Best Personal Loans in Canada: Rates From 8.99% to 35%
Loading article…
The best personal loans in Canada cost between roughly 8.99% and 35% APR, and where you land in that range depends far more on your credit file than on the lender's brand. We read the published terms of the main banks, online lenders and loan marketplaces on October 18, 2026. This guide compares them, explains the legal 35% ceiling, and shows how to pick the cheapest offer you can actually get. For every borrowing product we cover, start from our loans hub.
How personal loans work in Canada
A personal loan is an instalment loan: you receive a lump sum, then repay it in fixed payments over a set term, usually 1 to 7 years. The payment covers interest and principal, so the balance reaches zero on the last payment.
Most personal loans in Canada are unsecured. The lender relies on your credit score, income and existing debts rather than on an asset. A secured loan, backed by a vehicle, savings or home equity, usually costs less because the lender can recover the asset if you stop paying.
Banks price personal loans from their prime rate. As of October 18, 2026, the Bank of Canada's policy rate is 2.25% and the big banks' prime rate is 4.45%. A variable-rate loan moves with prime; a fixed-rate loan keeps the same rate for the whole term.
Best personal loans compared
The figures below come from each lender's own website, read on October 18, 2026. Banks do not publish a single personal loan rate: they quote you a rate after reviewing your application, starting from prime.
| Lender | Type | Amount | Term | APR / rate |
|---|---|---|---|---|
| TD | Bank | From $2,000 | 1 to 7 years | Quoted from prime (4.45%) |
| CIBC | Bank | From $3,000 | 1 to 5 years | Quoted from prime (4.45%) |
| RBC | Bank | From $5,000 | 1 to 10 years | Quoted from prime (4.45%) |
| LoanConnect | Marketplace | $500 to $50,000 | 3 to 120 months | 8.99% to 35% |
| Spring Financial | Online lender | $500 to $35,000 | 6 to 84 months | 9.99% to 35.00% |
| Fairstone (unsecured) | Alternative lender | $500 to $50,000 | 6 to 60 months | 29.99% to 34.99% |
| Fairstone (secured) | Alternative lender | $500 to $50,000 | 36 to 120 months | 19.99% to 25.99% |
| easyfinancial (unsecured) | Alternative lender | $500 to $20,000 | Up to 84 months | From 29.99% |
Best for borrowers with good credit: the big banks
If your credit score is above roughly 700 and your income is stable, start with your own bank. Banks charge the lowest unsecured rates in the market, and an existing client relationship sometimes earns a discount.
- TD Personal Loan: from $2,000, terms of 1 to 7 years, fixed or variable rate.
- CIBC Personal Loan: from $3,000, terms of 1 to 5 years, fixed or variable rate, prepayment at any time without penalty.
- RBC Personal Loan: from $5,000, terms of 1 to 10 years, fixed or variable rate.
The trade-off is selectivity. Banks decline more applicants than online lenders do, and a hard credit check comes with every formal application.
Best for comparing offers: loan marketplaces
A marketplace such as LoanConnect is not a lender. It matches your profile with a network of Canadian lenders and shows estimated offers. According to its site, loans range from $500 to $50,000, terms from 3 to 120 months, and personal loan APRs from 8.99% to 35%.
The main advantage is time: one form, several quotes. However, the lender you pick still runs its own approval, and the final rate can differ from the estimate. Read the lender's agreement, not only the marketplace summary.
Best for fair credit: online and alternative lenders
When the banks say no, alternative lenders fill the gap, at a price.
- Spring Financial: $500 to $35,000 over 6 to 84 months, APR from 9.99% to 35.00%. Its representative example is a $5,000 loan over 48 months at 9.99% APR: weekly payments of $29.17 and $1,066.48 of interest in total. Loans are open, with no prepayment penalty.
- Fairstone: $500 to $50,000. Unsecured loans cost 29.99% to 34.99% over 6 to 60 months; secured loans cost 19.99% to 25.99% over 36 to 120 months.
