in 2025

Understanding Spring Financial’s repayment terms and interest rates for their products can help borrowers manage their payments effectively.

Spring Financial Repayment Options

Spring Financial offers flexible repayment frequencies:

• Bi-weekly – Coincides with paycheck cycles for easy budgeting
• Semi-monthly – Twice per month instalments
• Monthly – 12 equal monthly payments

Borrowers can choose the repayment schedule that best matches their income stream.

A key advantage is that borrowers can repay any outstanding principal early without penalties. This allows savings on interest costs.

Spring Financial Interest Rates

Their interest rates are based on individual factors, including the borrower’s credit history and existing debts.

• For unsecured personal loans, rates range from 9.99% to 46.99%.
• The Evergreen Loan rate is 18.99%.
• The Foundation Program has a 0% interest rate but also does not provide upfront funds.

By assessing each application comprehensively, they can match borrowers with fair rates according to their financial situation and risk level. Their rates are competitive, especially for borrowers with poorer credit scores who may struggle to find affordable financing elsewhere.

How to Qualify for Spring Financial Loans?

Spring Financial maintains straightforward eligibility criteria for its various products:

General Criteria

• Age of majority in your province
• Canadian resident
• Valid government-issued ID
• Income source – employment, benefits, pensions, etc.
• Homeownership status for Mortgage and Home Equity Loan products

Documentation Needed

• Proof of identity
• Income verification – pay stubs, tax documents, bank statements
• Bank account details
• Contact information

Specific required documents, income levels, and credit score requirements vary between different loan products. Documents can be easily uploaded online as part of the application process. By keeping requirements simple, they facilitate quick approvals.

The company serves clients nationwide, with products accessible in all provinces and territories.

How can you apply for a Spring Financial Loan?

Spring Financial offers a convenient and seamless application process with two options:

• Online: The online application form takes just minutes to complete. Required details include your personal information, income, employment, expenses and assets/liabilities.
• Phone: Call 1-877-393-1516 to speak with an associate who will take you through the application process.

They offer a fast and user-friendly application process. Here are the 5 key steps:

Step 1: Create an Online Account

Go to springfinancial.ca and enter your name, email, and password to register.

Step 2: Select Desired Product

Choose which loan or credit-building product best suits your needs.

Step 3: Fill Application

Complete the online application form. This only takes a few minutes.

Step 4: Upload Documents

Follow the instructions to upload your ID, proof of income, and any other required documents to support the application.

Step 5: Get a Decision

You will usually receive a decision within the same day or as fast as 30 minutes.

Once approved, you can receive your funds via direct deposit within 1-2 business days. The entire process, from funding application, can be completed conveniently from home.

Why Choose Spring Financial?

Spring Financial provides solutions tailored to consumers with unique credit needs:

Credit Building Opportunities

Programs like The Foundation help consumers establish or rebuild credit through timely payments and ongoing credit profile monitoring.

Accessible Financing

Focusing on financial inclusion provides access to loans and mortgages for consumers who may not qualify with traditional providers.

Debt Consolidation

Products like personal loans or home equity solutions consolidate high-interest debts into more manageable payments.

Motivation to Save

The Foundation program incentivizes consumers to make reliable payments while simultaneously building savings.

For Canadians with poor credit or difficulty accessing traditional financing, they provide quality alternate solutions centred around responsible borrowing and financial improvement.

What are the Cons of Spring Financial Loans?

While they provide helpful loan products, there are 4 potential downsides borrowers should consider:

• Interest rates can be quite high, especially for borrowers with poor credit. Rates on personal loans can reach up to 46.96%.
• Strict repayment terms mean missed or late payments, which results in penalties and added interest charges.
• Risk of repossession with home equity loans – if unable to repay, your home is at risk.
• Variable rates on HELOCs may increase payments if interest rates rise.

Consumers should weigh the costs and risks against the benefits when considering Spring Financial loan products. Understanding the terms and ensuring you can make repayments is key.

Alternatives to Spring Financial

Let’s examine the top alternatives of Spring Financial loans for consumers to consider

Personal Loans

• Fairstone Financial – Unsecured loans from $500 up to $35,000
• easyfinancial – Loans ranging from $500 to $15,000

Credit Building

• Refresh Financial – Credit building loans from $200 to $2500
• GT Credit – Loans to build credit through cash holdbacks

Mortgages and Home Equity

• KOHO – Combines everyday spending, savings and home equity access
• Manulife Bank – Range of competitive mortgage and HELOC options

While Spring Financial is a strong option, consumers are encouraged to compare interest rates, fees, eligibility criteria and other factors against competitors when choosing a lender.

Key takeaways

Here is a summary of the key products offered by Spring Financial and their key features:

Product	Key Features
The Foundation Program	– 12-month credit building program – $66 biweekly payments – Builds credit history – 0% interest rate
Evergreen Loan	– $1500 loan after completing The Foundation – 18.99% interest rate – 18-month term – $44 biweekly payments – Continue building credit
Unsecured Personal Loans	– $500 to $35,000 loans – 9.99% – 46.99% interest rates – 6 to 60-month terms – Funding in 1-2 days
Mortgages	– For home purchases, renewals, refinancing – Offered through a network of 40+ lenders – Competitive rates and flexible terms
Home Equity Loans	– Access home equity for large expenses – HELOCs and closed-end home equity loans – Consolidate debts into one payment
Mortgage + HELOC Combo	– Combined features of mortgage and HELOC – Single customized lending solution

For Canadians with limited credit history or below-average credit scores, it provides valuable services to help establish credit, borrow at reasonable rates, and consolidate debt.

While interest rates can still be high compared to “prime” borrowers, their loans are generally more affordable and flexible than payday loans or credit cards. Their application process is easy and efficient, and funds are available promptly upon approval.

FAQs

Article Sources

1. Spring Financial Reviews, Ratings And Fees
2. Spring Financial Our mortgage solutions