The Most Affordable Personal Loans in Canada

Compare Personal Loan Rates in Canada

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Last updated on July 21, 2019 Views: 547 Comments: 31

In an ideal world, you’d never need to borrow money. But we all fall a bit short once in a while. A personal loan can be the safest and least costly way of closing your financial gaps.

Personal loans in Canada are made only to individuals, and most banks and lending companies have conditions about what you can use a personal loan for. There are different types of personal loans, including secured, unsecured, and reverse loans (explained below). Personal loans can have terms and interest rates that vary widely, so read our personal loans comparison for the best personal loan rates in Canada.

Best Personal Loan Rates in Canada

 Loan ConnectRefresh FinancialFerratum
Loan Size$500 - $50,000$1,200 - $5,500$2,000 - $10,000
Loan TypeUnsecured short-term personal loansCash secured savings loan Unsecured personal loans
Loan Term6-60 months36 or 60 months12 – 60 months
APR Range4.8%-46.96%7.26% to 29.95%18.90% to 54.90%
Minimum Credit ScoreNone None 550
Minimum IncomeNone specifiedNone$2,000 per month
FundingFrom 12 hoursFrom 24 hoursWithin 24 hours
Closing/Origination FeesVaries by lender, generally around $100$200-$400None
Early Payment FeesNoneN/ANone
Read our reviewRead our reviewRead our review
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Why Get a Personal Loan?

There are many reasons why you might opt to take out a personal loan:

  • To make a down payment on a new home
  • To consolidate credit card debt
  • To pay for a vacation or a wedding
  • To cover medical expenses
  • To replace expensive household appliances
  • To buy a car
  • To fund home repairs or improvements

Who Is Eligible for a Personal Loan?

To be eligible for a personal loan in Canada, you must:

  • Be over age 18
  • Be a resident of Canada
  • Be the owner of a bank account
  • Have proof of identity, like your driver’s license, photo ID or passport
  • Have proof of residence, i.e., a recent utility bill
  • Have proof of income, like recent pay stubs
  • Have proof of your regular monthly expenditure, such as mortgage or rent payments, utility costs, etc.
  • Have some kind of Canadian credit history

Meeting the above requirements makes you eligible for Canadian personal loans in general. But to get the best interest rates and conditions, you’ll need:

  • A credit score that is average to excellent – ideally over 650
  • A low debt to income ratio, namely the percentage of your income that goes toward paying debt – your debt to income ratio should be below 36%
  • No history of bankruptcy

Personal Loan Interest Rates in Canada

When you compare personal loan rates to credit card rates, personal loan rates are almost always lower. Our recommended lenders have personal loan rates that begin at 5.6%. In contrast, average credit card rates begin around 20%. Of course, interest rates for personal loans can vary widely, so it’s important to compare personal loans in Canada.

Types of Personal Loans

Unsecured Loans

These are ‘unsecured’ because you don’t put up anything as collateral to guarantee the loan. If you default on payments, you don’t risk losing your collateral, but you generally need a better credit score and will pay slightly higher interest rates for an unsecured loan.

Secured Loans

For a secured loan, you’ll have to put something up as collateral such as your house, your car, or valuable jewelry. Secured loans often have lower interest rates, but you risk losing your collateral if you can’t make the loan payments.

Reverse Loan/Cash Secured Savings Loan

A cash secured savings loan is often called a ‘backwards loan,’ because you deposit the amount that you eventually want to borrow and then can withdraw that amount as a loan later . A reverse loan helps you build your credit score fast while saving a lump sum at the same time.

Compare Personal Loans in Canada

Loan ConnectLoan Connect

Loan Connect is a lending platform that helps Canadians find a lender that suits their needs. It’s not a direct lender, but rather an access point to dozens of lenders from one application. Loan Connect’s lenders provide short term, unsecured loans, some of which are accessible even for those with a previous bankruptcy or bad credit. The only requirements for getting a loan with Loan Connect are that applicants are Canadian citizens, and that they’ve reached the age of majority in their province. Loan Connect lenders’ rates begin at a competitive 4.8% APR, but some lenders charge very high interest rates (as high as 46.96%) depending on an applicant’s credit history. Check the interest rate you’re being offered before accepting the loan and carefully consider if it’s manageable for you.

