Loan Parameters:
This information is intended to provide a general outline of LCC's policies and loan parameters for aircraft financing in Canada and is subject to change from time to time without notice.
Apply here and one of our Finance specialists will contact you.
- Title of aircraft must be in the Borrowers name, preferably a corporation that is set up specifically to hold the aircraft.
- Approvals are good for a period of 90 days
- Legal fees for the account of the Borrower, if any
- In some cases an inspection of the aircraft may be required by LCC staff or third party or a third party valuation may be required.
A deposit (ranging from $500 to $1000) will be required upon execution of the initial offer. This fee will become the property of LCC as the Registration Fee outlined below. If an approval is not provided the fee will be refunded.
A one-time collateral search /waiver and PPSA registration fee of between $500 to $1,000.00 is applicable and is for the account of the borrower. This fee covers basic legal expenses, however if additional legal expenses are incurred, this cost will be for the borrowers account.
Rate is based on a spread over the 5 year Government of Canada Bond Yield. Rate will be fixed on the date of funding at a spread of between 3.5% to 4.5% over the current Yield. This rate can be found in most newspapers in the financial section. Total combined rate is currently between 7.5-9%.
LCC is able to provide a pre-approval that is subject to LCC receiving the deposit and is subject to LCC's final approval of aircraft for a period of 90 days at which time the approval will lapse. No additional fee for an extension is required.
- Initial review of application
- LCC to issue loan offer which outlines all terms and conditions
- Once accepted by applicant, loan is submitted to LCC Credit
- Credit decision is provided
- Documents are prepared and loan is funded as per the conditions of the approval
LCC is seeking individuals or corporations with sufficient cash flow to service debt payments, insurance costs and maintenance of aircraft along with day to day expenses. New pilots and first time aircraft owners are acceptable.
LCC will fund and value the aircraft in USD or CAD. We will require that
The aircraft to be registered in Canada and will convert the payment using the exchange rate in effect on the day of closing.
On the amounts are exchanged, repayment will continue to be CAD.