- easyfinancial: unsecured loans of $500 to $20,000, with rates starting at 29.99%; home-equity loans above $20,000 start at 9.99%.
Notice what these ranges mean in practice. The bottom of the range is reserved for the strongest files. Fairstone's own example, a $10,000 unsecured loan at 34.99% over 60 months, costs $354.84 a month, or $21,290 in total. That is more than double the amount borrowed.
How to choose the right personal loan
Compare offers on the APR, not on the payment. A longer term lowers the payment and raises the total cost.
- Check your credit first. Know your score before you apply, so you know which tier of lenders to target. Our guide to checking your credit score in Canada lists the free options.
- Prequalify with a soft check. Several lenders and marketplaces quote you without affecting your score. Collect two or three quotes before any formal application.
- Compare the total cost. Multiply the payment by the number of payments, then subtract the amount borrowed. That number is the real price of the loan.
- Read the fees. Ask about administration, appraisal, insurance and NSF fees. On secured loans, these are often built into the contract.
- Refuse optional insurance you do not need. Loan protection plans can add a significant amount to each payment.
To test different payments and payoff dates, use our debt payoff calculator.
When a personal loan is not the best option
A personal loan makes sense for a defined expense with an end date: consolidating high-interest card balances, a repair, a planned purchase. It is a poor fit in three cases.
- Recurring or uncertain needs: a line of credit lets you borrow only what you need, when you need it.
- Short-term card debt you can clear within a year: a balance transfer card can be cheaper. Compare the options in our ranking of the best balance transfer credit cards.
- An APR near 35%: at that price, cutting expenses or asking a non-profit credit counsellor for help often costs less than borrowing.
Payday loans are a different product altogether. Our explainer on payday loans without a credit score shows why their cost is so high.
Conclusion
The cheapest personal loan is almost always at a bank or credit union, for borrowers with good credit. Marketplaces save time when you want several quotes at once. Alternative lenders approve more files, but their rates often sit just under the 35% legal ceiling, so the total cost deserves a hard look before you sign.
Get our best rate finds and new guides every week: subscribe to the Ratesopedia newsletter.
Frequently asked questions about personal loans
What is a good interest rate on a personal loan in Canada?
For a borrower with good credit, a good rate is close to the bank's prime rate plus a few points. Prime is 4.45% as of October 18, 2026, so single-digit or low double-digit offers are competitive. Online lenders start around 8.99% to 9.99% for their best files, but most applicants with fair credit receive offers between 20% and 35%. Check your credit score range to see where you stand.
What is the maximum interest a lender can charge in Canada?
Since January 1, 2025, the Criminal Code caps most consumer loans at 35% APR. The APR includes interest and most fees, not interest alone. Payday loans follow a separate federal cap of $14 per $100 borrowed. Provinces add their own rules for high-cost credit, including licensing and cancellation periods. Read more on our loans hub.
Does applying for a personal loan hurt my credit score?
A formal application triggers a hard inquiry, which can lower your score by a few points for a while. A prequalification with a soft check does not affect it. Apply formally only once you have compared quotes, and avoid several hard checks within a short period. Our guide explains whether checking your credit score lowers it.
Can I repay a personal loan early?
Usually yes. CIBC states that you can repay all or part of its personal loan at any time without penalty, and Spring Financial's loans are open. Some lenders charge a fee on fixed-rate or secured loans, so check the prepayment clause before signing. Paying early reduces the total interest you pay.
How much can I borrow with a personal loan?
Unsecured personal loans in Canada generally range from $500 to $50,000. Banks set higher minimums, from $2,000 at TD to $5,000 at RBC. Larger amounts usually require security, such as home equity: easyfinancial's home-equity loans go up to $150,000. Your income and existing debt payments set your real limit.
Is a personal loan better than a credit card?
For a large balance repaid over several years, yes: a personal loan at 10% to 15% costs much less than a card at around 20% or more, and the fixed payment forces the debt down. For a smaller balance you can clear within a year, a balance transfer card may be cheaper. Compare both before you decide, starting with our low interest credit cards.
Read next