Loan Connect’s application process is quite fast compared to other personal loan providers or aggregates. Prospective borrowers can apply online in just a few minutes, get approved for a loan within around 5 minutes, and the funds usually clear into the borrower’s bank account on the same day. You won’t have to pay Loan Connect itself any fees for the service, though some of the direct lenders do charge an origination fee. As with interest rates, before accepting a loan you should check for early or late payment fees as well.

Learn more on Loan Connect here


FerratumCanadians in need of speedy cash loans will likely encounter Ferratum at some point on their search, with the popular online lender offering approval and funding for personal loans between $2,000 and $10,000 within 24 hours. Ferratum’s application form takes about 10 minutes to complete and does not require special documentation. The lender does, however, have two specific requirements that potential borrowers should be aware of before applying:

  • Credit score of at least 550
  • Minimum income of $2,000 monthly

Loans can be repaid flexibly without extra fees: just cover the interest and you’re good. APRs are about average (as low as 18.90% with a term from 12 to 60 months), but the advantage of this lender is that you can add payments or pay the loan off entirely at any time, without penalty. Ferratum also offers self-employment loans, moving and renovation loans, travel loans, medical loans and more.

*This product is only available to residents of British Columbia, Alberta, Ontario, New Brunswick, Nova Scotia and Newfoundland.

Learn more about Ferratum Loans here


*Please note this product is currently not available for residents of Quebec.

Online banking trailblazer motusbank offers personal loans and secured and unsecured lines of credit alongside other great financial products. The motusbank brand is owned and operated by Meridian Credit Union, so all deposits are CDIC insured and accountholders can expect good service despite the absence of any physical bank ranches. Personal loans up to $35,000 come with interest as low as 5.15%, with personal lines of credit as low as 5.65%. If you use your home equity to secure a personal line of credit through motusbank you’ll pay one of the market’s lowest rates on your approved limit: just 3.75%.

The new online bank also provides mortgages to its customers,  as well as RRSPs, GICs, TFSAs, chequing accounts and more. Your loan terms and amounts will vary based on your credit and other financial obligations, but terms are generally reasonable, and you can access your funds with the free debit card provided to you by motusbank.

Learn more about motusbank personal loans here

Refresh Financial

Refresh FinanicalRefresh Financial is a direct lender that offers only cash secured personal loans, also known as reverse loans, with APR rates of 7.26% to 29.95%. Its aim is to help you rebuild your credit and save money along the way so that you can qualify for the very best interest rates on unsecured personal loans, mortgages, or car loans after your Refresh Financial loan ends. You don’t have to have a good credit score or particular income level to qualify and you can set your loan amount of $1,200, $2,300, $3,200, or $5,500 and agree on terms of 36 or 60 months with your loan advisor.

A Refresh Financial reverse loan is not the same as regular unsecured or secured loans. You don’t borrow  a lump sum and then pay it back in installments. Instead, you begin by making regular monthly payments. These payments go partly towards a lump sum of savings, and partly to paying off a low level of interest. At the end of the loan period, you have a lump sum of your own money that you saved up, which you can then withdraw without the worry of having to repay it, and you also have an improved credit rating which shows that you made regular, on-time payments for a loan.

Learn more about Refresh Financial reverse loan here


borrowellBorrowell provides fast unsecured personal loans of up to $35,000 with interest rates starting at just 5.6%. There are no prepayment fees and no loan fees apart from an origination fee, which is between 1-5% of your loan amount.

To take out a loan through Borrowell, you’ll just need to apply for your credit score through the Borrowell platform and share some information. Your chances of a successful approval can be increased significantly by making sure you meet the following requirements prior to application:

  • You’re a Canadian citizen or permanent resident
  • You’re not a resident of Quebec or Saskatchewan
  • You’re at least the age of majority in the province you live in
  • You have no record of a bankruptcy or consumer proposal
  • You have no active collection or current delinquencies on file
  • You have a minimum 12 months of Canadian credit history
  • Your credit score is above 660 (Equifax risk score 2.0)
  • You have a valid account with a Canadian bank or other financial institution
  • You have a valid email address

If you’re eligible, you’ll receive a quote from Borrowell. All you’ll have to do is accept the quote, send proof of income, and verify your bank account – all online. If you’re not eligible, Borrowell sends suggestions of trusted partners who might be able to help you out.

