Understanding Canadian Personal Loans

Personal loans in Canada range from $500 to $50,000+ with terms of 12 to 84 months. Interest rates vary by lender and credit score: prime borrowers (720+ credit score) qualify for 6-9% APR, while subprime borrowers may face 15-30% rates.

Personal Loan vs Other Options

Personal loans are fixed-rate, installment loans — better than credit cards (19-21% APR) but more expensive than home equity lines of credit (prime rate + 0.5-1.5%). Unsecured personal loans don't require collateral, making them accessible for debt consolidation and emergency expenses.

How to Get the Best Rate

Check rates from 5+ lenders before applying. Every hard inquiry impacts your credit score, but multiple inquiries within 14 days (for the same loan type) count as one. Use comparison tools to "soft check" rates first, then apply strategically.