Change Your Monthly Payment Amount
Generally, when your loan status changes to Repayment, you have up to 114 months (9.5 years) to repay your loan (this is called an amortization period).
With a Revision of Terms, you may request an extended amortization period of up to 174 months (14.5 years) to reduce your monthly payment. However, in the long term, this will increase your total number of monthly payments and the amount of interest you will pay.
You can also shorten your amortization period to pay your loan off faster and reduce the amount of interest you will pay.
Revision of Terms is available to most borrowers. To discuss your options, contact us.
Interest Only Payments
If you have difficulty repaying your loan and you do not qualify for the Repayment Assistance Plan, you can temporarily pay only the interest owing on your apprentice loan. You may do this for a 6-month period, for a maximum of 12 months during the lifetime of your loan.
Accelerate Your Loan Repayment
In addition to your scheduled payments, you can make lump sum payments at any time to pay down your loan faster. The lump sum payments made while your loan is in interest-free or in Non-Repayment status will reduce the principal of your loan. Any lump sum payments made while your loan is in Repayment will first be applied to the interest you owe from the date of your last payment. The rest will go toward the principal of your loan.
Change Your Payment Frequency and Payment Due Day
When your loan enters repayment, we will create a repayment schedule for you. Your payments will be due at the end of the month, but you may request the payment due date to be changed. Also, as long as your monthly amount remains the same, you can change your payment frequency (e.g., weekly, bi-weekly, etc.).
Change Your Banking Information and Payment Method
You can pay your loan via pre-authorized debit, online or telephone banking, cheque or money order.
If you are not set up for pre-authorized debit or need to update your banking information, you can download a Pre-Authorized Payment Form. To request a form, contact us.
Upload your completed form through your CAL online service account (you must register for an online account first if you do not have one) or mail it to us.
Change to a Fixed Interest Rate
The default interest rate type on your loan is set to a variable interest rate. This can fluctuate based on the changing rate of prime.
You have the option to select a fixed interest rate (where the rate does not change for the duration of the repayment of your loan). Please note that once you have chosen a fixed interest rate, the variable rate option is no longer available.
For Canada Apprentice Loans:
- the variable interest rate is equal to the Prime Rate;
- the fixed interest rate is the Prime Rate + 2.0%