Approved applicants will see the loan amount in their bank accounts as soon as the next business day.

Learn more about Borrowell personal loans here

Article comments

Sanjib Banerjee says:

i have applied for a PR Visa from India. Once the visa granted & I land in Canada, in the next COUPLE of days will get a personal loan of 50,000 to 100,000 (unsecured) to buy a house in India? what should be my minimum salary? how much should be the interest rate per month?

The GreedyRates Team says:

Hi Sanjib,

Thanks for the comment. We hope your transition to Canada goes smoothly! That said, there’s no salary requirement for a personal loan, but your salary is an important variable in determining the loan terms you get. You’ll get a lower interest rate by waiting to establish yourself in Canada for a year or so, first establishing some Canadian credit and a firm financial footing. If you’re transferring money to a Canadian bank (which is recommended rather than paying foreign transaction fees via Rupee transactions), then this is also the bank you should go to for a loan. Keep in touch during this process: email us at if you need any specific tips on how to best assimilate. Good luck!


Muhammad Khan says:

I have a saving of about 20% of downpayyment for a 600k house, I am looking for cheapest rate for my mortgage loan. I have a stable job and make around 100k, I bank with TD. Could you please help me getting better rates. Thanks

The GreedyRates Team says:

Hey Muhammad,

While we can’t pretend to be as knowledgeable about mortgages as we are about credit cards, you can use the internet to narrow down which lenders are most likely to approve you and offer a good rate. Many of our favorite lending aggregators also offer the same service for mortgage providers, just check the same sites that appear above for mortgages and you’ll find a couple with this option. After inputting the details and requirements of the mortgage and your financial health, these sites will show you pre-approved mortgage terms that you can then apply for. It’s a great way to “do reconnaissance” on the market before locking in your most favorable rate! Best of luck.


Marcia says:

I w ould like to now what is the best solution for me to put all my loan and put in one loan

The GreedyRates Team says:

Hey Marcia,

Thanks for the comment. Are all your balances from personal loans exclusively, or do you also have credit card balances that have become unwieldy? We ask because the best financial tool we can recommend depends on what type of debt you have. For large or various credit card balances that have gotten out of control, a balance transfer card like the MBNA True Line Mastercard is ideal. You’ll get 10 months at a rate of 0.00% for all balances you’ve transferred to MBNA, allowing you to both consolidate and make progress on these debts simultaneously.

If you’re looking for a solution that will help consolidate your personal loans, then perhaps a consolidation loan from one of the many Canadian lenders will help. In this case it can be enlightening to see your options in one go, and aggregate lender sites like Loan Connect help. Simply input your parameters and see which consolidation loans you’re pre-approved for from Canadian lenders. Let us know if you have any other inquiries!


Joy says:

I need a personal loan and my credit score is 686 no one help they sais it is high rick i just need all my small bill to be in one monthly payment

The GreedyRates Team says:

Hi Joy!

Thanks for coming to GreedyRates. If you’re got multiple small debts that are difficult to deal with collectively, then it’s probably because they all cascade into your life at the end of the month and pester you with multiple different interest rates and obligations. A debt consolidation loan is what you need, as it will lump all your balances together (credit cards, lines of credit, loans etc.) under ONE rate, so you’ll only have ONE payment to make at the end of the month.

However, you’ve identified one of the issues with obtaining one of these loans: those who need them most encounter difficulty finding lenders willing to extend a second (or third, or fourth) chance. In these cases, it’s recommended to try one of the many loan aggregator sites out there, such as Loan Connect. Input your financial details and needs, and the site will match you with all the offers you’re pre-approved for.

Another suggestion is to apply for a balance transfer card, like the MBNA True Line Mastercard. As a card that’s designed for dealing with debt, we believe a score near 700 is healthy enough for approval. Essentially, if you’re approved just use the 0.00% balance transfer promo to clear out the balances from your other cards at MBNA’s rate. Good luck!


Davide Tanzi says:

Hi there,
I would appreciate if you could give me an advice as to which financial institution or credit union in Ontario are offering the best interest rates for a loan as i would like to purchase our first family home and need a down payment of $ 70,000.00.

