Personal Loans in Canada (2026): Compare Offers for All Credit Types

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✍️ Written & fact-checked by the LoanWave Editorial Team · Last reviewed October 8, 2026 · Sources: Bank of Canada, FCAC, OSB, Equifax Canada

A personal loan is one of the most flexible ways to borrow money in Canada. You get a lump sum up front, repay it in fixed instalments over a set term, and know exactly when the debt will be gone. Whether you’re covering a car repair, a medical bill, a move or a wedding, comparing a few offers before you sign can save you hundreds — sometimes thousands — of dollars.

This guide explains how personal loans work in Canada, what lenders look at, what rates to expect and how to compare offers for free through LoanWave.

What is a personal loan?

A personal loan is an instalment loan: you borrow a fixed amount, then repay it with interest in equal payments (weekly, bi-weekly or monthly) over a term that usually runs from 6 months to 5 years. Most personal loans in Canada are unsecured, which means you don’t have to put up your car or home as collateral.

Common reasons Canadians take out a personal loan:

• Consolidating credit card debt into one lower payment
• Emergency expenses — car repairs, dental work, vet bills
• Home improvements and appliance replacement
• Moving costs, weddings and family events
• Covering a gap between jobs or a slow season for self-employed workers

How much can you borrow?

Online lenders in Canada typically offer between $500 and $50,000. Banks and credit unions can go higher for borrowers with strong credit. The amount you’re offered depends mainly on three things:

1. Income — lenders want to see stable income that can cover the payment.
2. Debt-to-income ratio — the share of your monthly income already going to debt.
3. Credit score — Canadian scores run from 300 to 900 and are reported by Equifax and TransUnion.

Personal loan interest rates in Canada

Rates vary widely depending on the lender and your credit profile. As a rough guide:

Important: since January 1, 2025, Canada’s criminal interest rate is 35% APR. Most consumer loans cannot legally exceed it. If anyone offers you a loan above that, walk away. Learn more in our guide to personal loan interest rates in Canada.

What do lenders look at?

• Proof of income: pay stubs, bank statements or, if you’re self-employed, Notice of Assessment from CRA.
• Employment stability: how long you’ve been with your employer or in business.
• Credit report: payment history, credit utilization and recent applications.
• Canadian bank account: needed for deposit and repayment.
• Age and residency: you must be the age of majority in your province and a Canadian resident.

Secured vs unsecured personal loans

An unsecured loan is approved on your credit and income alone. A secured loan uses an asset (often a vehicle) as collateral, which can help borrowers with lower credit get approved or get a lower rate. The trade-off: if you stop paying, the lender can take the asset.

How to compare personal loan offers

Don’t just look at the monthly payment. Compare:

• APR — the yearly cost including interest and mandatory fees
• Total cost of borrowing — what you’ll pay in total over the full term
• Fees — origination, administration, NSF and late-payment fees
• Prepayment rules — can you pay it off early without a penalty?
• Term length — a longer term lowers the payment but raises the total cost

How to apply through LoanWave

1. Click “Compare personal loan offers” on this page.
2. Answer a few quick questions about the amount you need, your income and your situation.
3. See lenders you may qualify with. Initial checks with most partners use a soft inquiry that does not affect your credit score.
4. Review the offer carefully and apply directly with the lender you choose.

LoanWave is free to use. We never charge you a fee, and you’re never obligated to accept an offer.

Sources & methodology

This guide was researched and fact-checked by the LoanWave editorial team against Canadian government sources, federal law and national credit bureau data. Figures are the latest published at the time of review; lender rates and terms change often, so always confirm the final cost in your loan agreement. Example calculations use standard amortization formulas and are for illustration only. LoanWave earns referral commissions, but partners do not review or approve our editorial content.

1. Financial Consumer Agency of Canada — Personal loans
2. Financial Consumer Agency of Canada — Credit reports and scores
3. Cassels — Changes to Canada's criminal rate of interest (35% APR, Jan 1, 2025)
4. Bank of Canada — Interest rate announcement, September 2, 2026
5. Wealth Professional — Canada's consumer debt hits $2.68 trillion in Q2 2026 (Equifax data)

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