Updated: April 2025  |  bremo.io financial guides

Best Personal Loans in Canada 2025

Finding the best personal loan in Canada requires comparing more than just the advertised interest rate. The right lender depends on your credit score, income, how quickly you need funds, and whether you're looking for flexibility or the absolute lowest cost. This guide breaks down the top options for every type of borrower.

Bottom line upfront: For good credit, start with your bank or a credit union. For fair or poor credit, online lenders like Fairstone or Spring Financial may be your best accessible option — but rates will be significantly higher.

How We Evaluate Personal Loan Lenders

Every lender in this guide was assessed on:

Best Personal Loans for Good Credit (660+ Score)

Royal Bank of Canada (RBC)

RBC offers personal loans starting around 8.99% APR for qualified borrowers. As Canada's largest bank, it has a robust online application and existing customers often enjoy faster approvals. Loan amounts range from $2,500 to $50,000 with terms from 1 to 5 years. No origination fee. Strong option if you're already an RBC customer.

TD Bank

TD personal loans are competitive for existing customers with strong credit. Rates typically start around 8.99% APR. TD offers flexible payment schedules including bi-weekly options that can help you pay down debt faster. Loan amounts up to $50,000. TD's online application is quick and you can get a decision the same day in many cases.

Scotiabank

Scotia offers personal loans from roughly 9.99% APR and up. The STEP program also allows borrowers to access home equity if applicable. Scotia is a solid choice for existing customers, especially those who can bundle with other banking products.

Meridian Credit Union

Ontario's largest credit union consistently beats bank rates for members. Rates can start as low as 7–8% for excellent credit. Not-for-profit structure means profits go back to members. Requires Ontario residency and membership. Worth opening an account just to access better loan rates.

Best Personal Loans for Fair Credit (600–659 Score)

Fairstone Financial

Fairstone is one of Canada's most established non-bank lenders, serving borrowers across the credit spectrum. Rates range from roughly 19.99% to 39.99% APR depending on your profile. Loan amounts from $500 to $50,000. Both secured and unsecured options. Branches across Canada plus online applications. Fair credit borrowers will find Fairstone more accessible than a bank.

Spring Financial

Spring Financial targets borrowers with limited or damaged credit. They offer personal loans designed to help build credit history. Rates are on the higher end but the company is transparent about costs. Their reporting to credit bureaus helps borrowers establish a credit track record over time.

easyfinancial (goeasy)

easyfinancial specializes in lending to borrowers that banks turn away. Rates range from 29.99% to 46.99% APR — expensive, but potentially a lifeline when other options are closed. Loans from $500 to $75,000. The company reports to credit bureaus, which helps rebuild credit. Available across Canada with branches and online service.

Best for Fast Funding

LoanConnect

LoanConnect is a marketplace — not a direct lender — that connects you with multiple lenders with a single application. It's great for rate shopping quickly. Some partnered lenders offer same-day or next-business-day funding. Useful for comparing options without multiple hard credit pulls.

Loans Canada

Similar to LoanConnect, Loans Canada is a comparison platform partnered with banks, credit unions, and alternative lenders. They match you with suitable lenders based on your profile. Rates vary widely depending on which lender you're matched with.

Best for Debt Consolidation

Mogo

Mogo offers personal loans specifically positioned for debt consolidation with rates from 9.9% to 47.42% APR. The Mogo platform includes credit score monitoring and a carbon offset credit card, making it appealing to financially-conscious borrowers. Loans from $200 to $35,000.

Borrowell

Borrowell is best known as a credit monitoring platform, but they also connect Canadians with personal loan products through partner lenders. The platform's credit education tools are genuinely useful for understanding your borrowing profile before you apply.

Lender Comparison at a Glance

How to Get the Best Rate on a Personal Loan

  1. Know your credit score first — Check for free via Borrowell or Credit Karma before applying
  2. Shop with prequalifications — Use soft-pull tools to see estimated rates without impacting your score
  3. Try your own bank first — Existing customers often get better treatment
  4. Consider a credit union — Rates are consistently lower for members
  5. Bring a co-signer — A creditworthy co-signer can unlock dramatically better rates
  6. Choose the shortest term you can afford — Shorter terms usually come with lower rates
  7. Compare total cost, not monthly payment — A lower monthly payment on a longer term often costs more overall

Red Flags to Avoid

Not every lender advertising personal loans in Canada is reputable. Watch for:

Provincial Licensing Matters

In Canada, consumer lenders must be licensed in the provinces where they operate. A lender offering loans in Ontario, for example, needs a licence under the Ontario Consumer Protection Act. Before borrowing from an unfamiliar lender, verify their provincial licensing status. Major provinces maintain public registries you can check online.

The True Cost Formula

When comparing loans, calculate the total repayment amount: monthly payment multiplied by number of payments. For a $100 loan at 20% APR over 3 years, you'll pay roughly $13,200 total — meaning $3,200 in interest. At 9% APR, the same loan costs about $11,400 total. The difference is $1,800, which illustrates why rate shopping pays off.

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