The GreedyRates Team says:

Hey Davide!

Thanks for the request. We’d love to delve deeply into the individual credit unions and lenders available in Ontario specifically, but they’re generally the same as are available elsewhere in Canada. For example, we see that Meridian has a strong presence in Ontario, and we’re big fans. Though we haven’t done a deep review of its personal loans, Meridian’s financial products are some of the best we’ve seen. Check them out and let us know.


Martha says:

Looking for a home equity loan (80-100,000) to put on an addition to accommodate my elderly mother. Both my mother and I are able to make payments towards the loan. Past consumer proposal prevents my bank from lending. Any advice?

The GreedyRates Team says:

Hi Martha!

Great question. Consumer proposals, as you probably know, stick on your account for a while (usually at least 6 years as is standard) so until then it’s best to go to the bank which is most familiar to you for credit. This usually means the bank that has your oldest account or the one that mediated your proposal. Asking for that much, even with collateral, is risky however. If they decline then it’ll be a hard credit check for nothing, but if the situation is dire then it could be justified. Credit unions should be a last resort as their interest rates are usually higher, but if you’re an existing member it might be ok in some cases.

Otherwise, a balance transfer from an existing card to a new card with a lower interest rate could help you free up extra room in your finances. If you have a fully utilized card and get approved for a balance transfer to the MBNA True Line card (0.00% interest on the transfer for 10 months), then you suddenly have free credit to use and your old balance free from interest. It could provide some breathing room for you, but again, only if you’re approved and have existing balances from outside of MBNA. A consumer proposal will make this difficult, so ultimately your best bet will be to ask family and friends, or slowly work yourself out of debt before taking out a loan for your family.

A secured card is useful in these situations as it’ll provide some relief if you have cash to spare, and also help to boost your score in the process. The Home Trust Secured Visa is a solid choice when used responsibly. Best of luck!


Alex says:

Do you have an article for lines of Credits ?
Best secured and unsecured ones?

The GreedyRates Team says:

Hey Alex,

Unfortunately, we don’t have any articles outlining the best lines of credit for Canadians—yet. If and when we decide to do a thorough dive into Canada’s line of credit options, you’ll be the first to know. Until then, the article above will have to suffice. Additionally, if you’d like to shoot us an email or reply to this comment, we’d be happy to dissect your financial situation and determine your best options depending on your current goals. Thanks!


Harry says:

I have $30,000 credit limit over 4 credit cards… I’ve used 50%. Each and every credit card was not used for purchases, but a balance transfer at 12% interest rate annually. So essentially I’m financing 50% of my cc utilization at 12% b/c I needed the money. I have massive amount of credit card limit left, however my credit score is POOR. This was due to 2 late payments, several credit inquiries in a short period of time as well as 2 notices in collections. I really like this website and matter of fact would like to donate if possible. You guys helped me with ways of consolidating my debt… paying 21.99 balance transfer rate would’ve been a lot more then the 12% I’m paying. My actual question is, w a poor credit rating how do I consolidate the $15,000 debt at 12% interest rate I have because I want to REBUILD my credit score… yes I’ll pay off the collection notices and get a relief from each creditor… I will try to put late inquiries off my credit profile as well. But should I go to Consolidated to put all my credit card debt in one category???

The GreedyRates Team says:

Hi Harry,

Consolidating all your debt in a single, manageable lump sum is always much easier than paying
off multiple credit cards at the same time. However, it sounds like you’ve already got it
relatively good, in that you’ve achieved a 12.00% rate on all your balances. The next step is to
combine all the balances you’re paying 12.00% on into a single card, if possible. This way you aren’t keeping track of 4 different bills every month, even if they’re all being charged the same
interest rate. This will make your life easier, and if you can get a lower rate than 12.00%, even

We need to know more information to be able to help, however. At present, we can only
assume that you’ve got approximately $3,750 on each card, each of which has an estimated
$7,500 limit. That adds up to $15,000 of debt with a $30,000 limit, or 50% credit utilization ratio
as you described. This is just a guess. We want to figure out if you can at least transfer one or
two of your balances to the other cards, thus filling their credit limit completely, cancelling one
or two unused cards, and thus reducing the number of credit cards you have in total. Even at
the same interest rate, this will be a big help.

Your utilization ratio, in this case, would rise a bit, but this isn’t your chief concern. It’s more
important to make your situation more manageable, and to introduce a secured credit card into
your financial picture. If you need to keep an unsecured card, that’s fine, but using a secured
card each month—one like the Home Trust Secured card—will help boost your score over time.
Then, you’ll be able to slowly work towards a better balance transfer deal and take care of the
remaining balance(s) you have at 12.00%. Please provide us more detail, either here or via
email, and we’ll give you some precise guidance. Thanks!

Karen Carlson says:

I need a $5000 loan

The GreedyRates Team says:

Hi Karen,

If you need a loan, then any of the banks listed in the above article will help you out. Just give them a call and inquire about a $5,000 loan, and they’ll find someone to serve you personally. We do not issue loans ourselves, but instead provide you with a comparison so that you can find the one that’s best for you. We recommend Grow, but also Borrowell if you’re looking for a low-cost alternative.

GreedyRates Staff

Armand G Laforest says:

Looking to bowrow 5000 for. Late payment

Trudy Wilson says:

I require a $20,000.00 loan until I sell my house.
I need to buy a house & my downpayment is close to $40,000.00. I have $20,000.00 at the moment.
Might you be able to help me with this personal loan?

GreedyRates says:

Hi Trudy,

GreedyRates does not issue loans itself. However, you can apply for a loan from one of the lenders featured on our site. Why not try to borrow from Borrowell or Grow? Better yet, do you have any available line of credit on your primary mortgage?

GreedyRates Staff

Andrew says:

Hey can i use a loan on a down payment for a house? are there any restrictions?

GreedyRates says:

Hi Andrew,

The cash is yours to do what you want with. That said, without knowing your financial situation, just make sure you have the monthly cash flow / income, to meet the monthly payments of your personal loan and your mortgage at the same time. There will be many housing expenses that may catch you by surprise if you’ve been a renter – such as municipal taxes, school taxes, possibly utilities and of course unexpected fixes. Leave yourself a little room.

GreedyRates Staff

Richard Monteith says:

I would like a 10000 dollar loan unsecured. I need the money to pay off debts.

GreedyRates says:

Hi Richard,

You will have to apply directly with one of the lenders above. Click through one of the links and get a free quote. If you get a quote at an interest rate and monthly payment you can afford, complete the application and you’re good to go!

Hope that helps,

GreedyRates Staff

Dee says:

I have had a very disappointing experience with Grouplend, now called Grow. They are not very transparent in their marketing. I got pre-approved with a personalized quote. Then I submitted all the documents they requested. Then no news from them. I emailed them and asked about the status of my application and they replied that “sorry, we cannot offer you a loan at this time”! I was dumbstruck as no where on their website do they mention that once, you have a personalized quote, you are still not certain to receive the loan. And I emailed back to ask on the basis of what was I not approved, they did not bother to reply. Very misleading! You don’t need a “hard hit” on your credit by going to Grow/Grouplend. Be careful is what I would recommend!

GreedyRates says:

Thanks for sharing your experience Dee. That does seem troubling. The whole point of the soft hit quote, is to avoid a decline that could negatively impact your credit score. Not sure what information their pre-approval/soft-quote system doesn’t capture that their final adjudication process does. Seems to be a gap their that is going to legitimately frustrate a lot of applicants.


GreedyRates Staff

Rosalie Skead says:

We would like to see if we could borrow up to 20,000 to pay off our credit cards

Rosalie Skead says:

I would like to pay off me and my husbands credit cards We need to borrow around 20,000. I am working and my husband is applying for disability

GreedyRates says:

Hi Rosalie,

We would first recommend trying to get a balance transfer credit card. A balance transfer promotional rate of 0% for 12 months with the MBNA platinum plus mastercard will be better than any personal loan or line of credit – nothing beats 0%. Of course make sure to make all your payments on time. You can only transfer up to 98% of your available credit line, so if you’re not given a high enough credit limit to transfer the entire $20,000, get a lower interest personal loan to paydown the rest.

Does that help?

GreedyRates Staff

Hyacinthe says:

You forgot to compare with Mogo, too.